Home |IRS Tax Return | If my annual gross earned income from side activities like beermoney is around $4,000 to $5,000 and I receive 1040 forms for exceeding certain thresholds (e.g., $600 from Amazon Vine or PayPal), am I required to file taxes even if I don't expect to receive a refund?

If my annual gross earned income from side activities like beermoney is around $4,000 to $5,000 and I receive 1040 forms for exceeding certain thresholds (e.g., $600 from Amazon Vine or PayPal), am I required to file taxes even if I don't expect to receive a refund?

Answer Notify Me - 1 Notifying - 2
Robert James, 20+ years of experience in IRS matters
Answered on September 15,2023

Usually beer money things count as self-employment income in the US, so if you make more as an individual than $400 a year you have a filing requirement.

This is completely separate from the requirements of payers to issue a 1099 when they pay you more than $600 a year.

The Form 1040 is the individual tax return that you file yourself to show IRS your income and any taxes paid during the year.

Even though your income is low, self-employment income is subject to Social Security and Medicare taxes, just like W-2 income. You'll owe about 14% of your net Self-employment income on the tax return, although you might qualify for some tax credits that would cover that amount.

Clap Clap 0
Share Share Answer Share Share
Views 23 views
tesz.in
Hey , can you help?
Answer this question

Related Questions