HI, JoaElizaC,
Unfortunately, you have been misinformed about your tax filing obligations. If you are self-employed, you must file a tax return if you have more than $400 in net self-employment earnings. This article will explain your filing obligations. Sorry to continue with potential bad news, but not filing a federal tax return when required subjects you to both failure to file and failure to pay penalties, if you owed taxes. Here's some information about that.
You likely want to start paying self-employment taxes quarterly (and estimated income taxes). The tax system is a pay as you go system, and, if you owe more than $1000 when you file your taxes, you may be subject to failure to pay penalties if you are not eligible for an exception (such as safe harbor). Note that self-employment taxes are in addition to income taxes (they are FICA and Medicare taxes) and come as a surprise to many new to self-employment. This article explains about the requirements and safe harbor rules to avoid penalties.
I know this is a lot. Keep in mind that the first step is to get into compliance. You can find TurboTax software to catch up on some of your back taxes here and you may wish to consider engaging an pro. There are several out there and a verified pro may be an option you wish to consider. Also keep in mind you can often set up a payment plan related to your tax balances. Here's some info on that.
Hope this helps.
**Please cheer or say thanks by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Regards,
Karen
TurboTax Expert
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
