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New Member
posted Feb 12, 2022 11:14:13 PM

Should I list myself as being self employed if I made a little less than $400 in art commissions last year (after fees were taken off original price on PayPal)?

Times were tough at the start of last year, and I had to set up for art commissions. A few good friends helped support me by buying commissions, which before PayPal took fees off the invoices totalled to $350. After PayPal's fees, it totalled to $342.55. I had heard that if you make less than $400 annually on such commissions then it's a negligible amount and doesn't need to be listed, but I don't want to not file it in my taxes if it's important for me to list it still.

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1 Replies
Expert Alumni
Feb 13, 2022 5:13:27 AM

You are self-employed but self-employment income less than $400 is subject to income tax but not subject to self-employment tax.  IRS Publication states:

 

You're self-employed for this purpose if you're a sole proprietor (including an independent contractor), a partner in a partnership (including a member of a multi-member limited liability company (LLC) that is treated as a partnership for federal tax purposes) or are otherwise in business for yourself......You usually must pay self-employment tax if you had net earnings from self-employment of $400 or more.

 

This IRS publication states:

 

Generally, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax.