Direct sales

[Myson1]

I work for a direct sales company and am wondering can I earn earned income credit from what I brought in from the direct sales company? I only made maybe 1,300 or so not a ton. Also will I owe taxes back? I will be getting a w9 from the company 

[xmasbaby0]

You have not mentioned your age or whether you have a qualifying child as a dependent.   You have some self-employment income on which you will need to pay self-employment tax for Social Security and Medicare; you are required to file a tax return. 

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021.   And you cannot use your income from any earlier tax year to get the EIC for a 2022 return.  EIC for 2022 will be based on the income you earned by working in 2022.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

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

Instead of paying the rather expensive fee for Self-Employed online software you might want to use the IRS Free File site:

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

[Myson1]

Sorry I'm 35 with a qualifying child and disabled husband 

[GeorgeM777]

Yes, based on the information you provided, it appears you will get the earned income credit.  Even if you have no tax liability, you will still get the earned income credit paid to you because it is a refundable credit.  Below is a chart which summarizes the 2022 requirements for the earned income credit.  

If you had taxes withheld from your pay, you might get that money refunded back to you if your deductions, such as your standard deduction, reduce your tax liability to zero.  You will also get a credit for your qualifying child and possibly a credit for providing care to your disabled spouse.  TurboTax will ask you questions about your qualifying child and your disabled spouse in order for you to get the most credits/deductions available to you.  

@Myson1

[Myson1]

I did not have any taxes taken out the company doesn't do that. I will have to file those myself. I only made slightly over $1,440. I work directly from my phone and advertise and make graphics and sell some products for the company. I'm just trying to figure out my best way to file.

[VolvoGirl]

That is self employment income.  You should get a 1099NEC from the company.  To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.

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

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit 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. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf