"Independent Contractor"...need to file taxes

[Flmd08]

So I found this really nice tutoring gig where they don't take any taxes out of my check. I made about $900 this year and they sent out a mass email saying that we are all responsible for our own taxes since it we are "independent contractors." The lady at financial aid said I don't need to file anything since I made less than some number...$6000 I think. Just wanted to check with you guys whether I need to report the $900. I can't imagine the IRS ever coming after somebody for a fraction of $900...

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[nontrdgsbuiucmd]

So I found this really nice tutoring gig where they don't take any taxes out of my check. I made about $900 this year and they sent out a mass email saying that we are all responsible for our own taxes since it we are "independent contractors." The lady at financial aid said I don't need to file anything since I made less than some number...$6000 I think. Just wanted to check with you guys whether I need to report the $900. I can't imagine the IRS ever coming after somebody for a fraction of $900...

Will the IRS ever pursue you for back taxes? Who knows..most likely the organization that paid you would have required your legal name and social security number and will send a notice to the IRS stating how much you have been paid as an independant contractor.

Take a look at the form SE (self-employed), typically as 1099 person you're on the hook for 15.2% of total pay for social security, medicare, etc..

 

[schwab]

So I found this really nice tutoring gig where they don't take any taxes out of my check. I made about $900 this year and they sent out a mass email saying that we are all responsible for our own taxes since it we are "independent contractors." The lady at financial aid said I don't need to file anything since I made less than some number...$6000 I think. Just wanted to check with you guys whether I need to report the $900. I can't imagine the IRS ever coming after somebody for a fraction of $900...

Assuming you're a student and this is the only income you had, you likely won't have to pay taxes anyway. It's probably a good idea to file, though, because you may qualify for tax credits that will put more money in your pocket.

Check out this post on my blog for more details on filing taxes as a medical (or pre-medical) student.

 

[dragonfly99]

agree with all the above.
Yes, you should report it.
However, you likely won't owe any income taxes if you are in school and are paying tuition, while only earning a few thousand dollars a year. In fact, you might get a tax rebate (due to tuition tax credit, etc.).

 

[The White Coat Investor]

You have to report it and pay taxes on it, including both halves of social security (yours and the employers.) Welcome to the wonderful world of independent contracting.

 

[TysonCook]

Yea, but isn't it if you make under a certain amt of $ it doesn't matter? I think it used to be ~$400, but has been increased since then. Something like you report it, but nothing gets taken out, etc?