Since I'm so New to This, I Am a Little Confused About Paying

[dancedivine]

Since I'm so new to this, I am a little confused about paying taxes.

For instance, if I am only doing this as a hobby & I don't intend to earn very much.... Do I even have to file the taxes? (Let's say I make less than $1,000 a year in commission.) At what point am I required to pay taxes on the money? I am so confused about all this.

Thanks!

 

[LCOLACHICO]

Re: Taxes?I think that its $600. or more a year..

 

[BethCooks4U]

Re: Taxes?You get a 1099 if you earn $600 or more a year. Keep track of all expenses and have your tax preparer advise you.

 

[dancedivine]

Re: Taxes?So, if I don't earn at least $600, I won't get a 1099 & I don't have to file taxes? Ok, I think I'm learning now.... Thanks!

 

[BlessedWifeMommy]

Re: Taxes?Pampered Chef dollars you earn are counted as earnings and are reported on 1099s. I would suggest you talk to a tax consultant before deciding if you need to file.

 

[pcsharon1]

Re: Taxes?Just because you don't get a 1099 doesn't mean that Pampered Chef doesn't report your income to the IRS. They just aren't required to supply the info to you unless you make $600 or more. You have to pay taxes on all income - even those 12 stupid little $5 and $10 interest forms I got from various bank accounts (can you tell I just finished my taxes and am a little burnt out on the entire process )- so I don't think there is a minimum limit.

 

[Mel92504]

Re: Taxes?Remember there are a TON of expenses that you can write off...mileage being a huge one! I suggest that you search the threads, there are sooooooo many great tips that helped me a bunch!

 

[dancedivine]

Re: Taxes?

Just because you don't get a 1099 doesn't mean that Pampered Chef doesn't report your income to the IRS. They just aren't required to supply the info to you unless you make $600 or more. You have to pay taxes on all income - even those 12 stupid little $5 and $10 interest forms I got from various bank accounts (can you tell I just finished my taxes and am a little burnt out on the entire process )- so I don't think there is a minimum limit.

That is true... I suppose I can just enter the information where I enter the info from my interest income. I really need to find out about the state taxes, though. I have a feeling that part is a little more complicated than the federal taxes.

 

[erinb]

Re: Taxes?Not only are PC Dollars counted, but any product earned is added onto a 1099 as well.

 

[dancedivine]

Re: Taxes?Oh! I didn't realize PC dollars are also included... I suppose that does make a difference.