Anonymous asked in Business & FinanceTaxesUnited States · 8 months ago

TAXES: How do i report my self employed income of less then $400 to IRS?

I have a YouTube channel. I make almost nothing off of it. It s considered self employment. I m told i have to report ALL income to the IRS. But Google wont send me a 1099 unless i make over $600. I only made about $360 According to the IRS i m not required to pay taxes on such a small amount, Or even the self employment tax. But i m still required to report the income. How do i do this? What form do i use? I don t have a W2 or 1099. All i have are bank statements. I m so confused.

9 Answers

  • 8 months ago

    You don't need a 1099 to report any self-employment income. It all goes on the top line of Schedule C whether or not you have a 1099 covering it.

  • 8 months ago

    " I only made about $360 According to the IRS i m not required to pay taxes on such a small amount, Or even the self employment tax." - Only if that is your only income for the entire year. If you have other income, then incorrect.

    You use form 1040 and your records.

  • Anonymous
    8 months ago

    If you do not have to file a Form 1040 for some other reason—for example, if you have wages below the threshold—then you don’t have to report self employed income of < $400 at all.

    If you have to file a 1040, then you have to report the $360 on line 1 of Schedule C even if you don’t have a 1099.

  • Bort
    Lv 6
    8 months ago

    If you report income and don't have proof of it you're only going to cause yourself a headache and major hassle. They will hassle you for the proof and if you don't prove it they might decide to press charges. That's why it's best to not report it. Leave it completely out of your taxes.

    There's obviously some kind of digital media law that pertains to this or youtube would have to send you a statement proving your income. That's probably where their $600 thing is coming from. That $600 stuff most likely isn't just youtube policy it's most likely some sort of federal tax law. If they don't have to send you a document, you don't have to report it.

    So don't report it and save yourself a nightmare of crap you'll go through being questioned by the IRS. That's a situation you surely want to avoid. Do not report it.

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  • 8 months ago

    You do not need a 1099 in order to report it and you are required to report ALL income that is not specifically exempted but you will not owe self-employment tax.

    If it is a business then you report it on Schedule C. If it is more of a hobby that you make very little money at, you report it on your 1040 as "other income." As long as it is under $400, the IRS is probably not going to care which form you put it on because the effect is the same, it will be added to your taxable income either way.

    There are many things considered in determining whether you have a business or hobby. One is intent to make a profit. If you are doing it for fun and never plan to make a profit, it is probably a hobby so there is no need to do a Schedule C.

  • 8 months ago

    You use Form 1040 and either Schedule C or Schedule Schedule C-EZ. Just put down the amount as accurately as you can and don't worry about it to much. They usually don't check carefully when it's a small enough amount that there is no 1099.

  • Judy
    Lv 7
    8 months ago

    If the $360 is ALL of your income for the year, and you don't file for some other reason, no you are not required to report that. But if you have some reason to file, like other income, you'd put it on schedule C.

  • Anonymous
    8 months ago

    If you are required to file a tax return because you have another job or other sources of income, then yes, you file a tax return.

    Your tax return needs to be correct.

    You'll file a 1040 schedule C (or probably C-EZ) and a 1040 Schedule SE in addition to your other tax forms.   It's correct that you won't actually owe any self-employment tax on self-employment income of $360.    But the $360 will be added to your other income on your regular 1040 and will be subject to regular income tax.

    If you have no other income or aren't required to file a tax return, it is what it is. 

    I hope this makes sense!

  • Anonymous
    8 months ago

    There are TWO taxes.  One is income tax, the other is self-employment tax.  The SE tax is the one you don't pay. 

    To file you will use a 1040, schedule C, but not schedule SE. 

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