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@KSc4 wrote:

When I report income under $600 in the less common income section, it reduces the amount of my federal refund and increases my amount due to the state. My understanding was that you don't have to pay taxes on income under $600?


If you file a tax return, you are required to report all your income.  No exceptions.  (Whether you will get caught if you don't is a gamble only you can decide to take.)

 

In some cases, your overall income might be low enough that you aren't required to file, but that is a different discussion.