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Level 1
November 16, 2022
Question

Dependent - Independent Contractor making less than Standard Deduction

  • November 16, 2022
  • 1 reply
  • 7 views

If I have a dependent that made less than the Standard Deduction (12,900) this year and they worked as an independent contractor, do they still need to submit taxes?

 

Thank You!

    1 reply

    Level 5
    November 16, 2022

    For tax purposes, the IRS treats independent contractors as self-employed individuals. That means you're subject to a different set of tax payment and filing rules than employees. You'll need to file a tax return with the IRS if your net earnings from self-employment are $400 or more.

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