3693093
Hello,
I am a young disabled adult who wants to create and run my own handmade jewelry business out of my home.
It will be a sole proprietorship and will be an online store (I will build my website and do all updates/upkeep myself).
I receive SSI for my disability (I know I have to report my earnings to SSA when I start to earn). I do not pay for Medicare through a government program. I live in an "apartment" that is part of the home my parents own, and I pay rent to them (don't know if it is relevant or not).
I know that I will have to pay self-employment taxes if net earnings are $400 or more. I also know I have to pay taxes on income in general.
My question is, does the IRS require an income tax form for any amount, or is there a minimum threshold?
I appreciate any help you can provide.
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In most cases, you would not need to file a tax return if your total income (not including SSI) is less than $400.
You would first want to analyze if it actually is a business. If you are expecting your income to be that low, it leads to the thought that it MIGHT be a hobby (you can Google something like "IRS business vs hobby"). If it is a business, then if your business PROFIT (after expenses) is $433 (give or take $1, depending on rounding) or more, you will likely need to file a tax return to pay self employment tax.
If you need to file a tax return, you'll need to also analyze if your parents are eligible to claim you as a dependent, and if they are, make sure that is mentioned on your tax return.
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