Paying IRS from 0 Income

Forum|Forum|1 year ago
November 18, 2024
9 replies
63 views

I was with Vine 2023 to November 2024 when I opted out.

My husband and I filed jointly.

We received a $29,200 standard deduction. This is way over the amount of income received by both of us in a year.

We receive SSA, SSI and SSDI as our main sources of income.

When our taxes were professionally filed, our income was shown as 0 on the 1040 form, line 10.

I was not selling the products, I received. I only am using them for personal use.

How can we be paying the IRS taxes with no actual income? I have it set up for them to take payments monthly.

Should I do a tax amend?

Not A Product Question

Bsch4477

Level 15

You probably received a 1099-NEC form containing your taxable income for your products. That income is subject to 15.3 percent of self employment tax even though you don’t have a regular income tax liability.

You can avoid that tax if you consider that income a hobby by reporting it as other income instead of self employment income in the program.

VolvoGirl

Level 15

Yes did you get a 1099NEC or a 1099K from Vine? Did you enter it and fill out schedule C for self employment income?

penwright1029Author

Level 2

Our tax preparer did put the Vine 1099 NEC in as self employment. What doesn't make sense to me is, she gave us a $29,200 standard deduction which came to zero income for us. I'm, possibly, going to add it as hobby this next year. And I'm going to do my own tax return.

VolvoGirl

Level 15

Yes you had zero income after the Standard Deduction so you probably had zero regular income tax on 1040 line 16. But if you showed a profit on Schedule C you owe Self Employment tax on the profit. The SE tax is separate from income tax. Self employment tax is on 1040 line 23.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.