As a self-employed individual, you are required to file taxes if you meet certain income thresholds. For the tax year 2020, if you are a single filer under the age of 65 and your gross income was at least $12,400, you are required to file a federal tax return. If you are over the age of 65, the income threshold increases to $14,050. However, if you are self-employed, you will also need to pay self-employment taxes in addition to income taxes. The self-employment tax rate is currently 15.3% and applies to net earnings (income minus expenses) from self-employment activities.
It is important to keep accurate records of your income and expenses, as well as any applicable deductions, in order to properly file your taxes. You may also need to file estimated taxes throughout the year to avoid penalties for underpayment.
It is important to note that these requirements may vary by state, so it is recommended to consult a licensed attorney or tax professional for specific guidance. Additionally, if you have any doubts or questions about your tax obligations or filing requirements, it is important to seek legal advice before making any decisions or taking any actions.
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