I recently started teaching classes at a local studio and the owner pays me half of the ticket sales but I am not their employee. Do I just save the checks to give to my tax filer when they ask about extra income or do I need to do more then that? Please advise, just trying to make some extra money on my days off and don’t want to get in trouble for it
Posted by snot_nosed_brat
3 Comments
They should provide a form 1099 that will become schedule C income.
Bear in mind that you’ll owe self employment tax of 15.3% on top of your regular tax rate (federal and state) so be sure to set some of that money aside for taxes.
Save about 25-30% of that income. You will owe federal, state, and self employment taxes.
1099. Self employment gig.