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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13335
Experience:  15years with H & R Block. Divisional leader, Instructor
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if you make 300.00 a month off the books ,do you need to report

Customer Question

if you make 300.00 a month off the books ,do you need to report that
Submitted: 7 years ago.
Category: Tax
Expert:  Robin D. replied 7 years ago.

HelloCustomer

You do not have to carry on regular full-time business activities to be self-employed. Having a part-time business in addition to your regular job or business also may be self-employment.

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to SE tax.

You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.

  • Your net earnings from self-employment (excluding church employee income ) were $400 or more.
  • You had church employee income of $108.28 or more.

So, in answer to your question, yes, you should report the income, but you should also keep track of any and all expenses you incurred to receive this income as they will lower the amount that is taxable.

 

I sincerely XXXXX XXXXX information is helpful,

Expert:  Robin D. replied 7 years ago.
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