Monday, May 24, 2010

Questions for the Tax Lady: May 24th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: I have been doing some graphic design for a company as an independent contractor. How much money do I have to make in order to be taxed?

Self-employed individuals are required to report any income earned over $400. If you work for a company, as a contractor, the company is required to send you an IRS Form 1099. The IRS Form 1099 will have the exact amount the company paid you for your contracting work.

Question #2: I just started working as a waitress in a upscale restaurant, do I need to report my tips to the IRS?

Yes. All tips you receive should be reported to the IRS and are therefore are subject to federal income taxes. Technically you should keep track of your tips, and include the yearly total on your next tax return.

Blog Archive