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.