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How To Report Side Job Earnings on a Tax Return

Even if you didn’t receive a 1099-MISC or W-2, you still need to report side job earnings on a tax return…

If you earned money from a side job and didn’t receive a form 1099-MISC or W-2 form, then you may think you’re off the hook from reporting it on your tax return. Think again.

The IRS requires taxpayers to report all income from any source. Even if it’s from a side job.

In fact, you’ll need to report it as self-employment income on a business tax return (Sch. C).

Reporting Money Earned From Side Jobs

You might be confused and asking “I don’t have a business-Why would I file a business tax return?” According to the IRS, “All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.” 

In other words, even if you don’t consider yourself a business owner or self-employed, if you’re 18 years or older, you’ll still need to report income earned from side work as self employment income on a Business Tax Return (even if it’s less than $600).

This includes fees received from;

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Can I File My 2011 Taxes in 2015?

April 15, 2015 was the last day to file your 2011 taxes to claim your refund!

Yes, you can still file your 2011 tax return. Unfortunately, you can no longer claim your 2011 refund.

Thanks to the IRS statute of limitation, you only have three years from the original tax return due date to get your refund. Once the three years passes by, don’t expect to see a penny of your refund money.

If you still need to file your 2011 taxes & owe tax…

If you still need to file your 2011 taxes, you should do so as soon as possible. If you weren’t expecting a 2011 tax refund and instead have tax due, you should keep in mind that failure-to-file fees, failure-to-pay fees and interest increase by the day. The longer you wait, the more you’ll end up paying. Continue reading “Can I File My 2011 Taxes in 2015?”

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Capital Gains Tax 2014

Here’s what You Should Know about Capital Gains Tax 2014

Did you sell certain assets such as stocks or bonds during the tax year? If so, you’ll need to report it on your tax return as a capital gains.  The tax you pay on it will be dependent on the type of capital gain it is and your income tax bracket.

As of 2013, the capital gains tax rate has become significantly more complicated. Fortunately, RapidTax is here to help clarify how much you’ll need to pay in capital gain tax. We’re also here to help you report your capital gains; both short term and long term.

Difference Between Long Term & Short Term Capital Gains

You may incur capital gains if you sell a certain asset such as;

  • stocks
  • bonds
  • property owned & used for personal purposes
  • property owned & used for investment purposes

Do note however; not all capital gains are the same. The IRS divides capital gains into two categories; short-term and long-term. Short-term and long-term capital gains are taxed differently. Before learning the capital gains rates, you’ll first need to know the difference between the two;