Hi guys, I'm fairly new to the web business. I started in late June and I was wondering how much income tax do I need to pay the IRS? I'm under 18 and I will be talking with my mother soon but I was wondering if all of my income will be taxable and what is there anyway I can deduct some income? Also if anyone knows what I should tell my mom, that'd be helpful.
I believe the letter of the law says as soon as you make a total of $500 you have to report the earnings. If you are a minor I'm pretty sure the PayPal account will have to be in their name for a business or premiere account (one that can actually accept payments for goods and services), but you might get away with it I dunno.
I've heard a few things about freelance jobs not having to be declared as long as they are independent operations that do not pay more than $600 from any one individual (Not sure on amount). If you are a professional freelancer who does this as your main employment though, I think you have to file as self-employed.