Tax Question: I only made $5,000 do I still have to file taxes?

Yes. Running your own business is considered "self-employment". Even if your earnings were only $400, you would be required to file and to pay self-employment tax. Your self-employment tax will be slightly over $700. If this business was your only source of taxable income during 2008, then your income tax will be neglible or none.

You need to pay self-employment tax in the United States of 15.30% which is the equivalent of the combined contributions of the employee and employer under the FICA tax. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare. The social security portion of the self-employment tax only applies to the first $97,500 of income for the 2007 tax year. There is no limit to the amount that is taxable under the 2.9% Medicare portion of the self-employment tax.

So you owe about $750 but no actual income tax

Did your business expenses cost more than $5000 ? You may still have to speak with an accountant. If your in business you should at the very least have business Tax Software.

YES.

You are self employed. You must file your tax return if your self employed income is $400 or more. You will report your income and expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. Read: http://taxipay.blogspot.com/2008/04/tax-filing-by-...

Everyone has to pay taxes on earned income. I only made $8000 and I still had to file.

you're technically meant to record a refund for something over $600, so particular you need to. i comprehend which you will acquire a credit for having a newborn, yet i'm undecided if it fairly is a state or federal refund. it would be properly worth employing and seeing what they might supply you. you will possibly no longer arise to you normall might considering you probably did no longer have any withheld.

you have to file to a refund of the quarterly taxes you hopefully paid

You will still have to file a return, even if you lost money.

Why not? You wouldn't owe any taxes. Woudn't you get a refund from your standard deduction?

well i made 3000$ in 6shitty months and alll i got bac was $270

:(