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Subject:  Re: tutoring and taxes Date:  2/14/2007  7:04 PM
Author:  TMFPMarti Number:  92171 of 132792

I'm starting to tutor several students. I will be getting paid.

I guess I need to know how to handle taxes on this income. I know most often other tutors I've talked to have considered this pretty much under the table, but that makes me kind of uncomfortable and one parent has just asked me how to handle taxes, if he needs to report anything.

Let's hope the other tutors aren't teaching ethics.

It's self-employment income to you unless you're working through an agency that pays you as an employee. I'm not aware of any responsibilities of the parents other than paying you.

Your responsibilities include tracking your income and expenses, reporting same on Schedule C of the 1040, which feeds Schedule SE, where you compute self-employment tax, and, perhaps, making estimated tax payments.

A starting point for your homework would be IRS Publication 334. Don't let the title put you off. You are a small business even if you don't think of yourself as one. Other publications of interest would be 505, 535, and 560.

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