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

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.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

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

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