Do I need to file taxes this year?

[madisonpaige]

Hello! I am self-employed and last year I made less than 2,000 and my net earnings are definitely under $400 because I had to buy a new laptop for work + home office deductions and other things. I've never filed taxes before and I'm wondering if I need to this year? The IRS website says self-employed don't need to file if their net earnings are under $400 but I heard elsewhere that you still have to pay social security and medicaid taxes no matter what. Is that true? I'm wondering if I misunderstood something or if they did.

Also, if I end up going over $400 net earnings this year, what forms would I most likely need to file as a self-employed freelance editor who works from home? (Btw I live in Texas, I don't know if that information is helpful or not but I know I don't need to worry about state income tax at least). Thank you so much to anyone who is able to answer these questions. I appreciate your time.

[Vanessa A]

Does your home office definitely qualify as a home office?  Meaning, do you use it regularly and exclusively for the business.  This means you don't use it to pay personal bills, your kids don't use it to do homework. It is only used for business. 

If it is not, then you can not take that deduction.  Without that deduction, is your net income still under $400.

Do you have any other income and need to file a return anyways?  If so, then you do need to include your business income regardless of how much your net earnings are.

If you do not need to otherwise file a return and your net earnings are under $400, then you do not need to pay social security or Medicare taxes. 

If you do go over $400, you would need to file a Schedule C.