1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Do I have to file taxes for this?

Discussion in 'Business & Tax Advice' started by Toocoo82, Apr 4, 2012.

  1. Toocoo82

    Toocoo82 Regular Member

    Joined:
    May 6, 2011
    Messages:
    323
    Likes Received:
    14
    Last year, I took a break and spent time taking courses, and made only $1900 on paypal. Out of that 1900, I had to spend Almost $220 on online transactions to buy tools, and then I sent around another $80 on my debit card buying hosting, and other fees. I did not make over 20k, I did not have over 200 transactions, and I did not work that year, so I am wondering do I still have to file taxes or report this? I almost was like in a lost as I barely made anything, but I have money this year just in case I have to pay 10% or something like that.
     
  2. rockong

    rockong Power Member

    Joined:
    Jan 19, 2012
    Messages:
    661
    Likes Received:
    283
    Occupation:
    Wealth advisor to internet marketers.
    Home Page:
    Where are you located? Are you a dependent? Are you set up as a company or anything?

    I'm a licensed CPA (haha yeah seriously) so I can help.
     
  3. Toocoo82

    Toocoo82 Regular Member

    Joined:
    May 6, 2011
    Messages:
    323
    Likes Received:
    14
    Thanks. Just sent you a Pm.
     
  4. volund

    volund Senior Member

    Joined:
    Jan 24, 2010
    Messages:
    1,158
    Likes Received:
    728
    Occupation:
    Trying to make a buck or two
    Location:
    NW Arkansas
    Yes you are legally required to report the income and pay taxes on it. Those paypal limits have nothing to do with whether or not you need to report income.

    Now the question if you can not claim it and get away with it is a different one. Chances are with less than $2k you may well be able to do so.
     
  5. Toocoo82

    Toocoo82 Regular Member

    Joined:
    May 6, 2011
    Messages:
    323
    Likes Received:
    14
    Looks like the company I used to get my payments from were taking out for taxes, so I really made under that (actually under ($600), so after speaking to an accountant, they said I would have to report $600 or more.
     
  6. knall

    knall Regular Member

    Joined:
    Apr 16, 2010
    Messages:
    453
    Likes Received:
    161
    If its over $600 you are suppose to report it. If you choose to or not is up to you.
     
  7. brainstorm1

    brainstorm1 Jr. VIP Jr. VIP Premium Member

    Joined:
    Jan 13, 2012
    Messages:
    889
    Likes Received:
    329
    Occupation:
    IM full time
    Location:
    Deep south
    I don't think you have to report it if it is over $600. What is your source for this? I was under the impression it was $3500 or so. In the thousands at the very least.

    I made over $1000 last year (being employed for a few months) and I didn't have to pay taxes (other than what was taken out), but I am a dependent with my parents. I'm not too sure, but I feel like $600 is too low.
     
  8. knall

    knall Regular Member

    Joined:
    Apr 16, 2010
    Messages:
    453
    Likes Received:
    161
    I was misinformed. Apparently we are suppose to report everything:

    "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income."

    http://www.irs.gov/newsroom/article/0,,id=175963,00.html
     
  9. kerin12

    kerin12 Newbie

    Joined:
    Apr 10, 2012
    Messages:
    9
    Likes Received:
    0
    Location:
    Sydney
    I'm not an expert in US taxes (I live in Australia), however I think you'll need to declare all income you've earned. If it falls below the taxable threshold (ie. the minimum you need to earn to pay taxes) they will just exclude the amount from being taxed (you won't need to pay tax on it, but it still needs to be declared).
     
  10. brainstorm1

    brainstorm1 Jr. VIP Jr. VIP Premium Member

    Joined:
    Jan 13, 2012
    Messages:
    889
    Likes Received:
    329
    Occupation:
    IM full time
    Location:
    Deep south
    Ah yes, "report" vs. "pay taxes on" may be the cause of my own confusion. I guess it is necessary to report all income, but it may not be taxed until $X,XXX threshold is broken.
     
  11. Toocoo82

    Toocoo82 Regular Member

    Joined:
    May 6, 2011
    Messages:
    323
    Likes Received:
    14
    Yeah, I reported, but I didn't have to pay anything. There's even a free site that does it for free, since it was under 31,500 annually.
     
  12. jimmyjam1983

    jimmyjam1983 Junior Member

    Joined:
    Mar 28, 2011
    Messages:
    117
    Likes Received:
    86
    Home Page:
    Yup like others have said you need to declare any money made, However if its under a certain bracket "depends what country your from" depends on if theres any tax relief on it