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I made less than $400 as independent contractor, how much will IRS take?

Forum|Forum|6 years ago
June 1, 2019
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I was hired as an Independent Contractor once and made $300. After reporting it in my income taxes, how much will the IRS take?

Best answer by rjs

It depends on your other income. If the $300 is your only self-employment income for the year, you will not have to pay any self-employment tax. But you will have to pay income tax on the $300. How much income tax you have to pay depends on what tax bracket your other income puts you in. For example, if you are in the 25% bracket the tax will be $75 (25% of $300). If you receive Social Security benefits, the additional income could make more of your Social Security taxable, which would add to the amount of tax you have to pay.

If the $300 of self-employment income is your only income of any kind for the year, you will not have to pay any tax and you do not even have to file a tax return, unless you received the advance premium tax credit for health insurance.

rjsAnswer

It depends on your other income. If the $300 is your only self-employment income for the year, you will not have to pay any self-employment tax. But you will have to pay income tax on the $300. How much income tax you have to pay depends on what tax bracket your other income puts you in. For example, if you are in the 25% bracket the tax will be $75 (25% of $300). If you receive Social Security benefits, the additional income could make more of your Social Security taxable, which would add to the amount of tax you have to pay.

If the $300 of self-employment income is your only income of any kind for the year, you will not have to pay any tax and you do not even have to file a tax return, unless you received the advance premium tax credit for health insurance.