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2 Replies Last post: Sep 29, 2009 4:58 PM by LUCKIEST

Trying to figure out tax requirements for home tutoring...

Sep 28, 2009 10:15 PM

logandiana 1 posts since
Sep 28, 2009

I am a former teacher. Three days a week I go over to my friend's aunt's house and work as one of the personal tutors their autistic child. The mom pays me once a week by personal check. I have never had to fill out any paperwork or anything. I am unsure how to treat this as far as income tax is concerned. For the year I'll probably end up making around $10,000. Anyone know what I am obligated to pay in taxes and what forms I should look for? I'd like to keep it as simple as possible, but then we are talking taxes so I am sure that's probably impossible. By the way, I live in Texas and there is no state income tax.

Thanks
Diana

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bm911tax 64 posts since
Jun 30, 2009

1. Re: Trying to figure out tax requirements for home tutoring... Sep 29, 2009 3:47 PM

What you are describing is self-employment income. You need to report that income on your tax return form 1040 line 12 - Business income or (loss). First fill out Schedule C or C-EZ. You will pay Income taxes your marginal tax bracket (depending on your income 10%-33%) and self-employment taxes (social security and medicare) of 15.3%. If you will continue in 2010, you will also need to pay quarterly (every 3 months) estimated taxes from your self-employment income form 1040-ES. You will be also eligible to deduct necessary and ordinary business expenses that will reduce your taxable income. To learn more visit http://www.irs.gov/businesses/small/article/0,,id=98846,00.html

Make sure you put at least 35% of your self-employment income aside to pay these taxes.

Ben,

http://taxbizpro.com/

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LUCKIEST 7,942 posts since
Aug 6, 2007

2. Re: Trying to figure out tax requirements for home tutoring... Sep 29, 2009 4:58 PM

Tax requirements for home tutoring, Welcome Diana

I would talk to a local accountant NOW, before the end of the year.

YES taxes can be simple. Good luck

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ForumsTaxes and Payroll

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Trying to figure out tax requirements for home tutoring...

Sep 28, 2009 10:15 PM

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