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LClaerFoster
New Member

Should I file a tax return if I made a little under $5000 over the summer? I weeded/planted at a farm. My supervisor said she doesn't have any tax forms for me to file.

I asked the owner of the farm (my supervisor) for the tax form to file my income from her farm. She said she doesn't have any tax forms for me and that I can choose to report my income on my taxes if I want to. How do I report this income if I have no form from the farm? Do I need to if I made less than $5000 and don't work at the farm anymore? I weeded, cleaned, planted and watered plants for 2.5 months over the summer. I got about $200-500 per week in a check the owner wrote out to me herself. She (the farm owner and my supervisor) said I was considered an independent contractor to her and that's why she doesn't need to give me a form for filing taxes. Please help me, I don't want to be in trouble with the IRS. 

2 Replies
rjs
Level 15
Level 15

Should I file a tax return if I made a little under $5000 over the summer? I weeded/planted at a farm. My supervisor said she doesn't have any tax forms for me to file.

Since you were an independent contractor and you made more than $400 for the year, you are required to file a tax return. The owner is supposed to give you a Form 1099-MISC since she paid you more than $600, but you don't need the form in order to file your tax return. You can report your income based on your own records of how much you were paid. You report the income as business income. If you have no other income you will not have to pay any income tax, but you will have to pay self-employment tax. The net rate for the self-employment tax will be about 14.13%.

Critter
Level 15

Should I file a tax return if I made a little under $5000 over the summer? I weeded/planted at a farm. My supervisor said she doesn't have any tax forms for me to file.

How do I report income from self-employment?If you received a 1099-MISC for your self-employed income

Type 1099-misc in the Search box and then select the Jump to link. This will take you directly to the section where you can enter your 1099-MISC. You’ll also be able to enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment.

If your self-employment income was only from cash, personal checks, credit card payments, or cryptocurrency 

Type Schedule C in the Search box and then select the Jump to link. This will take you to where you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment. You may first be asked some general questions about your business. After you answer them, you’ll be taken to the Let's get income for (your line of work) screen where you can enter this income as Additional Income.

Related Information:

·        What's the difference between self-employment income and other income?

·        Where do I enter a 1099-MISC?

·        Why am I paying self-employment tax?


If you are new to being self employed and  acting as your own bookkeeper and tax preparer you need to get educated ....   

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

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

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf



There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed


Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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 line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
 
 
- 2. You expect your withholding and credits to be less than the smaller of:
 
    90% of the tax to be shown on your current year’s tax return, or
 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

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