Question by Cookie: How much money do you need to make before paying taxes on your small business?
I have my own out-of-the-home photography business. It’s just me that does it on a regular basis, however, I do bring on one other photographer for large weddings. I pay her with the money from that specific event. It’s still very new and maybe only bringing in a few hundred a month. It’s honestly a hobby/job. . .to fill in the income gap. Ohio law would pertain to this.
Best answer:
Answer by the tax lady
$ 400.
That’s because self-employment tax kicks in at a very tiny number.
As for your friend, while you *might* get away calling her a contractor, you need to give her a W-9 and give her a 1099-Misc at the end of the year if you pay her more than $ 600 during the year.
Know better? Leave your own answer in the comments!
If it is your only income, you must file and pay if you make over $ 400 for the year.
If it is addition to another job, you must include ALL additional income (even $ 1).