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American Taxes for Job and IM

Discussion in 'Business & Tax Advice' started by brainstorm1, Mar 3, 2012.

  1. brainstorm1

    brainstorm1 Jr. VIP Jr. VIP Premium Member

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    Hi guys, I had a quick question for you.

    I've been reading on the I.R.S. website to figure out how much I need to pay in taxes for IM work. Specifically, I want to know what kinds of forms I would need to file in my particular situation.

    I'm still in school (and live with parents who claim me as dependent), but I do have a job. It is wage labor, but I believe I am getting some taxes deducted from it. Then, I have my IM stuff which is not yet bringing me THAT much, but at some time it might start becoming high enough that I'll need to pay taxes.

    My questions are:

    1) What amount can I earn with it still being considered a hobby?
    2) If I have a paycheck and IM do I need to pay taxes once for both of those?
    3) If I put almost ALL the money I earn from IM back into building sites and other services, can I claim that as expenditure against revenue or is that only if I file for a sole-proprietorship ?

    Thanks for the help guys
     
  2. LakeForest

    LakeForest Supreme Member

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    I'd seriously discuss tax issues with your bank directly, your questions are good ones.

    It's good to get an EIN so you don't have to post your SSN around.