I have a part-time job which I file tax for, but do I have to include the $500 from the freelance job with it, separate, or not at all? If so, how much should I keep out? I say "keep out" because I will be paid with a personal check.
United States - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You include it on the same 1040 form. You'll include schedules C and SE for the freelance job. Tax will be around $71 for self employment tax, plus whatever your income tax is - figure $150 and you'll probably be OK for federal, plus state and local if you live someplace that has them.
2 :
You probably don't have to make any estimated payments if the entire amount from self-employment is just $500. Unless you have more than $1000 due with your return there is no penalty. There is no reason to give the government an interest free loan. Judy is correct that it goes on a schedule C and if the net (income less expenses) on this schedule is more than $400 then you must file a schedule SE. Hope this helps.
3 :
Unless you have some expenses on the $ 500, you will need to pay 15.3% self-employment tax. However, if you can find expenses such as auto mileage, supplies, etc., you can reduce the taxable amount and if it is under $400 you do not have to pay self-employment tax. If you cannot reduce it below $400, then you will need to file a Schedule C and a Schedule SE. Go to www.irs.gov and take a look at these schedules and the instructions for them. I don't know what you mean by "keep out" but you need to have up to $ 76.50 available if you make a net amount of $400 or more after expenses. You get no reduction for exemptions or dependents on the self employment tax. You will also owe income tax on it at whatever your tax rate is.
Read more discussions :
- What is a reasonable pay for a freelance journalis...
- How can I get a freelance job at home
- How can a designer get a freelance job
- How can I find a graphic design freelance job
- How can I keep my freelance job from suffering dur...
- What is a job that can be done freelance where you...
- How do I bid on a job freelance job proposal
- How can I get a good freelance programming job lik...
