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Tax Question

April 19th, 2017 at 07:04 pm

I am probably going to earn around $500 to $600 this year through youtube and adsense which is considered self-employment. If I put all of that money into an IRA will I still have to pay any taxes? I am still trying to figure out how the whole self-employment thing works.

Posted in Taxes | 6 Comments »

6 Responses to “Tax Question”

  1. My English Castle Says:
    April 19th, 2017 at 08:27 pm 1492630055
    1492630055

    Monkey Mama probably has the answers, but if you're and DH are filing jointly, you'd have to claim it, though it probably wouldn't affect your taxes much.

  2. LuckyRobin Says:
    April 19th, 2017 at 08:54 pm 1492631681
    1492631681

    We'd be filing jointly.

  3. PatientSaver Says:
    April 19th, 2017 at 10:19 pm 1492636793
    1492636793

    Dido can also help.

    If you were filing singly, employers won't report earnings of under $600 to the IRS.

    But if your taxable income is less than the maximum contribution, you can only contribute up to the actual dollar amount of your earned income for the year. In other words, you can't contribute more to your IRA than you earn.

  4. creditcardfree Says:
    April 19th, 2017 at 10:33 pm 1492637616
    1492637616

    If you are married, you consider all earned income. I have no earned income, but my husband and I both max out our IRAs. Sorry no help on self employment tax.

  5. Dido Says:
    April 19th, 2017 at 11:27 pm 1492640877
    1492640877

    Self employment tax is separate from in one tax, though you file them on the same return. SE tax is you paying the employer and employee share of FICA taxes on SEvincome over $400. You get a deduction for half of SE tax paid on the front of the 1040, too. At this level, it won't add much to your tax bill, but it IS a separate tax that adds to your earnings for subsequent Social security. The tax is on the net, not gross income, so if you have legitimate expenses, you can reduce the tax, but you also reduce the addition to later Social Security income.

  6. LuckyRobin Says:
    April 20th, 2017 at 07:17 am 1492669076
    1492669076

    Okay, thanks.

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