How much money do i have to make in order to pay taxes on it?

I get paid by banks for cutting bank owned properties, and they sent me a tax form in the mail. I only got about $2,000. Do i have to pay taxes on what they paid me, or did i not make enough money and don't have to pay taxes on it.

How much money do i have to make in order to pay taxes on it?
If this was your only income source, then no you don't have to pay taxes on it. If this is merely a part of your total income, you are required to report it on your tax forms and pay whatever tax bracket on it that your total income falls into. For instance, if without the additional check you made $30000 and fell into the 20% tax bracket, you would normally owe $6000 in taxes, but with the check, your income is now $32000 and you would therefore now owe $6400, or an additional $400 in taxes. You are required to report the income, unfortunately...the government doesn't care where you got it from if it was earned and not stolen.
Reply:You will have to report it. The bank has records that they paid you the money, so if and when they audit the bank they will take your name down and look at your history.





Waitresses have to pay taxes on their tips, but no one ever reports the cash they are given, just the credit card tips, becuase that is a record that can be traced back to them.





Just to watch your own back, I would report anything, but especially money that someone else has records of.
Reply:This sounds like you are self-employed in this endeavour. Since it's over $400, you MUST file and pay any taxes due. If it was your only income you won't owe any income tax but you will have to pay self-employment taxes. If you have other taxable income then you'll pay income taxes on it as well.

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