Home > Tax Question

Tax Question

April 19th, 2017 at 06:04 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.

6 Responses to “Tax Question”

  1. My English Castle Says:

    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:

    We'd be filing jointly.

  3. PatientSaver Says:

    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:

    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:

    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:

    Okay, thanks.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]