Results 1 to 5 of 5

Thread: i need help

  1. #1
    Featured Member blondi553's Avatar
    Joined
    Nov 2005
    Location
    ?
    Posts
    1,515
    Thanks
    0
    Thanked 2 Times in 2 Posts

    Default i need help

    i just started dancing like a week ago, and i was wondering if u have to make a certain amount of income to even have to file taxes at the end of the year. is there a website that i could go to that could make me understand this concept any better? I have already read many posts on here and none of them have seemed to help me. do any of yall have any advice?

  2. #2
    Veteran Member susie's Avatar
    Joined
    Nov 2005
    Location
    used to be cleveland, now it's michigan
    Posts
    299
    Thanks
    0
    Thanked 3 Times in 3 Posts

    Default Re: i need help

    You want to file every year, even if your only claiming zero. When the IRS has no records of you, thats when they get curious.
    You can call HR Block, or even take their free taxes course, to get super in depth ansers, I'm sure some one here knows more about this though.
    As far as claiming income, I beleave if you make less then ten grand in a year, you do not have to pay taxes on it.
    Susie

  3. #3
    Senior Member DanMorris95156's Avatar
    Joined
    Apr 2005
    Location
    San Jose, CA
    Posts
    94
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: i need help

    The income level threshold for self-employed individuals (1099 types) is $400 (the amount net self-employment income you can earn before paying social security taxes) - the income taxable amount is more like $7k (the total of the standard deduction and exemption). Susie is correct in that you want to file, claim you correct deductions, and stay within the system.

    Regards,

    Dan Morris
    Daniel D. Morris, CPA
    [email protected]

  4. #4
    Featured Member blondi553's Avatar
    Joined
    Nov 2005
    Location
    ?
    Posts
    1,515
    Thanks
    0
    Thanked 2 Times in 2 Posts

    Default Re: i need help

    yall were saying to file anyways so that they had a record of me, but i also have a regular day job and i wont be doing the dancing thing that often maybe 1 day a weekend every now and then. so i was wondering if they would find out some way....i dunno im just very new at this and very confused. =(

  5. #5
    Senior Member DanMorris95156's Avatar
    Joined
    Apr 2005
    Location
    San Jose, CA
    Posts
    94
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: i need help

    Dear Blondie -

    Will they find out? That is the proverbial question for all people attempting to avoid paying taxes. Here is the perspective from my viewpoint. The probability of being "caught" - (e.g. the IRS or state finding out about the unreported income) - is probably remote. But there are a lot of assumptions in this summation:

    Notably the following: 1) does the dance studio report the income (maybe without telling you) because they are audited (frequently happens); 2) you are unfortunately audited for some reason {rare}; 3) your friends/boyfriend/girlfriend/spouse gets pissed at you and reports you {occurs more than you would like to know}; 4) your income is in all cash and you don't flow it through banks - and it is small.

    Now, about 12-15% of the econmomy in the US is probably partially or fully underground at some level or there is some level of cheating. Now there are philosophical reasons (high taxes) (the feeling that everyone else is doing it, etc.) - these are all just BS excuses for looking for a free ride and have others pay for things that you use.

    The consequences are severe. First monetary - like 2x - 3x the original tax. And........free nights at the grey bar hotel (jail) - now federal evaison is a federal crime and fed prisons are better than state ones.

    Not worth it in my professional opionion.

    Avoid the thought.

    Dan
    Daniel D. Morris, CPA
    [email protected]

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •