The Tax Questions Blog

Question: What is the difference between self employment and misc. income?

What is the difference between self employment and misc. income? How would I know if I need to pay a self employment tax on some consistent side work that I'm doing? (Making under 10,000/year). I'm trying to figure out how much $ to set aside for this.

Thanks!

Answer: Misc income is income from something other than working, like prizes and gambling winnings, and sometimes for one-time things like jury duty. The income from your side job is self employment income. Figure tax of 15% plus whatever your income tax bracket is for the feds, plus whatever your state and local tax is. And you don't just set it aside, you need to make quarterly estimated payments.

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Self Employment Tax Tips : Tax Tips for Ministers

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