As of February of this past year I have been self employed and taking care of some of my boyfriends nieces and nephews. Prior to that I worked for an insurance company making about $2500 a month gross (so about 2 months of the year) Due to some issues with State Child Care assistance I didnt end up getting paid for 6 months of child care for 3 of the kids (lost about $6k which I wont get paid bc the mother cannot afford to pay me period. My mistake for treating family like family and not clients I will never do that again) The other kids I was paid by State care assistance and received about $6000 for 2 kids, I also participated in the cities Crisis care for families and was paid about $1500 by them. The food program reimbursed me about $1000 so far for the year. I received another roughly $1600 from random families I took care of off and on over the year.
I read that if you didnt make more than $10,000 net you do not need to file a return. While my numbers are great than $10k they are only gross figures. I have a TON Of deductions as well - Mortgage/utilities, toys, food, supplies, etc. So I would think my Net would be much less than $10k. Should I still file a tax return? I received probably $4000 net from my previous job before I quit in 2014.
I also am concerned that I may have more deductions than income - how will that effect my taxes? I assume this means I will have to report a loss?
Read more: Slow first year of self employment - do I need to file taxes?
