Just wondering if I have multiple jobs one year, can I not declare taxes if what I earn from each individual job is less than $600, or does what I make from all the jobs added together have to be under $600? And what if its at the $600 mark; does it have to be $599?
This is actually a pretty common misconception so let me see if I can sort it out for you.
You have to report all of your income, from whatever source, on your tax return unless it’s otherwise excluded. Income from jobs, whether it’s $10 or $10,000 has to be reported. There is no threshold amount of income for purposes of reporting on your end.
What is subject to a threshold is reporting from the person or company who is paying you for your services. With some exceptions, that amount doesn’t need to be reported to the IRS unless it is at least $600 for the tax year; at that point, the payor will issue you a form 1099-MISC. If they pay you $599, they likely don’t need to issue a form 1099 to you (again, some exceptions apply). That doesn’t translate, however, into a free pass on your end. You still have to report that income.
If it’s hobby or other income not related to a business, you’ll likely report it on Line 21 (other income). If it’s part of an ongoing business (for example, you’re an entertainer and these are payments from individual performances), you’ll report it on a Schedule C. On the plus side, if your gigs are part of a business, you can always claim related expenses on your Schedule C. If you poke around the blog, you’ll see some related queries about Schedules C and expenses.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.receive posts by email, follow me on twitter (@taxgirl) hang out with me on Facebook and check out my YouTube channel.