How do I file my taxes (read all)?

I have never filed taxes before and last year I started writing for a website called Demand Studios. I made about $960 for the 2008 calendar year and they sent me a 1099 form stating my non-employee compensation. They sent one for me to give to the IRS and the other for my records. I am so confused on what I am supposed to do with this. Could someone please help walk me through the process I am going to have to go through to file? I have no other income besides child support. Isn't child support non-taxable? Does that mean I do not have to claim my child support?



You will have to file an income tax return since you have self-employment income of at least $400. You will file a form 1040, with a Sch. C to show your income and to deduct any qualifying expenses you have. Then if your net income is at least $400 you will file a Sch. SE to pay your self-employment taxes. These are your Social Security and Medicare taxes.





You do not claim child support as income on your tax return. If you are not able to be claimed as a dependent by anyone else, and have a qualifying child, you could possibly receive Earned Income Credit on your net income. This could offset the SE tax you will owe. Your income is too low to owe any federal income tax.





I hope this helps.





Laura H ?H&R Block ?Senior Tax Advisor 5


**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.




You file Form 1040 and attach Schedule C or C-EZ to report your self-employment income and any business expenses. Any reasonable and necessary out of pocket expenses you incurred in generating that income are deductible. If the net profit is $400 or more, attach Schedule SE to figure the self-employment tax.





If this was your only income you won't owe any income taxes (the child support is not taxable and isn't reported on your return ) but you will potentially owe up to $135 in self-employment tax.





If your filing status is either Single or Head of Household and you are not a dependent you may be eligible to claim the Earned Income Credit based upon the net income on Schedule C as long as your child lived in your home for more than half of the year. That would be up to $332 if you have only one child or $390 if you have 2 or more. That will be enough to offset the self-employment tax and leave you with a small refund.




Child support is considered support for the child and thus is not taxable income.





You can file a Schedule C-EZ and a form 1040 along with a Schedule SE. Don't forget to file your state return





Any expenses you have as a writer can go on form C-Ez and your self employment tax will go on form schedule SE. You probably qualify for the earned income credit.





Are you sure you want to do this. Being self employed is a killer comes tax time especially if you plan to earn $20,000 to $30,000 doing this.





I would file an SS8 to see if self employment is what you really are.