I made less than $400 as independent contractor, how much will IRS take?

[andresvou]

I was hired as an Independent Contractor once and made $300. After reporting it in my income taxes, how much will the IRS take?

[rjs · Accepted solution]

It depends on your other income. If the $300 is your only self-employment income for the year, you will not have to pay any self-employment tax. But you will have to pay income tax on the $300. How much income tax you have to pay depends on what tax bracket your other income puts you in. For example, if you are in the 25% bracket the tax will be $75 (25% of $300). If you receive Social Security benefits, the additional income could make more of your Social Security taxable, which would add to the amount of tax you have to pay.

If the $300 of self-employment income is your only income of any kind for the year, you will not have to pay any tax and you do not even have to file a tax return, unless you received the advance premium tax credit for health insurance.

[andresvou]

Thank you very much, this answers all my questions!

[Bees]

You are not able to file a 1099 misc or any earnings from self employment with the online free version of Turbotax ,you will have to upgrade all the way to  Home and Business. Downloaded versions do that at a lower priced level. Or taxfreedom.com version is  available for free if your total income is under $31k.
 When you have self employment income over $400 you pay social security and medicare taxes that add up to 15.3% of your net income.