imported_NHBFAN
New member
Is there a dollar amount that you are supposed to declare if you are a part-time detailer? Or, do you suppose to declare every dollar?
Legally what amt of $$$ can you earn before you declare it?
- Thread starter imported_NHBFAN
- Start date
Each city is different, in the state of TN you don't have to decalre or establish a business license unless you are going to gross $4800. It is nice to go ahead and get your city and county tax license they are only $20 each and it establishes you as a legitimate business. The state is not as important, you can file for a business tax and sales license if you are selling any product. My suggestion is don't worry about it unless you have an employee or you are really grossing over $8000.
Jngrbrdman
New member
Just remember that self employeed income is taxed a lot differently than traditional income. Self employeed people get hit hard and can be placed near the 50% tax bracket. I don't know what the exact number is that you can make before the IRS is going to wonder where your extra money is coming from, but I know that I don't make enough to make them wonder. I get paid in cash and by PayPal. Both are sources that the IRS is going to have a tough time tracking. Most of it just goes back into products anyway.
imported_mirrorfinishman
New member
NHBFAN said:
Here's a link to the IRS website where you will find accurate information helpful in answering your questions related to being self-employed.
http://www.irs.gov/businesses/small/article/0,,id=115045,00.html
Self-Employed Individuals:
Who is Self-Employed?
If you are in business for yourself, carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself as a self-employed individual.
The IRS does not require you to have any licenses, permits or sales tax numbers to operate your business, they may be required by your state or local jurisdiction.
Do I Need an Identification Number?
You must have a taxpayer identification number to operate your business. This is generally your social security number, or an individual taxpayer number.
Filing Requirements for the Self-Employed
As a self-employed individual, you may be responsible for completing multiple tax forms, depending on your type of business.
Source: IRS
Hi there,
Generally, there's no special rate of tax on self employed business income (e.g. the rate of tax doesn't vary if your self employed or an employee). There are minor differences but its really not worth getting into them. In the US as in Canada, you are taxed on your world wide income. The rate of tax can vary with the amount of income, that is, the more income the higher the tax rate (to a maximum of course).
I think what Jngrbrdman is referring to is what we call net worth assessments in Canada. They'll are generally applied when the authorites know because of your lifestyle you are underreporting income. They often arise because someone provides the authorities with an anonymous tip or they audit you and you say your earn $40K per year and are leaving in a mansion (eg drug dealer).
Any way for your info only.
PS I'm a tax consultant in Canada but naturally we do tons of Xborder stuff.
Generally, there's no special rate of tax on self employed business income (e.g. the rate of tax doesn't vary if your self employed or an employee). There are minor differences but its really not worth getting into them. In the US as in Canada, you are taxed on your world wide income. The rate of tax can vary with the amount of income, that is, the more income the higher the tax rate (to a maximum of course).
I think what Jngrbrdman is referring to is what we call net worth assessments in Canada. They'll are generally applied when the authorites know because of your lifestyle you are underreporting income. They often arise because someone provides the authorities with an anonymous tip or they audit you and you say your earn $40K per year and are leaving in a mansion (eg drug dealer).
Any way for your info only.
PS I'm a tax consultant in Canada but naturally we do tons of Xborder stuff.
Bill D
Hooked For Life
Jngrbrdman said:
mirrorfinishman said:
I feel it's a lot safer getting a separate, distinct number rather than your SSN, who knows who's going to see that when you fill out various paper work over the course of conducting your business?
jimmybuffit
That'll buff right out!
Frankly, the IRS doesn't discriminate based on geography.
If you choose not to report income, you'll be at risk of penalties, interest and fines.
I speak from experience.
And I suggest a minimal amount of posting on this subject on a public forum.
Jim