La Quinta, CA
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Thursday, May 7, 2015

At What Point Should A Self Employed Individual File Federal Income Tax?

If you carry on a trade or business as a sole proprietor, are an independent contractor, are a member of a partnership or, are in business for yourself in Coachella Valley in any other way, you are self-employed.

Not all self-employed persons make money, so many have the question of at what point should they file a federal income tax return?

The answer is if your net income from self-employment was $400 or more, you are required to file. This is different if you had church employee income.

The minimum then is $108.28. Self-employment can include work in addition to regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job.

You must file a return if your gross income is at least as much as the filing requirements amount for your filing status and age. You must file a form 1040 and a schedule SE if your net earnings from self-employment were $400 or more or if you worked as a church employee and had an income of $180.28 or more.

Of course there are always exceptions to the rule in it is a good idea to talk with a tax preparer since every situation is different. Call us today if you have any questions about tax preparation in the Coachella Valley.

Borders bookkeeping
(760) 895-3516