Taxes For Turkers - Reporting Self-Employment Income

MerryLou

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Edit: I think I got it.
 
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sinon

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So I filed like months ago. Today wanted to review it so I downloaded a copy of my return. I know ya'll say to get a tax expert, but I wanted to confirm if anyone has had this happen before I lose my mind.

Looking at my return, we're a little stumped. I filed exactly as I should have and as I have previous years. My income from Mturk was meager, around 2k, put under Schedule C as normal. This was put under Federal. The state tax return was $0. The only income I had was from mturk and stuff, no retail job etc. But H&R I think did ask me if my income was less than previous year filed and I did say yes. And from there it did ask me to import my last tax return for them to verify, so I did.

Somehow from all of this, it's saying my gross income is like $8,000 even though it was submitted as everything $0 for state.

Is this something H&R just did on its own? Because literally the only things I submitted to it were my college tax form, my health 1095-B, and the Schedule C with the 2k as the only income.
 
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Zacharias

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So I filed like months ago. Today wanted to review it so I downloaded a copy of my return. I know ya'll say to get a tax expert, but I wanted to confirm if anyone has had this happen before I lose my mind.

Looking at my return, we're a little stumped. I filed exactly as I should have and as I have previous years. My income from Mturk was meager, around 2k, put under Schedule C as normal. This was put under Federal. The state tax return was $0. The only income I had was from mturk and stuff, no retail job etc. But H&R I think did ask me if my income was less than previous year filed and I did say yes. And from there it did ask me to import my last tax return for them to verify, so I did.

Somehow from all of this, it's saying my gross income is like $8,000 even though it was submitted as everything $0 for state.

Is this something H&R just did on its own? Because literally the only things I submitted to it were my college tax form, my health 1095-B, and the Schedule C with the 2k as the only income.
That doesn't sound correct. Your Adjusted Gross Income (AGI) shouldn't be higher than the combined amount you report earning from all sources.

There's not enough information in the post to say how $2,000 would take a wrong turn into $8,000. Were your mturk earnings written down as $20,000 instead of $2,000 by accident? I could see that making your taxable income on line 43 show up as somewhere around $8,000.

If you want to share more specifics about it, such as what is reported on different line #'s of your 1040 it is possible we could track down where it went kaput. Just keep in mind I'm some guy on the internet and not a tax professional myself.
 
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sinon

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That doesn't sound correct. Your Adjusted Gross Income (AGI) shouldn't be higher than the combined amount you report earning from all sources.

There's not enough information in the post to say how $2,000 would take a wrong turn into $8,000. Were your mturk earnings written down as $20,000 instead of $2,000 by accident? I could see that making your taxable income on line 43 show up as somewhere around $8,000.

If you want to share more specifics about it, such as what is reported on different line #'s of your 1040 it is possible we could track down where it went kaput. Just keep in mind I'm some guy on the internet and not a tax professional myself.
Hmm, looking at my records it's written in correctly as $2,105 (was rounding that in the other post). The $8,000 bit shows up under the state filing only, which I entered everything as $0. The only time I put in an income was under Federal for $2,105. I got an EIC and an American Opportunity credit but those were meager, $384 combined so I don't think this impacted it.

Somehow under my Federal (for tax summary) it's listing $10,400 in total deductions even though when I filed, I did not list or claim anything. I had nothing to deduct. Thinking of it this way, I'm wondering if something absolutely bonkers happened. Just not sure what to make of these numbers when I did not enter any of this myself...

It's basically stating on the state part under line 1 that the Federal Taxable Income from my 1040 is $8,444. But when I go to the 1040 it says the adjusted gross income is $1,956...

I'm not sure what other lines would be of help in this, but I appreciate your time :) I might have to ask H&R block.
 
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Zacharias

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$10,400 is the total of the standard deduction for singles ($6,350) and the personal exemption ($4,050). As long as you aren't being claimed as a dependent, both should apply to you.

If standard deduction and personal exemption are greater than your adjusted gross income (AGI), then your taxable income should be entered as $0 on line 43.

Is it possible that a -$8,444 was entered on line 43 instead of $0? Since that number is supposed to be zero or positive, maybe the state forms imported the -$8,444 but didn't have a function to keep it negative (since the number there shouldn't be negative).

The storyteller in my head says that this would make total sense of what happened. If you are single and claim yourself then the math lines up perfectly for there to be an $8,444 error.

Summary assuming you are single and no one else claims you as a dependent:

Line 43 on your form 1040 should be $0. Then this number should be used as your taxable income that the state is asking for.
 
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sinon

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$10,400 is the total of the standard deduction for singles ($6,350) and the personal exemption ($4,050). As long as you aren't being claimed as a dependent, both should apply to you.

If standard deduction and personal exemption are greater than your adjusted gross income (AGI), then your taxable income should be entered as $0 on line 43.

Is it possible that a -$8,444 was entered on line 43 instead of $0? Since that number is supposed to be zero or positive, maybe the state forms imported the -$8,444 but didn't have a function to keep it negative (since the number there shouldn't be negative).

The storyteller in my head says that this would make total sense of what happened. If you are single and claim yourself then the math lines up perfectly for there to be an $8,444 error.

Summary assuming you are single and no one else claims you as a dependent:

Line 43 on your form 1040 should be $0. Then this number should be used as your taxable income that the state is asking for.
Looking over the form and line 43, it shows $0. It is possible this -$8,444 can happen but I can't see it?

Ay yi yi taxes and numbers give me a headache.

 

Zacharias

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Looking over the form and line 43, it shows $0. It is possible this -$8,444 can happen but I can't see it?

Ay yi yi taxes and numbers give me a headache.

If line 43 is $0 and the state form asks you to use your taxable income then it should also be $0. Which state are you filing in?
 
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sinon

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If line 43 is $0 and the state form asks you to use your taxable income then it should also be $0. Which state are you filing in?
That's what I figured, and how I filled out the forms on H&R but not how it appears sadly :(

State is Colorado but it's a Part Year because I moved.
 
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Zacharias

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That's what I figured, and how I filled out the forms on H&R but not how it appears sadly :(

State is Colorado but it's a Part Year because I moved.
Yep, it should be $0 on line 1 of the Colorado form. If that caused you to owe taxes in Colorado, you'll probably want to file an amended return to get that money back. Either alert H&R Block if they have a guarantee to get things rights or you could always file it on your own.
 
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sinon

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Yep, it should be $0 on line 1 of the Colorado form. If that caused you to owe taxes in Colorado, you'll probably want to file an amended return to get that money back. Either alert H&R Block if they have a guarantee to get things rights or you could always file it on your own.
Ahh, that's what I feared :(

Thank you for all the advice and info! I can get this sorted out now that I understand the problem lol
 

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Hey all so currently filing and i'm wondering if i am just inputting wrong or if this just sounds normal. I made about 3.7k from Mturk last year and have put in all my info through a Schedule C and through myfreetaxes.com's H&R block. It is showing federal wise that i would be owing around 500 Dollars but everything i have read has told me i shouldn't be paying anything for that amount. Sorry if i just misread somewhere or didn't understand. This is my first time filing.
 

Zacharias

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Hey all so currently filing and i'm wondering if i am just inputting wrong or if this just sounds normal. I made about 3.7k from Mturk last year and have put in all my info through a Schedule C and through myfreetaxes.com's H&R block. It is showing federal wise that i would be owing around 500 Dollars but everything i have read has told me i shouldn't be paying anything for that amount. Sorry if i just misread somewhere or didn't understand. This is my first time filing.
You probably don't owe any "income" tax. However, one of the bummers of self-employment work is that we still have to cover both the employer and employee portions of payroll taxes which amounts to about 15.3% of self-employed earnings. Unlike the income tax, there is no deduction when you file taxes to reduce the amount of self employment tax owed.

In your case of $3,700 in schedule C earnings, $500 is right in the ballpark of what you would owe for that self employment portion.
 

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You probably don't owe any "income" tax. However, one of the bummers of self-employment work is that we still have to cover both the employer and employee portions of payroll taxes which amounts to about 15.3% of self-employed earnings. Unlike the income tax, there is no deduction when you file taxes to reduce the amount of self employment tax owed.

In your case of $3,700 in schedule C earnings, $500 is right in the ballpark of what you would owe for that self employment portion.
As a "plus" if you don't get claimed as a dependent by anyone I think you could get something back as earned income tax credit. And you might get a little bit back from your state (but lol, mine was like $15).
 
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Quick Links to Clickhappier's Tax-Related Posts:

Since June 2014, I've spent a ridiculous amount of unpaid time trying to help turkers understand tax-related topics. There's a lot here to read, but this condenses years of my reading a whole lot more, and more complicated, material.
Try the 'feeling overwhelmed' getting-started summary if you're hesitant.
Hey, so I don't even know if you still look here, but I really need some help. I will pay you to just go through a free tax software and write down exactly where I'm supposed to fill in. I know credit karma has one, and I assume you probably know of a better one. can't really afford to spend hundreds on HR block.

Thanks!
 

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Hi, just checking that I didn't goof on something here.

Should the United Way H+R Block filing still be free? Ended up with premium or something trying to get a schedule C. Wanted to make sure I didn't do something wrong. (If so does anyone have another easy tax filing that actually is free?) Thank you, sorry if I'm being a dummy.