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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I have a few books on Amazon, have made $200 so far, am

Customer Question

I have a few books on Amazon, have made $200 so far, am retired and on SS. I am 76 with eye issues so may stop writing at any time. Will net income be subject to FICA?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

That income will be taxable and should be reported on your tax return.
Depending on classification - reporting is different.
If that is hobby - report that income on form 1040 line 21 and it will not be subject to FICA.
If that activity is your business - report that income on schedule C as self-employment income - and you will deduct qualified business expenses - so NET self-employment income will be transferred to form 1040 line 12. If your net self-employment income is above $400 - it will be subject to self-employment tax (that is equivalent to FICA).

No need to stop writing. Congratulation with your success.

Expert:  Lev replied 1 year ago.

You will report your income and may deduct qualified expenses.- you may report all business income and expenses -
on the schedule C -
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
The net income (after deductions) will be reported on the form 1040 line 12 -
http://www.irs.gov/pub/irs-pdf/f1040.pdf
If the business has net income over $400, it may be required to file Schedule SE, Self-Employment Tax
http://www.irs.gov/pub/irs-pdf/f1040se.pdf
and net self-employment income is subject to 15.3% self-employment tax.
Self-employment taxes from schedule SE will go to the form 1040 line 57 -http://www.irs.gov/pub/irs-pdf/f1040.pdf
Also - you will deduct half of self-employment taxes on the line 27.Generally - that all you needs tax purposes.
Please review all possible deductions - that might help to reduce income tax liability.

Let me know if you need any help with reporting.

Expert:  Lev replied 1 year ago.

Let me know if you need any help with reporting.