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Moises · 10-03-2012, 01:10 AM

Hello,
I make around $420 a month through some work on social media (Twitter, Youtube, etc.)
I'm confused because many sources say that if you are a self-employed, the minimum yearly income to file taxes would be $400 (Any age), but if you are a teen classified as a dependent, the minimum y/income would be $5700. Now my question is: Which one am I included in?
Assuming I did have to pay taxes, how would I go on about that? What would be my first steps?

Haunter · 10-03-2012, 01:18 AM

When I was 14 I didn't have to pay taxes. I would venture to guess that you shouldn't have to either. But maybe things have changed, or I just flew under the radar or something. I dunno. But I'm pretty sure you don't have to pay taxes until you're a legal adult.

Judy · 10-03-2012, 01:18 AM

Those are two separate taxes, although they're filed together. At $400 or more, you owe self employment tax. At $5950 this year, you would also owe income tax.

You'll file form 1040, schedule C or more likely C-EZ, and schedule SE.

The above is for federal. Depending on where you live, you very possibly owe state and maybe local tax.

the kid · 10-03-2012, 01:18 AM

You are reading two different things.

You must file at $400 for self employment income. You won't owe federal taxes (or likely state) below $5700. But you WILL owe self employment tax.

You file with a 1040, and schedules C and SE for yoru self employment income.

Cathi K · 10-03-2012, 01:18 AM

They are both right. You did not read them thorough enough. $400 is when you start reporting for payroll taxes - social security and medicare. The other is when federal taxes kick in.

tro · 10-03-2012, 01:18 AM

there are actually two taxes involved with this type of operation
you are conducting a business and will report on Sch C if that 'net' amount(income less business expenses) is $400 or more you will calculate your self employment tax on sch SE, which is approx 13.3% of the sch C 'net'
self employment tax has to be paid and if you have worked this early enough during the year would have prepaid each quarter what you anticipate you would owe on 1040ES(April, June, Sept and Jan)
however, depending on the amount of the Sch C 'net' whether you will actually owe income tax
you are exempt up to $5950 of this kind of income but the se tax has to be paid
you can find forms at http://www.irs.go and also publication 17 which should help you