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How much $ per year has to be reported as self-employeed earned income? |
For the past year I've worked as a private duty nurse and want to report my income - but my boss and the other nurses say it isn't necessary. Most of the other nurses have been working for these people for several years and apparently have never claimed any income....they are concerned if I claim my income, the IRS will somehow find out who they are and they will be penalized or possibly face jail time....I don't want to get anyone in trouble with the government, but I believe I should do what is right. What say you? Your reporting will have nothing to do with them. If you fail to pay your self-employment social security taxes annually on Schedule SE do not expect a big social security check when you retire. So I say pay on all of it or most of it. You need to report ALL of your income. If you ever were audited, it would be found out. Part of the audit is they look at your bank accounts. Unsubstaniated deposits will be obvious. And then they will assume ALL deposits are income, including gifts etc until you can prove they aren't. And since this is Self Emp income, you can deduct the expenses you incur to earn that money such as mileage to and from. Per the law, all income must be report whether the IRS knows about it or not. If that's your only income, you are legally required to report it and pay taxes if your total for the year is over $400. If you or a spouse have other income also and you are filing a tax return, then you'd have to report even $1 of self-employment income. one clarification to some of the other answers is that 400 minimum is the net amount after expenses. If you received 8000 in revenue but have 7700 in expenses you wouldnt have to report it since your net is only 300. |
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