Filing while being claimed as dependent.

[qgedeon]

Hi, I was reading your thread about dependents and was wondering to clear up some questions.

I am under the age of 24 + full time student. My parents claim me as dependent but I work as self employed. I believe I still have to pay self employment tax and file a tax return but is that all I have to pay or do I have to pay income tax as well? If so, how do I set it up to pay quarterly and what forms do I have to sign as a self employed individual. 

[xmasbaby0]

If you are self-employed and had even $400 of self-employment income, you need to pay self-employment tax for Social Security and Medicare.    As for whether you will owe ordinary income tax as well depends on how much you earned.   You still need to pay the SE tax even if you can be claimed as a dependent.   On your own tax return in My Info, you must say that you can be claimed as someone else's dependent.

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

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

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

If you use online TurboTax, you need to use the Self-Employed version.  If you use the CD/download you can use any version of the software.  You will be preparing a Schedule C for your business expenses.  

Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

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

[TomD8]

I think this IRS reference should answer all your questions.  Post back if it doesn't.

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

[qgedeon]

How much income would be considered to start paying income tax? And also, if I have to pay it, what is the website to pay quarterly? Also, what is the abbreviated word SE stand for?

[TomD8 · Accepted solution]

SE = Self-Employed

You can make you federal estimated tax payments here:  https://www.irs.gov/payments

You have to file a federal tax return if you have $400 or more in net self-employed income.

Note that, if you live in a state with an income tax, your state's filing requirements may differ.

[qgedeon]

Lastly, what is the amount considered before you start paying ordinary income tax? The link did not provide the information to answer this question.

[xmasbaby0]

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750