Is there a minimum income threshold for paying taxes as a self-employed contractor?

by Joseph A. Pancerella, CPA | Nov 29, 2018

I worked as a self-employed contractor this past year, but made only $5,200. Is there a minimum income threshold for paying taxes having earned only $5,200? If so, would that place me in the 10 percent tax bracket? I am single, 61 years old, with no children.

If this is your only income, there will not be income tax for federal purposes. There will, however, be self-employment tax assessed. You will be required to file an income tax return for 2018.  

Depending on where you live, there could be local tax implications as well.

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Answered by: Joseph A. Pancerella, CPA, is managing director of Pancerella & Associates LLC in Reading, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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