Independant Contractor - very low income help with taxes?
I searched and couldn't find the answers to a couple of particular questions.
I'm an independant contractor - I grossed $5444 last year from that position.
I also did a 50/50 split with a fitness studio to teach pole which I have no financial records of nor do I have financial records of any pole lessons I gave.
SO my questions is I used paypal for the pole job (only a few times to accept payments from students) but I know I didn't net much - how do I claim this on my taxes and under what catagory should it go?
Second because I grossed so little do I have to pay taxes at all? Including Medicare and FICA?
Third because I grossed so little is it even worth it for me to write off travel expenses and such?
Re: Independant Contractor - very low income help with taxes?
Quote:
Originally Posted by
Charlee
I searched and couldn't find the answers to a couple of particular questions.
I'm an independant contractor - I grossed $5444 last year from that position.
I also did a 50/50 split with a fitness studio to teach pole which I have no financial records of nor do I have financial records of any pole lessons I gave.
SO my questions is I used paypal for the pole job (only a few times to accept payments from students) but I know I didn't net much - how do I claim this on my taxes and under what catagory should it go?
For all the work you did as an independant contractor, you will file a 1040 Schedule C. [I'm assuming you did not form a corporation or LLC.] Place all your income and expenses for your work on that Schedule C. I think Paypal has some kind of report where you could figure out how much you received.
Quote:
Originally Posted by
Charlee
Second because I grossed so little do I have to pay taxes at all? Including Medicare and FICA?
Yes. The threshold is $400 or more.
Quote:
Originally Posted by
Charlee
Third because I grossed so little is it even worth it for me to write off travel expenses and such?
Yes, every little bit helps. You'll get at least 15 cents on the dollar in savings for each dollar of expense.