The Grass Doctor

How do I pay taxes for a lawn mowing business?

I am just going to mow a few lawns for some of my neighbors. What are the rules for paying taxes on this? Does the $3000 a year refer only to the specific business, or to all the money that I make from any source?

Public Comments

1. you have to make over $3000 to file taxes so you don't have anything to worry about. don't let anyone tell you that you can make money online, those are all scams!
2. You are obligated to keep records of income and expenses. You are required to report that portion of profit or loss on your income taxes. You are required to make estimated quarterly payments to the Feds and State on the expected profits you will make. Here's a link to help from your favorite uncle.
3. As an independent contractor (if you were a lawn mowing business, you would almost certainly be that), you need to report, and pay FICA taxes, on $400 or more made in a year. Easiest is to be a sole prop, Sch-C and Sch-SE, going on to 1040.
4. You are self employed or independent contractor. 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-self-employed-sole.html
5. Not sure where people are getting their numbers - the limit is $400, not $600 or $3000. The $400 would be all of your income from self-employment or independent type activities, not including W-2 income. If your total income including both independent and W-2 income meeting the limit where you'd have to file though, or if you do file for any reason, you have to show ALL of your income including the lawn mowing.