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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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Do Unemployed File Taxes?

If you’re unemployed, plan to file a 2014 tax return. Unemployment benefits are taxable.

“Do I pay taxes on unemployment benefits?”, “Do I file taxes if I’m unemployed”. If you’re unemployed, these questions may sound familiar.

The answer to both is yes.

The bottom line is this; you’ll need to file a  tax return and report all income received, including any unemployment benefits received.

Being under unemployment in 2014 doesn’t mean your free from filing a tax return. You’ll need to report your unemployment compensation sooner or later. It will be to your advantage to get it out of the way on time, during the 2015 tax season.

How to Report Unemployment Benefits on a Tax Return

Any income you receive during the tax year counts as income that you need to report on your tax return. Above all, the IRS considers unemployment benefits as income that you must report on a tax return. Continue reading “Do Unemployed File Taxes?”

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Life Changed but your W-4 Didn’t: Why You Need to Update Your W-4 Withholding

If you paid a large tax liability bill after filing your taxes, you might want to update your W-4 Form.

Are your friends on a summer vacation (thanks to their tax refund checks) while you’re stuck at home because you were forced to write a check for your tax due?

If you ended up writing a large check to the IRS for the total of your tax liability, it’s good to know that you’re (somewhat) in control of  what that total will be next year. Surprisingly, it isn’t some randomly generated number, nor is it based on luck. In fact, it’s linked to the number of allowances listed on your W-4 form. That means, you’ll want to take a look at the number reported on your W-4 Form.

What a W-4 Form Is & How it Affects your Tax Refund

For those of you unsure of what a W-4 form is- it’s one of the forms you were handed upon your first days of employment at your job. To be more precise, a W-4 form is used by your employer to determine the amount of taxes to be withheld from your pay. The number of exemptions claimed on it directly affects your tax refund or tax due.

Continue reading “Life Changed but your W-4 Didn’t: Why You Need to Update Your W-4 Withholding”