Self-employment income

pianoswim
Mon, 02 Apr 2018 17:34:14 +0000

Hello all,

Back in 2016, I made a net profit of <$400 teaching kids piano in my neighborhood. On the IDOC, I filed a W2/1099 substitute for this income.

This is what Cornell sent to me today:

"According to IRS Publication 501, individuals must file a tax return if net earnings from self-employment were greater than or equal to $400. To determine whether you must file a 2016 tax return, please complete IRS form Schedule C first. If, after deducting expenses related to your self-employment, your net earnings are $400 or more, you must file a tax return with the IRS and submit a copy to our office.

If your net earnings are less than $400, submit a copy of your Schedule C to our office, along with an explanation of how you were paid, such as “paid in cash” or “paid by check”, etc."

I am confused. Do I include it in my parents’ 2016 tax return and refile/send to Cornell, do I just submit a Schedule C to Cornell, or something else? I’m not very sure because I am a dependent of my parents and don’t need to file a tax return to the IRS/report profits less than $400. Thanks!!