Direct sales

Forum|Forum|3 years ago
January 5, 2023
1 reply
10 views

I work for a direct sales company and am wondering can I earn earned income credit from what I brought in from the direct sales company? I only made maybe 1,300 or so not a ton. Also will I owe taxes back? I will be getting a w9 from the company

xmasbaby0

Level 15

You have not mentioned your age or whether you have a qualifying child as a dependent. You have some self-employment income on which you will need to pay self-employment tax for Social Security and Medicare; you are required to file a tax return.

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021. And you cannot use your income from any earlier tax year to get the EIC for a 2022 return. EIC for 2022 will be based on the income you earned by working in 2022.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-eic-or-eitc

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

Instead of paying the rather expensive fee for Self-Employed online software you might want to use the IRS Free File site:

https://apps.irs.gov/app/freeFile/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Myson1Author

Level 2

Sorry I'm 35 with a qualifying child and disabled husband

GeorgeM777

Level 11

Yes, based on the information you provided, it appears you will get the earned income credit. Even if you have no tax liability, you will still get the earned income credit paid to you because it is a refundable credit. Below is a chart which summarizes the 2022 requirements for the earned income credit.

If you had taxes withheld from your pay, you might get that money refunded back to you if your deductions, such as your standard deduction, reduce your tax liability to zero. You will also get a credit for your qualifying child and possibly a credit for providing care to your disabled spouse. TurboTax will ask you questions about your qualifying child and your disabled spouse in order for you to get the most credits/deductions available to you.

@Myson1

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