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How much do I need to earn doing contract work before I have to pay taxes on it. I will get a 1099 but if I work under $200 and that is all I made for the entire year on that 1099 would I have to report that on my tax return?
ANSWER
Expert Mark Anderson's Answer:
Yes. According IRC Section 61 you have to report income dervied from any source. You need to report the $200 on schedule C. However, you can deduct business expenses against business income.
Expert Linda Burroughs's Answer:
The rule is that all income, regardless of the amount is taxable according to IRS. The payer does not have to send you a Form 1099 if the amount is less than $600. In conclusion, you should include the payment on your tax return.
