I helped my sister with a couple of jobs, and she paid me $1,300, which is my total income for the year since I’m currently unemployed. She also had me write up an invoice so she can write it off. I know this is under $13,850, but I’m wondering if this means I’m self-employed and if I need to report it since it’s over $400.
If I do need to report it, what documents should I keep for tax purposes? Also, any idea how much I should set aside for taxes on this amount?
You must file an income tax return if your net earnings from self-employment are $400 or more. If your net earnings were less than $400, you still need to file if you meet any other filing requirements listed in the Form 1040 and 1040-SR instructions.
Generally, yes, you need to report your income for taxes. There are exceptions based on income level and filing status. Consult tax authorities or a professional for specific guidance.
