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Tax Law : Federal, State and Local Income Taxes, Sales Taxes, etc. For Estate, Gift and Inheritance Taxes, Please Post Under Will, Trusts & Estate Planning
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Old 09-04-2001, 01:59 AM
david20b
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Question

if I make money online how much do I have to make to have to pay taxes on it?


If I make money online how much do I have to make to have to pay taxes on it?Is it $400.00 or $400.00+

Also if the money is paid to me monthly does the amount that I have to make fore I have to pay taxes on it change or does it stay the same?
  #2  
Old 09-04-2001, 12:03 PM
loku
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You are considered a self-employed person and you must file a return if your income from self-employment is $400 or more. Assuming you are single, you will not be subject to income tax unless your gross income is over $7,200 (and even then, if you have certain deductions, you would owe no income tax).

But you will have to pay self-employment tax (Social Security & Medicare). If you earn over $400 from self-employment, your self-employment earnings are taxed at an effective rate of a little over 14%, see Form 1040, Schedule SE, which you can download at: [url]http://www.irs.ustreas.gov/forms_pubs/index.html.[/url]

Also, I would suggest you download, from the same site, IRS Publication 17, Your Federal Income Tax. That publication will tell you everything you need to know about the income tax and the self-employment tax.
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