Skip to content

Filing requirement for self-employment income

January 21, 2015

Suppose your only income comes from a work-from-home part-time project and it only amounted to a few thousand dollars last year. Do you need to file an income tax return? Yes, says the IRS: “You must file Form 1040 if you owe any self-employment tax.”  Confusion comes from the fact that low-income earners may be exempt from income tax. But self-employment tax is a separate issue that does require filing. This is considered self-employment income.

Consider two additional points:

1) This filing requirement does not actually mean that you will owe any tax. In many cases the situations as described above the earned income credit would offset the self-employment tax.

2) Filing a self employment tax return, even at a small amount, may help you qualify for social security benefits so this works in your favor.

www/tonynovak.com/taxes.html

From → taxes

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: