421025
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I understand that if a person makes less than $600 from an employer it is not necessary to claim that as income. Is this correct?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

I understand that if a person makes less than $600 from an employer it is not necessary to claim that as income. Is this correct?

No, you pay income tax on all amounts of income, even $1.  The $600 threshold you are referring to refers to requirements for issuing tax forms.  For example, a lender doesn't have to actually issue (mail to you) a Form 1098 unless the interest is over $600.  Likewise, if you are an employer and have an independent contractor (Form 1099MISC), you don't have to issue the form to the contractor unless it is over $600.  But, this doesn't mean you don't have to pay tax on this amount.  You still need to report and pay income tax on all amounts.

Of course, because of deductions and exemptions, if that is your only amount of income, then you would not pay tax on it.  For example, a single person under 65 not being claimed as a dependent would not begin to pay income tax until after $10,350 in income because of the standard deduction and personal exemption.

View solution in original post

1 Reply

I understand that if a person makes less than $600 from an employer it is not necessary to claim that as income. Is this correct?

No, you pay income tax on all amounts of income, even $1.  The $600 threshold you are referring to refers to requirements for issuing tax forms.  For example, a lender doesn't have to actually issue (mail to you) a Form 1098 unless the interest is over $600.  Likewise, if you are an employer and have an independent contractor (Form 1099MISC), you don't have to issue the form to the contractor unless it is over $600.  But, this doesn't mean you don't have to pay tax on this amount.  You still need to report and pay income tax on all amounts.

Of course, because of deductions and exemptions, if that is your only amount of income, then you would not pay tax on it.  For example, a single person under 65 not being claimed as a dependent would not begin to pay income tax until after $10,350 in income because of the standard deduction and personal exemption.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question