USA Do I need to report under $400 income?


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Hello,

I am married, under 65, and unemployed. In 2017, I made some artwork for a small business that I sold for $50. I am getting conflicting information online about whether or not we need to report this on our taxes. Some say if it is a hobby, I need to report even if it was a $1. I don't necessarily consider it a hobby as I made the art with the intent to sell it. Another website said that if it is freelance or small business work, I only report if I made more than $400 income. I do not have a business license, so I'm not sure it this means the work is classified as freelance.

Do we need to report the $50, and if so, how should we do that? Thanks for your advice.
 
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Drmdcpa

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If you have a filing requirement, you are required to report all income, period.
 
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One must report any income, even if it is freelance work, to the IRS. If you make more than $400 a year than the IRS requires you to pay self employment taxes.
 
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Make sure you report all income on taxes because if the IRS find out about not filling income then they will come after you. They can audit you then fine you and if it is bad enough there might be jail time involved. Most of the time only fines though.
 

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