Am I considered an independent contractor or something? How do I pay taxes/Do I need to pay taxes?
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I'm unemployed, but not drawing unemployment -- I just got out of school and I'm attempting to join the military. I've been doing side work for a month or two, but never considered it was a 'job' until recently. I only make about 80-120 dollars a week at the most. I do research for a guy (just silly fact lists and stuff for his website), and he sends me money via paypal. I'm not sure how much I've made total -- maybe 800 dollars? Enough to buy my food while I was in school and to give me some added cash now that I'm not. The money isn't taxed, so I'm sure I have to pay taxes on it at some point. Is there an amount at which I have to pay taxes (like $2k, or something?) and how do I go about paying them if I don't get a w2 thingy that you get with real jobs. Or is this considered, like, a hobby or something since it's not really a significant source of income. I wouldn't care too much, but eventually I'll have a very thorough background check done on me, and I'm worried that random deposits of 40 or 50 into my account one or two times a week is going to cause problems/delays. I really appreciate any help you can provide!
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Answer:
1. You are considered an independent contractor or self-employed. 2. The amount at which you need to pay is $400, so you are way beyond that already. 3. Even if it was considered a hobby, which it is not, it would still be taxable. 4. Since the total for the year will be approximately $5000, there will probably be no regular "income tax" and you will only have to pay self-employment tax, which is 15.3%. 5. The forms required are Form 1040, Schedule SE, and either Schedule C or Schedule C-EZ.
Professor Coldheart! at Yahoo! Answers Visit the source
Other answers
The filing requirement is only $400 for the entire year. You are already over that.
Wayne Z
Whether it's a hobby or work as an independent contractor, you are legally required to file if you make over $400 for the year. You'll owe self-employment tax of around $113 if you made around $800 and that's your only income for the year. You won't owe federal income tax. You'll file IRS form 1040 with schedules C-EZ and SE and pay the SE tax with that.
Judy
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