Hello all, thank you for the opportunity to participate in this event and gain some clarity in place of confusion.
Here are my main questions:
- Regarding sole proprietor taxes in a very low income scenario:
- If my only source of personal income in a year is $2,000 USD from freelance online work and sales of digital goods, do I still need to pay taxes on that, or do I not need to file taxes that year at all?
- If so, do taxes still need to be filed in quarterly estimated payments despite the low dollar amount, or can they be done yearly instead?
- How do I estimate tax payments accurately when my profits are unpredictable and inconsistent?
- I might make $400 one quarter, and $3,000 the next, but I have no way of knowing ahead of time. The amounts vary widely month-to-month, so using past quarters' profits isn't reliable either. There is no pattern, consistency, or correlation.
Thank you for your time and generosity in answering everyone's questions. It's really appreciated.
