i live in ohio and am considering opening a kofi account to sell shirts and digital products . i have never done this before , what would be the limit before i have to report my earnings on a tax form . this is my only form of employment atm if i take on this venture
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If you make even $400 of self-employment income---which is what that would be--you are required to file a tax return and pay self-employment tax for Social Security and Medicare. Depending on how much you make in the year, you may also have ordinary income tax to pay.
Some information:
If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.
https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes
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://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-
calculator-2021-2022-50907/
https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs
If you live in a state with a state income tax, you might need to make estimated payments to your state.
https://turbotax.intuit.com/tax-tools/calculators/self-employed/
so i spoke out to kofi this morning and they told me if i pass a nexus threshold of 100k/200 transactional sales then i am permitted for taxes as they are not a site that collects, they leave it responsible to the seller to figure it out . so does the $400 limit you mentioned still something that affects me ? i do have screenshots of what they said
Yes. The tax law---written by Congress--- says that if you have even $400 of self-employment income, you must report it on a tax return and pay self-employment tax. The screen shot you included pertains to sales tax, which has nothing to do with the issue of whether you need to pay self-employment tax.
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