How Much Money Do You Have to Make to File Taxes?
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How much money do you have to make to file taxes?...
What is the minimum income to file taxes?...
These types of common tax questions have been asked over & over again on forums and message boards all across the web.
It's a Good Question with Multiple Answers. Read on...
The requirements will vary depending on 3 Major Factors: Your Age, Filing Status, and Type of Income You Receive. For example if you’re single and under 65 years of age, and earned at gross income of least 9,350 then you need to file. And if you were 65 years or older and had a gross income of at least 10,750 you need to file.
These filing requirement variations can go on & on all day long. Again, it all depends on the 3 Major factors of Age, Filing Status and Income Type Received. IRS 1040 Manual gives further details concerning the question of How much money do you have to make to file taxes. (Once there if you scroll down about an inch you will see a chart that breaks different scenarios down for you.)
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NOTE: This is the latest info that I've found (updated 1/5/11). Tax laws change like the wind which is why it's always best to consult with your personal accountant or tax professional. This hub serves as an informational guide only.
NOTE 2: You’re also required to file if you had net earnings i.e., after expenses in self-employment income of at least $400. Refer to my List of Tax Deductions Self-employment / Business hub to discover multiple ways to minimize your business tax liability.
Are you SURE you're an employee??? - You may think that you're an employee BUT you could actually be an independent contractor (self-employed individual) and not even realize it!
Well I've got news for you...
If your job surprising doesn't take any taxes out your check - and you receive a 1099 rather than a W2 during tax season -- Then YOU my friend are considered a self-employed individual in the eyes of the Government, and YOU are responsible for paying personal taxes and subject to self-employment tax as well.
Many employers have been "hiring" people like this in order to avoid the expenses of hiring "real employees" while still maintaining complete control over you as an employee - even though you're not. But that's a whole 'nother story. Now I'm not trying to get you all revved-up about your job because we all need to keep food on the table -- but hey that's the real scoop!
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Forms
As an employee, you should receive W2 forms that reports your earnings for the year. If you were an independent contractor then you should receive a 1099 form. If you were both, then expect to get both. When you file, in order to maximize your return and lessen the amount of taxes that you owe, be sure to deduct as many legitimate items as possible. Consult with with your accountant or tax professional for best results.
Deadline
April 15th of each year is the deadline for filing your Federal individual income tax return. If you miss this date you can request an extension. But I advise you to do everything in your power NOT to miss the deadline. Just get this tax stuff out the way to avoid extra hassle, fees and delay.
Filing When You Don’t Have To
Filing even when you don't have to is not a bad idea. It could turn out to be very beneficial for you! If you’ve earned any Federal Income or Earned Income Credit (EIC), it is recommended that you file anyway - because you may be able to get a return. You definitely don’t want to leave money on the table now do you?...didnt think so.
The IRS puts it like this: “Refund. Even if you do not have to file a tax return, you should file to get a refund if box 2 shows federal income tax withheld or if you can take the earned income credit…" See this W2 example and once there just scroll down past the form for details. If you don’t take time to enlighten yourself about this tax stuff, Uncle Sam definitely won’t chase you down to give you your money. And they make that very clear in their own words.
Free Vs. Paid Tax Assistance
If you just can’t afford to hire a Tax professional to work on your behalf, there are a few places you might be able to get them done absolutely free. You can check your local government offices or do a “free tax” search online. However, I don’t trust or recommend this method.
Completely free tax route should be last resort in my opinion. It’s like getting a Public Defender to defend you in a legal case. Who do you think will work harder for YOU: A Free Public Defender hired by the State/Government - Or - Your own Personal Attorney hired by YOU to work specifically in your best interest? ...nuff said.
See, it’s the same with taxes. Keep in mind: The Government is not in the business of giving away money. They want to keep every penny they can possibly get ~ You Can Bank On That!
(I'd much rather file through a Free independent tax service like TaxAct rather than trusting some government program.) But hey that's just me!
Final Word From Me...
Ok now move your head a little closer to the screen and listen v e r r r y closely, I’m only going to say this once!
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THE GOVERNMENT WILL NOT REFUND ANY MONEY OWED TO YOU IF YOU FAIL TO FILE. THEY WILL NOT TELL YOU. THEY WILL JUST KEEP YOUR MONEY. THEY ARE NOT IN THE BUSINESS OF PAYING OUT MONEY VOLUNTARILY.
THERE ARE BILLIONS OF UNCLAIMED FUNDS SITTING INSIDE THE GOVERNMENT BANK VAULT RIGHT NOW AS WE SPEAK -- COLLECTING BIG FAT INTEREST FOR THEM. YOU MUST CLAIM YOUR MONEY TO GET IT. IF YOU DON'T, THEN THEY CONSIDER IT FAIR GAME TO KEEP IT.
DON’T LEAVE MONEY ON THE TABLE -- DON’T LEAVE MONEY ON THE TABLE. And did I Mention → DO NOT LEAVE MONEY ON THE TABLE!!!
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Ok there!... and I meant to Yell. Are your ears buzzing?... GOOD:-) Now at least I know these words will ring in your ears every time you think the thought “oh I don’t need to file taxes”. Now at least you’ll think twice...because now you know you just might have money waiting for you!
P.S. Here a good website that addresses more common tax questions and answers.
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Yeah Darlene that's what I thought too until I did thorough research. And by they way... that's for net earnings of at least $400 per year i.e. after you deduct expenses. That's why it's good to deduct Every Single Deduction the Law Allows in business AND personal situations. That lowers your overall tax liability!-)
Great hub!
Thank You drop by again:)
I MADE 4,800 THIS YEAR CAN I FILE TAXES AND WILL I GET A REFUND
Thanks for visiting Brenda. Without knowing your full financial situation I can't answer that question for you. I'd suggest that you consult with your account or tax professional. Or you can do as I do and use TurboTax which will walk you through everything, guiding you through every deduction possible under tax law. This system will guide you through all steps at No Cost. Then at the end if you like the numbers you see and want to proceed with filing your taxes through TurboTax, you'll have the option to become a Full customer at that time.
Best Wishes for a profitable tax season $-)
Good info, I dont know where I got it that you have to file take if you made a minimum of $5,000
Well Anthony you could've gotten it from anywhere, there's a lot of misinformation floating around out there -- which is why I make sure I do thorough research before publish a thing!
Well this is a deep subject. And it is a matter of fact (though the IRS won't admit this) that the income tax is based on VOLUNTARY compliance, and really is voluntary.
Witholding is also a sham. Witholding is a forced loan from you to the IRS based upon the premise that you WILL owe a tax.
While I am not a tax attorney, I can assure you that for the last 7 years the IRS owed me a refund! I also expect them to owe me a refund this year as well and every year for the rest of my life....SO that is why I voluntarily participate in their voluntary income tax sceme.
And here is the secret, I didn't even realize that I learned this from my parents all my life growing up. You must live your life in a manner in which you are able to AVOID taxes. I guess I learned this and didnt even know it, I naturally live my life in a way in which I am always entitled to a refund! I am not talking hundreds here but thousands per year!
Hats off to you! It's all about getting refunds (or at least lowering tax liability as much as possible) by practicing Strict Money Management and keeping meticulous records and receipts. I can't recall the last time I Didn't get a refund!
Thanks for the information!
Great post - here is a little bit more info and sort of one of my peeves:
Why give the government an interest free loan every year? They aren't going to give you one! Watch your payroll taxes -adjust during the course of the year the amount of deductions you have. If I get back $10 I am happy - If I have to pay $10 I am happy. I know that I brought home more money last year and was able to bank it in savings at least drawing some interest.
For some weird reason people like to get money back at the end of the year - weird - try this - take the money you desperately need now and give it to someone you don't know - make them promise to give it back to you next year... stupid.
Go check out http://www.Fairtax.org - the system where we pay a tax on goods and services only. This should bring back more jobs as employers won't have to incur the cost of going dollar for dollar with payroll taxes - don't even get me started on Social Security (Americas Largest Ponzi Scheme)
For some they will want to file taxes even if they did not make enough to have to. These are usually single moms who are barely scrapping by and having children qualifies them for EIC.
very good hub for coming TAX Time
Thanks for visiting and commenting everyone! Make this tax season work in your favor!
Nice hub!
The only income we have is my husbands Social Security disability which is $850.00 a month. We have five children. Should we file? Would be get anything back? Thanks Jewl
@Nancy Thanks for your comment:)
@Jewl Well it really depends on a lot of different variables as you can see in this hub. And situations may vary. But if you say $850 per month that averages out to a little over 10,000 per year. So you Might qualify for some type of low income credit or maybe even a stimulus check for social security recipients. But I'm not absolutely sure. What I'd suggest is that you plug the numbers into TurboTax and see what it comes up with - see if it's worth filing. This way all guesswork will be eliminated. They offer a free Federal edition for all simple tax situations, yours sounds like it may fall under in this category.
Best Wishes to You and Yours $-)
if my only source of income this year was $4500 from an IRA, do I need to file? I checked out turbotax and it said I will owe the feds 10%, can't give em what I don't have. Do you know of the dollar amount limit that mandates a person must file?
First review all the numbers you input carely and see if you come up with same thing.
Also, Check the first link on this page -1040pdf- and scroll down to page 7 also look at the chart under it. There's a lot of details and variables involved with IRA that makes it a very unique tax situation. From my guess sounds like this tax was possibly a result of an early withdrawal tax.
Here's what the IRS says: "Withdrawals made prior to age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distributions by April 1st of the year after you reach age 70 1/2. These additional taxes are figured... http://www.irs.gov/taxtopics/tc451.html
I'm wondering if we need to claim a portion of our income this year. I am not sure what constitutes as "sub-contractor" - as you mentioned in your article. We have no legal business name, no tax ID#, etc.
My hubby (age 32) does some extra work for some "friends" and they pay him by check monthly. Total income this year was $2540 with a $420 (grand total $2120) worth of deductions. We are filing married/jointly (however I stay at home with 2 kids with no additional income). I am not sure if we need to claim this on this years return. We did not receive a 1099 or a W2 - as I honestly don't believe they (either non profit org or not for profit org) report on this. Also, our overall income this year on his hourly job was about 30K.
What are your suggestions? Are there limits to income that you HAVE to report - or is there just a suggested limit? Is this one of those "babysitting" moments that's not worth reporting based on our tax bracket, etc.
Thanks, in advance!
Well a lot of people haven't received their W2s or 1099s yet, but that doesn't mean it's not coming. And if he earned $2540 and this company took out taxes - then forms should be on the way. If you all don't wanna wait I'd suggest contacting them to find out if they sent it out (or sent it to the right address). Believe me you don't want to file without having ALL your tax forms. This happened to me once and you'll just run into complications and possible late-fee penalties. So check the source to see if they sent it out.
what is the min amount you have to claim taxes
Well Theresa that's what this hub is all about. I'd suggest you take your time and review this hub thoroughly. It would be to your benefit. Situations vary. Thanks for stopping by!
I currently live overseas. And I was working in New Jeresy in 2008 For the months of Jan, Feb, and March. Do I still need to file my taxes if I made 4,700? And how do I file my Federal and State Taxes from overseas. Please Answer Back. THANK YOU SSSSSSSSSOOOOOOOOOOOOOOOOOOOOOOOOO much.
Hi Kim here's some information I found that might help you
The IRS say...
"If you're a U.S. resident or resident alien, generally your Worldwide income generally is subleject to U.S. income tax basically you Worldwide income is subject to U.S. Income tax, ragardless of where you are living (certain exemptions may apply)...http://www.irs.gov/pub/irs-pdf/p54.pdf
Also you can check this guide as well - http://www.irs.gov/pub/irs-pdf/p516.pdf
As far as receiving taxes, people get income via Direct Deposit all over the World. And be advised that the IRS has offices abroad as well; they're Everywhere believe that! If you need contact information to these offices it can be found in that second publication toward the bottom.
Best Wishe$ ~ Hope this helps!
Just got my refund WooHoo!!!-)
It's going to be very interesting to see what happens as more and more states enter periods of financial insolvency. New York for one is about to lay off 8600 state workers. Can massive state tax increases be far behind?
I have also come accross this type of question like how much required for me to file tax file. I have gone through all others artilce on this topic but no where I could find information as you have discussed here. Very great article as well as informative and your guide is very suggestive and accurate. Thanks for this great hub. I think you already being rewarded for your hard work you put here. Congratulation on your success. With Blessing. Money Maker Guy.
Thanks you for your compliment ~ I visited your website and left a comment as well ~ That's a great resource and niche market you got going there!
I've used Turbo Tax before and have been 100% satisfied!
True the government will never come after you to say they have money for you - which is why it's important to remember that if you get an email that looks like the IRS - it is not. They would never email you for your info online - and never to tell you a refund is waiting. This is an annual scam.
Thanks for this info!
Yeah TurboTax has worked great for me too! And Thanks for pointing out that Scam Issue; this is definitely something that people need to Beware of.
Tax season is really no big deal for us because we get a refund, but I think it is definitely a headache to most people, especially in this economic climate. People might have to file an extension to make a payment or go on payment plans. http://www.unclepayday.ca - payday loans online
I registered a company, but I have never used the name for any business and have'nt made any income with the company, should I still file taxes?
Ike if it's just a name and haven't even started doing business with it (and earned no income whatsoever) then there's really nothing to worry as far as I know because there's no income there. Now Whenever you do finally put your business into action, be sure to go back and deduct the cost of the name (if any) as a business start-up expense.
excellent hub, thaks for sharing this information and advice.
I enjoyed the editorial. It is very exciting. Thank you for the information. I will be back.
Good information for everybody to keep in mind. Consumer tax software is good but sometimes you can get the same service online for a lower cost. If you decide to go a tax preparer, look for either an Enrolled Agent or a CPA. Both are licensed and will do your taxes right the first time.
It is very interesting. Thank you for the information. Look forward to reading more from you in the future.
I am cleaning and cooking for a family, they pay me 150.00 each week do I have to pay taxes on this.
Hi Carol this sounds like a part-time salary which qualifies as taxable income to me. I'd check more into this if I were you. Is this your own business - or are you employed by them?
I may receive both W2 and 1099 as an independent contractor, can I file it through online turbo tax? Would you tell me how it works please? is it free? Are there any other softwares that may help? I can't afford to hire a tax consultant. Thanks
my boss said he had my taxes covered when he was paying me cash how do i make sure he pays these
@Yukimo... Yes you can file both W2 and 1099 through TurboTax; I've done this before with no problem. The software walks you through every step of the way and alerts you of every deduction possible. They do offer a completely free federal version and they have paid plans as well (visit link for details). Whichever plan you go with it's always free to get started and you don't pay unless you like the numbers. There are other tax softwares on the market but I like TurboTax the most because it has helped me find the most deductions and they have a great reputation.
@Rob... Sounds shady to me. And if you're not careful it can all come back and bit you in the You Know What! I'd question him about this; it's your right to, just let him know you're concerned about your taxes and like to know how they're handled on your behalf. Do you know if you are considered to be an actual employee, or independent contractor with this company?
Iam 17 i have 1 daughter that is 9 months old i only worked for 2 months can i still claim my taxes?
Hi Jessica being that you have a small child, and from what you've stated here, low income - you may qualify for a tax return. If I were you I'd definitely check for sure.
Hi i earned just over 2200 dollars working a summer job last summer and just got my w-2s today. I was wondering if it would be a good decision and if I could posibbly get a return at all if I filed.
Hello Daveo If this is really all the income you've earned, it is very possible to get a refund from all the taxes that may have been deducted from your check.
ive earned 7546.78 in wages am head of house hold with 2 dependants but only 38.75 was take out for fedral income tax withheld do i still qualify for these tax credits
Hi Tawania sounds like perhaps you received partial earned income credit (EIC) throughout the year - which lowered the amount of taxes taken from your check. This could be the case amongst other things. Either way, I'd recommend checking about EIC. You might have some money coming for that. Also you might want to check about Child Tax Credit (all of this is assuming your dependents are qualifying children). Check with your account/tax professional about this - or plug the numbers into TurboTax or other reliable software to determine for sure.
If I am self employed, and I pay an independent contractor to do some work for me, do I have to claim that expense on my taxes?
According to the IRS if you paid an independent contractor (or other non-employee) $600 or more during the year, you need to file Form 1099-MISC. You also need to provide a copy to the contractor.
what is the educational plan that allows one to be enrolled in scholl and receive 4000 back on taxes. I heard about this from someone. do you have to be enrolled full time or part time and be an undergraduate or can u be in a grad program? thks
Hello Tan sounds like you're referring to the Lifetime Learning Credit. To my understanding it IS open to undergraduate or grad. Average credit is up to $2000, which can increase up to $4000 if you're a student in the Midwester disaster area.
Pretty good article. Thanks for this.
Hi my name is Tommy ive made over 42000.00 this year paid no taxes but ive got nearly 35000.00 in tax write off thnxs to my 1099 status what do u think is uncle sam gonna use vasoline or nutthing i think itz gonna hurt.
Hey Tommy if you have reported legitimate deductions with your 1099 status, there shouldn't be any vasoline or pain involved lol...
You will owe self employment tax on your earned income (income minus deductions), but as far as all your deductions you should have no issues there if they are all legit. You have every right to deduct all business related expenses.
Hey I did not earn any money for 2009 should i file with the irs to tell them i made nothing?
Generally speaking, you're not required to file a tax return if you've made no income. But beware, there are lot of other variables with taxes that you need to consider, and you may be overlooking such as...
Prior years taxes
Educational credits
Personal deductions
Business deductions (even if you have a very small business that didn't make a profit yet).
These are just a few reasons that you might want to file a tax return even if it seems that it's unnecessary. Remember: BILLIONS Of DOLLARS go unclaimed every year. Be darn sure that you're not leaving ANY money on the table!
(And of course there could be a chance that you owe some taxes, but hey we'll keep things on the bright side:)
This following link should help you better determine if you should file a tax return: http://www.irs.gov/individuals/article/0,,id=96623
I have a question: my husband and I made 10,000 in 1099 so it never got social security tax taken out. Is there away around this since I didnt make hardly anything last year.
Hi Brenda, Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. So if you end up owing this tax season, that self-employment tax should cover it.
I'm a full-time student doing some babysitting for a family. They pay me about $140/week, but sometimes it's been cash and sometimes by check...and most times it included incidental costs returned to me for money I spent on their kids. My hours have also varied from week to week. I haven't really been keeping track of how much I made through the year. What is my best approach with filing? I don't want to get in trouble for not claiming, but I'm not sure what to put for an amount. Any help would be appreciated! Thanks!
Were you an employee or self-employed contractor providing babysitting services? If Employee, you should have received Form W2 stating your earnings; If Self-employed contractor, you should have received a Form 1099 stating your earnings - being that you made over $600. But either way, if you were self-employed you are responsible for keeping records to show how much income you received and how many expenses you had. This is something that you should take a serious look at, especially if you are planning on continuing to provide services.
My husband(age 25) only made about $3000 in 2008 because he was working at a friends store in Florida and received cash. Our resident state is California and he was only in Florida for 2 months. For personal reasons, we decided to file separately so I had filed my taxes filing married filing separately and claimed our son. Well, my husband never filed and now I am doing an Amended tax return. He was never considered employee by his friend and does not have 1099 or w-2. Is it ok to file without any supporting documents? I understand we need to pay the taxes he owes for $3000 but I am afraid that there could be an audit. There is no way we can show supporting documents. The only forms we used were Schedule C and Schedule SE. Please advise! Thanks in advance!!
Yes it is ok to report amounts earned, even if a 1099 or W2 was not received. Being that your husband wasn't considered employed, this would likely fall under self-employment "independent contractor" income (which may put you in a higher tax bracket and subject to self-employment tax). I don't think this would trigger an audit, being that you're going through the trouble of reporting this additional income that many people wouldn't even bother amending. (However, no one knows who the Government will decide to audit for whatever reason.) I'd recommend that you use your best judgement and get additional guidance from the person or source where you originally filed your taxes.
This is one of the best posts that I’ve ever seen; you may include some more ideas in the same theme. I’m still waiting for some interesting thoughts from your side in your next post.
Nice hub! I will bookmarked this page.
Hi! I'm an independent contractor and I made a little over 2000 dollars - someone told me that since I didn't make over 6000 i didn't need to file taxes. Is that true? or do I need to file a 1099 next year?
ONCE YOU'VE REACH THE AGE OF 18 YOU MUST FILE ALL INCOME! YOU WILL MOST LIKELY GET MONEY BACK!
Thanks for visiting everyone..
@Frankie, that somebody told you wrong. And I'm guessing it was the person who contracted you to do work for them. When you are contracted to do work, you should receive a 1099 from every person or business that paid you $600 or more during that tax year.
Also refer to Note 2 above
I am not sure about taxes issues you are talking about. I just now it is very high rather than other countries amount of taxes.
Hi Im a retail rep And every week we get 400 Dollars in our Hand , I Wanted to know Can I Still File taxes.
Ah I remember the days when I used to make so little money that I didn't have to file taxes. Those days are long gone. Remember to do your best to fill out your tax returns correctly. You don't want to be audited on income from your first job.
@ Austin Cosmetic -- yes U.S. taxes are rising, which is why it's important for U.S. citizens to become more knowledgeable about deductions & tax credits that they may be able to take advantage of.
@Keyonna -- Yes that's $1600 per month cash. You are definitely suppose to report that on your taxes. Don't know a legit retail store/operation that would pay this amount out to workers every week cash. Are you an employee or independent contractor? If employee, you should be issued a W2 for the tax year; if contractor a 1099. This would make it easier for you to file. If not, you'll need to keep your own records and file.
@Mark - Yep you definitely don't want an audit!
Thanks for sharing interesting things with all of us. I like way of your thought process.
Acai Berry
I was just hired to work for a small trucking co operation dispatching owner operators. The boss insists I can be considered Ind. Cont. and he will give me 1099. I am concerned because I will have to pay MORE taxes as a result of his classification of me. He acts like it is no big deal. He says the truckers are all 1099's like me, but they own their trucks (business) and can claim expenses and I don't!
hello! just quick question. im 24 and married w/two kids and im starting my own daycare in my home. i have one infant i'll be watching and my husband works out of home. i'll be making 5,912 dollars a year off that one kid, do i need to file??? or will i owe money? im just looking to see so i know what i need to do?! thank u for ur time!:)
Me and my wife are in odds over this. I make over 50,000 dollars with my first job. I know I have to file taxes for that. I have a part time job where I will probably make between 3,000 and 4,000 on the year. Do I have to report the earnings for my part time job?
@ linda2463 - Yes you are right. You will have to pay your regular taxes, plus you will be subject to self-employment tax as well. If he's going to classify you as self-employed, then you might as well be, and take all the deductions & tax breaks that this classification has to offer. Because there is no doubt that the IRS will view you in this manner - and hold you responsible.
If you don't want to be self-employed, then maybe you should find another place of employment - or have a serious talk with him.
@tabi - Yes that is a substantial amount of earnings that you should definitely file. Now whether you would owe or not, I can't say for sure.
@Ken - Yes and do and should receive a W2.
i never paid taxes i'm in my 50's worked for the same lady cooking and cleaning and doing errands or what ever she needed since i was 22 how do i start paying taxes how much trouble am i in.i was paid 200 to 400 a week.
Well sweetiepie, if you've gone that long without paying, you're definitely one of the lucky ones. The IRS may or may not ever find out. But it you do decide to start paying taxes after all these years, you will definitely need to consult with the services of a Tax Debt Specialist. http://hubpages.com/hub/irs-tax-debt-relief-now
Before I ask my question, I want to thank you for all of your valuable information. I have learned so much just by reading and following the entries. You're great!
My question is about filing as a full time grad-student: I received about $10,000 a semester in loans. Am I supposed to file on the loans? And how do I file if I have been self-employed for a year while I was in school?
Hi Brelala, thank for visiting and your kind comments:)
Assuming the loans that you received were solely used for your education, you may not have to pay taxes on them at all. In fact, you may be able to claim a tax deduction on those loans because in essence it was an 'expense' for you.
Also , you may also qualify for hefty educational credit that could bring you THOUSANDS... So definitely check into this!
There are several types of student loans from different sources and some may or may not qualify for all or certain tax breaks.
For more info check this out:
Five Ways to Offset Education Costs
http://www.irs.gov/newsroom/article/0,,id=107670,0
Now as far as you self employment situation is concerned, if you actually earned (meaning after business expenses) $400 or more, you'd pay self-employment tax on those net earnings. The self-employment tax is figured on Schedule SE (Form 1040).
More details here: http://www.irs.gov/individuals/students/article/0,
Hope this helps!
I earn cash performing personal services. In my business I do not have "books"or receipts. How much do I have to make to file taxes and how do I prove my earnings?
Well if you're operating a business, then every real business should has some type of accounting or bookkeeping method (regardless of how large or small it is). So, this is something that you really need to start keeping track of - whether you do it yourself or hire an accountant.
Bottom line is that you need to document all income and any expenses you may incur in your business. Even if you're getting paid in cash, you can ask the payee to write you a receipt - or you can keep a receipt book with you and write the receipt. It's ultimately your responsibility as a business owner to keep track. Then if you need to file taxes you can confidently document everything.
I advise you to read my 'List of Tax Deductions business' hub (There's a link to it on this page) which will further address your business tax questions. Best Wi$hes to you.
hi recive only social services benfits .,, its aronud $7000. ... do i have to file ...( i never file;d from last 5 years coz thats all income i get )
Generally, if social security income is your only income you do not have to file.
BUT... There was a economic stimulus act of 2008 that you might be interested in. It is for people who normally did not have to file, and would pay them up to $600 stimulus check I believe. Sounds like you qualified... Did you get yours? If it matters to you, you might want to backtrack and file for this if it's still available. Consult your account/tax professional or professional tax software service for further assistance.
Nice, I'm impressed you brought up the stimulus. You've actually answered most of the questions I've always wondered about with taxes. However, My situation is this. My job can sometimes be seasonal. Forcing a delema in the winter. If a get another job and work comes up in the winter with the first job then one job suffers. My answer is to do side work. So being optimistic I may be blinded to think that I don't have to claim taxes on any side job that I only earn under $600. Although all jobs combined in the same year do total over $600.
First off, I want to show 'preciation for the dedication and genuine care that you've shown for the past two years over this article, answering questions, and guiding people in something they shouldn't go into blindedly.. you deserve thumbs up for that!
Secondly.. being one of those blind people, so to speak, I have a pretty simple question.
I have had previous jobs since late 08, and early 09, each for a month or so working at places such as Taco Bell, McDonalds, and IHOP-- but none were held long enough for me to feel comfortable to file taxes on.
As somebody who's never filed taxes before, and am completely illiterate to such convos, [lol], I'm kind of confused on what the process would be, and btw, I've NEVER received a w2! Probably due to my moving around so much.. but anyways..
So, I just recently finished school and decided to leave the food industry alone, and got into a comfortable field, which is salary based. I've only been doing this since October-- but will remain doing this 'til-- well, til forver hopefully.
But my actual question would be, since I technically started at the end of the year, am I able to claim up til 'filing time', or just for the remainder of this year? I doubt three months of working would be anything worth filing for.. but like I said, I'm pretty dumb when it comes to this!
& also, to bother you further.. what should I do with the previous income, although very irrelevant, ..should I forget about it, or attempt to file with them as well?
I know-- i'm a blonde..I apologize, but i'd appreciate any bit of help I could get!!
thanx again, mister master!
@coolbeans - Is the "side job" really a side job i.e. are you actually employed by someone to do these jobs in your down time -- or is it a situation where you're finding work independently and contracting your services out?
If you're actually employed to do it, you'll get a W2 for filing.
If you're offering your services independently, then it sounds like you have a side business going and don't realize it. (If this is the case, then I advise you to visit my business tax hub for further guidance (link on page).
@Pash - Haha hey Pash you made me laugh:) and thank you for your kind words!
About you tax situation...being that you're currently employed (regardless of how many months out the year) you should be issued a W2 from your current employer for you to file your taxes. Everything should be pretty straight forward from there. (Your income generated in 2010 would be filed on your 2011 tax return).
Now as far as your previous jobs, more than likely they did send you a W2 and perhaps you were just moving around too much for them to catch you lol... But perhaps you can make a few phone calls and check with your former employers about this, especially being that they're large fast food chains -- they usually keep good records of these things and sometimes have a dedicated phone line for you to request/get info on previous tax info. I'd say at least check into it. As insignificant as it may seem, you may have qualified for low income credits or other credits/tax breaks over those years. You just might be leaving a good chunk of money on the table by not filing. I don't know all your whole details, but low income plus struggling student usually equals money! If nothing else I'd check into it if I were you.
Thanks for the great info...
taxes are coming. Thanks for looking!
Hey there...I studied in the US in 2005 (I got a scholarship from my university) and I worked on campus for the university earning no more than 600 bucks net...I never filed though...am I at risk or did I just leave money which I could have got in refund?
@Dan, well I don't believe you're really "at risk" if that's all you made - net. And there's no real way to know if you left money on the table recently or in the past. But going forward, I would strongly advise you to think twice about not filing your taxes because A: If you continue not to file, then it could really catch up with you and become a major problem. And B: If you are owed tax monies, you'll likely never know it if you don't file.
Hmm, informative hub, but didn't answer a question I've had lying around. Filing for taxes in 2007, I made more than $10,000 and I got several hundreds of dollars back, not including Bush sending everyone a little something extra.
In 2008, I didn't get quite as much (as my dad was hit hard by the IRS; since I lived under his roof I offered myself to be claimed, didn't know that was possible then). But the amount was still pretty significant; I earned at least half of my year's worth of paychecks.
Then, filing for taxes for 2009, I made less than half the amount in the previous year and I filed for my taxes and came to the amount of a lousy $14. Months later, I got a check from the IRS saying I did my taxes wrong and that they owed me absolutely nothing.
Why in the world am I getting more money from the IRS when I earn more? I'm mostly jobless this year and I'm afraid the IRS is going to ask me for money this time!
@Marcus - Probably due to the fact that there are many tax laws/tax breaks that favor people who make higher income, particularly the rich.
People who earn lower income usually have to scrape and struggle for everything and work thrice as hard to get anything.
You have now experienced both sides of the spectrum.
Many States Tax Working-Poor Families Deeper Into Poverty http://www.cbpp.org/cms/index.cfm?fa=view&id=789
The only busines I do is on Ebay. That's my only income. It was a part time thing to make extra cash. I made about $5000 on Ebay but thats the gross not the money I pocketed. I am not planning not to file for 2010 in 2011. Will I be in trouble? Do I have to report it? I know it's required to report it but how can the IRS find out and will they?
I made $36,000 in total off Ebay. How much money do I owe the IRS? I have about $10 grand left. The rest, I just blew it.
@Michael, well...put it like this... if you made $5000 off Ebay, then Ebay (being the great established company that they are) will likely report those earnings to the IRS. So whether you file or not, yes, there is a chance the government could find out about it sooner or later.
@Kretchen, I see you're Ebay money maker too haha this is great! Congrats to you and Michael!! I can't say exactly how much you or anyone else owes the government, there's just too many variables involved. Different people have different tax situations. $36,000 is a substantial amount, especially for a self-employment situation. If you don't have an accountant or at well-organized way of managing your money & taxes, then now is definitely the time to start.
Hello multimastery. How do I become one of your followers? One more question. Ok, so recently they sign a bill in 2008 and that requires Paypal to report your earnings to the IRS only if you have made $20,000 in total gross or 200 transactions. The effect begins for the 2011 year and will be reported in 2012. Now I am sure you are aware of this right? Now if I was to make $19,000 and less than 200 transactions and stop, that means Paypal will not report me to the IRS and I don't report, will I be okay? Because you know over the past years nobody on EBAY/PAYPAL reported their earnings/income and they were fine. I know this isn't really a good idea because the IRS always find out (maybe they aer listening to us right now) BUT I WOULD LOVE TO HEAR YOUR OPINION ON IT. THANK YOU AND HAVE A SAFE AND HAPPY HOLIDAY AND NEW YEAR. *PS GO GREENBAY PACKERS.
Hey there, I just got my first job back on November 5th. I have made 2,200 for this year. Will I be able to file taxes and get a return? Or is all my taxes just poof gone?
I am 17 years old and have a 2year old son and i was wondering if i can file my taxes if i been working for 3 1/2 months? i also wonder how old do you have to be to file for taxes
I ran across your page while surfing the web & couldn't stop reading. I just set-up an account on here & have bookmarked the page. Very interesting, thank you. I have two questions for you myself. My husband & I are your typical middle-class family w/ the wishes for a higher income. Our oldest daughter became legally blind last year (obscene amounts of medical debit)and was qualified for SSI this year. Do I have to include her SSI in our tax filing? We're applying the SSI towards medical bills currently. Also, how long do I have to file previous years taxes to still receive our refund? I have 2008 taxes & I think I have until April 15 2011, but am not positive.
I to have been blind the past years about taxes due to the fact that i was still in high school and the couple of jobs i worked my compensation was little to nothing so i never filed... but now im 22 with two small children and have been working a steady job for the past six months, i would say i made ah little over 3,000, i know i wont get much back from that but i do think that i qualify for the EIC ...althought you have been very helpful and answered most of my questions i still have a few concerns about my situation. about two years ago i was in school but i didnt finish due to personal reasons .the recruiter for that particular school talked me into a federal student loan instead of a pale grant now i owe them ah little over 7,000 im a single mother and i cant afford to pay them back for a certificate that i never recived , due to non payment my credit score was severly damaged ... they havent garnished any of my paychecks but im afraid that they will snach my tax returns. i have filled out a forbarence but im still a little weary can they still take it, or will they let me receive it and back off if i pay off some of my debt??????
@Michael, yes PayPal may not report it if it's under 20K, but if you're earning that much in self-employment it's probably in your best interest to get real serious about managing your business taxes at this point. This means keeping proper books and taking every deduction allowed by law. PayPal is a very trackable source and who knows just how close the IRS will start monitoring it. Tax laws change constantly.
But one thing's for sure...
Regardless as to whether a source reports your earnings, business owners are still responsible for keeping proper records. Whether PayPal reports your earnings or not the IRS will probably find out (especially for large "red flag" amounts)
PayPal says: "We encourage all of you to consult with your tax advisor when this law takes effect to ensure that you are complying with federal tax laws."
Visit my business hub to learn more about business taxes & deductions: http://hubpages.com/hub/List-of-Tax-Deductions--Se
Hi Matt Congrats on your first job!!! And welcome to the World of Taxes. Jobs are supposed to issue you a W2 at tax time. This is a record of your earnings and is what you will use to file your taxes. I doubt they'll eat up your money for the amount you earned. If anything, you might qualify for earned income credit or other credits & job-related deductions. Keep learning as much as you can about taxes because it's a fact of life. Consult with an accountant or tax professional.
I am a student in college and I qualify for the Hope tax credit, but I did not make enough to file taxes. I made less than 500 dollars and taxes were not taken out of my check. I also thought that I could file under my mom but she does not file taxes either because she is disabled. What should I do so that I can get my Hope tax credit?
@eduardo - if you had any money withheld from your check, then I'd file if I were you. Either you can file - or if you're a dependent then your parents or guardian should be able to file on your behalf.
@Kellie - hello and welcome to hubpages! According to socialsecurity.gov "Supplemental Security Income (SSI) payments are not subject to Federal taxes However, if you also receive Social Security benefits, they may be subject to income taxes." I'd advise you to definitely consult with your tax professional on this, SSI situations can become very detailed. And yes you have the timespan right for filing previous years taxes; that's exactly how I understand it.
i hope i can file my first income tax this year i earned about 7000 something..i need it to take a vecation in philippines..hehehe..please help me!!!
Thanks for all the comments!... If you have submitted a comment and I haven't responded yet, please don't get offended. This hub currently gets close to 1400 visitors per day and there's no way I can respond to them all. Thanks for understanding and I hope you learned a thing or two from this hub:)
Great Hub! answered a lot of my questions, voted up and useful.
I had a job in early January of 2010 in which I only made about 1000 dollars. Do I need to wait on that w-2 to file my taxes? I made almost all my income off my current job that started January 26, 2010.
I work a part time job on top of my regualar full time job. I got my w-2s yesterday and saw that they only took about $8 out of my part time checks for the whole year of income (the total income being around $3000 for that job). I'm not sure why this happened as I have always claimed "0" on my w-4s so I can insure to get a refund. Because of this, my tax return was cut in half. Since I made so little from the job, can I just not claim the income?
Thanks for visiting...
@lovedoneby3, if you qualify for a forbearance, then they may make other payments arrangements with you. However, yes, it is possible that the government could garnish your taxes for money owed to them. Nolo.com speaks more on this: http://www.nolo.com/legal-encyclopedia/article-298
@ Brittney2010, the Hope credit is an educational credit designed to offset the amount of income tax you owe. So long story short, if you don't owe any taxes then likely you won't get anything from this. But if you do owe taxes this can be a real lifesaver!
Thank you for such an informative Hub. Great information!
@CHAILE10: I'd wait to receive them if I were you. Also, you can try contacting them to see if you can get them earlier.
@lyzny713: If you receive tax papers, it's best to just go ahead and file. Believe me, you can avoid a lot of problems in the longrun by staying on top of your taxes.
I am an independent contractor as a part-time personal trainer throughout the year. I just got my 1099 form and I made 7 k for the year training part-time. I am single and 23 years old. How much would I have to pay back in taxes. I also have an excel spreadsheet that counts how many times I went to and from work and I believe I can deduct .50 cents a mile. It comes out to around $2,000.00 I can deduct. does this help me much?
I am getting a new job that says I will get a 1099 at the end of the year. How do I prepare for that? What should I ask the employer?
if you make 6000 or less a year can you file
if someone is 18, single and made only $1572 from Oct to end of Dec, do they have to file? state and fed taxes were taken out. they were claiming single with 1 exemption.
Ok.... I have not paid taxes in 2005-2009 due to the fact that I did not earn enough to have to file. According to what I have read above, that may have been a mistake. this year I have earned well above what I earned in the last five years combined, and on top of that, I am self-employed, and am paid via 1099 via several clients. How do I obtain my unclaimed tax benefits from the previous years, and do I need to do this BEFORE filing for 2010??? HELP!!
okok i hear you!! thanks...i'll file :)
@ dee515: Yes every deduction helps. Do your best to claim every deduction you can think of related to your personal training business. Visit my list of tax deductions for business for more or deductions (link on page). When it's all said and done, you may be subject to self-employment tax on any business income earned. So again, do your best to deduct everything possible!
@As: Keep all your receipts and stay organized with your income and expenses! And you're not technically getting a job, you're really entering a self-employment position (reread what I've written about this scenario above). And that person you're calling you're employer, they're not your employer. You will be self-employed and responsible for everything. So just make sure your they give you your 1099s. I was in these type of situations for years and didn't know it until I wised up.
@bobby: Yes you can.
@mkladymich: If taxes were taken out and they received tax documents, then filing would be wise.
@Ryan: Well.. I can't say if you have tax liabilities or tax benefits due from the years 2005-2009. I'm sure a lot went on in those years, and if you really think it's worth backtracking, you should definitely consult an accountant or tax professional who specializes in previous years taxes (especially if you was from self-employment income). You should also be able to get help with your current years taxes in the process. P.S. Don't deal with a general accountant if they don't specialize in business taxes (if this is in fact your situation).
My son is a 17 years old high school student and made $2800 last year with no taxes withheld. I've heard that if you make less than $5,000, regardless of whether you had taxes withheld or not, you do not need to file. Based on the 1040ez, he owes $279. Is this "rule" true or should he go ahead and pay? Thank you!
I am employed full time however I also am a part time referee for a social club and hired as an Independent Contractor - I was sent a 1099 but only made 2200 do I still have to report this?
Well here is my question: I have been unable to find work for over 2 years, after graduating from college. I have done a conference that paid 500, a web program that I earned about 50 dollars with, and as a vendor I have made 20 dollars for 2010. Now I also received a 1099-C for 938.41. Do I have to file due to the 1099 form? The person I live with was going to claim myself and my child as a dependent, but I am nervous with not reporting the 1099-C.(I thought that the 1099-c was detailing the Debt I had paid off, but now understand that after doing a lot of reading it is not) He called an acct. and they said I do not have to file since he would claim myself and it would all equal out to 0. If you could can you please explain this?
Now I read that the 1099-c it is the debt that was paid off... I am so confused.
My job requires me to have a phone of some sort (land line or cell phone) Can I claim my cell phone payments?
If my daughter made less than $3000 for her work study job, no taxes were taken out by the school, and I claim her tuition credit and her as a dependent on my taxes, does she have to file since she owes nothing and get nothing back?
I run a small business and have just recently started having others come in to help me. Do I consider them employees or self-contractors? Which is better and easier for me as a business owner? Also, right now, I pay them less than $600...(2010 taxes), but I might be higher than that next year(2011 taxes). What should I do for this year and for next? Is it better to claim their income as an expense of mine? Thanks!
My employer does not withhold taxes or send 1099s or W4s; won't it send a red flag to the IRS if I report income from this company?
I've been an independent contractor for the past 5 years in interior design, but due to the economy, made nothing in 2010. I'm assuming that I should still file as self-employed? Just wanted to double-check this. I've been filing using Turbo Tax home/business.
Thank you for your help!
@loabjag: Tax laws change all the time. It's probably best for your son to go ahead and file, especially if it's showing he owes (and I don't know how you came up with those final numbers). Perhaps your account? If so it's better safe than sorry later on.
@J.C.: Yes, you are supposed to report that. Ignore at your own risk!
@Heather: 1099c is a Cancellation of Debt form. So evidentally some Federal agency or other issued those papers to you because they forgave some debts you had. You are supposed to report a record of this. More details in this PDF: http://www.irs.gov/pub/irs-pdf/f1099c.pdf
@Steve: If your job required that phone as a necessary expense (and you're sure you were in fact an employee and not an independent contractor), then you should be able to deduct it! (check Schedule A) or they should eat the expense, one of the 2.
@Sherrie: If it was used for tuition and books, then it is very possible that it is tax-free. Be sure to check with your accountant or tax professional on this.
@Jack: Most businesses find it easier to have workers be independent contractors rather than employees, for the simple fact that the workers would be responsible for their own taxes, health insurance and the whole nine. This is why so many businesses are operating like this these days. But before you decide how to structure your business, you should do thorough research about what is best for you and most customary in your industry.
@Anonymous: Your company is shady and operating under the table LOL... And yes most likely it will send a red flag. It's your call! It's not your fault they're not operating legit. I know you have to make money but I'd advise you to start seriously looking for another position - unless they someone get their act together. Companies like that are operating on shaky ground and their days may be numbered.
@Lilo: I'm not sure if you're saying you didn't make any money from your biz in 2010 - or you didn't make any money whatsoever in 2010 so it's hard to say. But one things for sure is that it's not uncommon for a business to file a loss, especially if you had business-related expenses.
Ok, so I've read just about all of the comments on this hub and THINK I understand...somewhat...but just to make sure...I just recently began instructing various fitness classes around town. I rent out different venues and pay them in cash after class. I also collect cash from the participants as their class fee. Since I will not be receiving any 1099 or W-2 because I am a "freelancer" what's the best way to handle this? I plan on keeping my own "books" and logging all cash coming in and going out but will this be sufficient without any formal paper trail? Should I start paying the venues by check or requesting / writing receipts? Also, what is a fair amount to set aside for taxes at the end of the year so I'm not scrounging? 25%? Thanks again for your help. I'm mostly like everyone else and completely illiterate when it comes to taxes and laws.
I made $2,400 in 2010. I am married and would be filling jointly, both husband and I are under 65. When it says "then file a return if your gross income is $18,700" Is that just MY gross income or both my husband and I?
thanks!
Hi! So glad I found this. I bought my business license in May and finally had merchandise in December so I operated at a loss of about $1500. I worked and received W-2 forms, too, and will get a better credit if I don't file my business. Do I need to? Thanks :)
@Movinmomma: Yes I definitely feel that following your second thought "start paying the venues by check or requesting / writing receipts" would be the best most reliable and verified method. And instead of paying taxes yearly, perhaps it would be more suitable for your to check into paying quarterly.
@Mele: That's married filing jointly (not married filing separately) so it's referring to both incomes combined.
@Tatrina: Not really clear on what you mean by "better credit" but I will say that in many cases where one is both employed and self-employed - you could file your business loss and deductions along with your personal taxes which may lower your OVERALL tax liability. Definitely check into this.
DarleneMarie 3 years ago
Valuable information Multi - I thought as a contractor, you have to make more than $600 per year to claim it.