Hello Kierrabgreen98,
Thank you for participating in the Ask the Experts Event. As to your question, being self-employed there are two taxes you need to be aware of--income tax and the self-employment tax. For your income tax, if your business net income at the end of the tax year is going to be more than your standard or itemized deduction then you could have taxable income.
For the self-employment tax, you will have to pay 15.2% of your net income regardless of your deductions. The self-employment tax is something those new to self-employment are always surprised about, but it isn't something new. When you are a W-2 employee your employer withholds 7.65% from your paycheck for social security and medicare and then matches that amount where the total submitted to the government is 15.2% on your behalf.
Being self-employed, you are considered both the employee and employer which is why that tax is 15.2%. However, you are able to deduct half of that amount from your income and you could also receive a 20% deduction for QBI (Qualified Business Income), both of which will reduce your taxable income.
Either way, if you project to have business net income and taxable income, it is a good idea to make estimated quarterly tax payments throughout the year. You can do so at this link.
So, to summarize, if you have net business income you will need to file a return to report the self-employment tax, but you may not have to pay any income tax if that net income is less than your deduction.
As to your question about proof of income for the courts, you will need to ask what type of proof they accept. It could be a tax return or bank statement, but there is no other form other than your tax return that would be available.
I hope that helps.
