Small biz tax preparer here - one more thing to consider: if you live in a state with income tax, you'll need to report this income on your state return too. Some states also have different rules about minimum thresholds for filing business income. Also, while everyone is correctly pointing out that legally all income must be reported, the practical reality is that the IRS matching system won't flag unreported income if there's no 1099 filed. That doesn't make it legal to skip reporting, just explaining why some people "get away with" not reporting small amounts. But building good habits now will save headaches later if your business grows!

Great question! I went through this exact same situation last year with my small pottery business. Made about $900 on Etsy without any 1099 forms and was completely confused about what to do. Here's what I learned after consulting with a tax professional: Yes, you absolutely need to report ALL income regardless of whether you get a 1099 or not. The IRS is very clear on this - if you earned it, it's taxable income that must be reported. However, don't panic! Since you're running this as a business, you can deduct legitimate business expenses on Schedule C, which will reduce your taxable income. Things like: - Materials and supplies for making jewelry - Etsy listing fees and transaction fees - Shipping supplies and postage - Packaging materials - Portion of internet bill used for business - Business-related mileage In my case, after deducting all my pottery supplies, kiln firing costs, and Etsy fees, my $900 in sales became only about $200 in actual taxable profit. This kept me well under the $400 threshold for self-employment tax. The consequences of not reporting could include penalties and interest if the IRS ever discovers it, plus you'd be starting off your tax history with non-compliance. Much better to report it correctly from the start, especially if you plan to grow the business! Keep good records of all your expenses - even small amounts add up and can make a big difference in your final tax liability.

Great advice from everyone here! Just to add one more perspective - I've been doing private tutoring for about 2 years and it's definitely worth getting organized from the start. One thing I wish someone had told me early on is to keep receipts for EVERYTHING tutoring-related, even small purchases. Those $5 whiteboard markers, $15 workbooks, even gas receipts from driving to students - it all adds up over the year. I use a simple envelope system where I drop all tutoring receipts into one envelope as soon as I get home. Also, don't stress too much about the complexity! Yes, it's self-employment income and yes, there's extra paperwork, but for a $3,800 side gig, it's pretty straightforward. The Schedule C form looks intimidating but it's mostly just listing your income and expenses. Once you do it the first time, next year will be much easier. The most important thing is just being honest and keeping good records. The IRS isn't trying to trip you up - they just want to make sure you're reporting your income correctly. You've got this!

As someone who just went through this exact situation last year, I can confirm everything mentioned here is accurate. Your tutoring income is definitely self-employment income that needs to be reported on Schedule C. One thing I'd add is to start tracking your business expenses right away - even things you might not think of as "business expenses" can add up. For example, I was able to deduct a portion of my cell phone bill since I use it to communicate with parents about scheduling, and part of my home internet since I prep materials and research teaching methods online. Also, don't forget about the home office deduction if you have a dedicated space where you prep lessons or do administrative work for your tutoring business. Even if it's just a corner of a room that you use exclusively for tutoring-related activities, it could qualify. The key is documentation - take photos of your workspace, keep all receipts, and maintain good records from day one. It's much easier to stay organized throughout the year than to scramble to recreate everything at tax time!

This thread has been absolutely invaluable for understanding the real scope of tax burden in America! As a newcomer to this community, I'm blown away by the depth of analysis and real-world data everyone has shared. What's particularly striking to me is how this discussion validates the original intuition that total tax burden is much higher than most people realize, even if it's not quite the 50% originally guessed. The 30-40% range that emerged from multiple sources - tax professionals, people who've actually tracked their burden, and government data - seems like a solid answer to the original question. The insights about regional variation creating massive differences in burden really stood out. A 15+ point swing between states means tax policy could be one of the most important factors in financial planning that many people completely overlook. I'm definitely going to factor this into any future relocation decisions. I'm also fascinated by how much tax planning sophistication can impact your effective rate. The idea that two people with identical incomes could have rates differing by 5-8 percentage points just based on their knowledge and planning is both empowering and concerning - it suggests there's real opportunity for optimization but also that the system may be inadvertently regressive. The "tax on tax" concept and all the hidden fees embedded in daily transactions were complete eye-openers. I had no idea how many layers of taxation exist in something as simple as filling up your gas tank or paying your phone bill. Thank you to everyone who shared their actual numbers and professional expertise - this is exactly the kind of comprehensive analysis that helps people make truly informed financial decisions!

This has been such an incredibly comprehensive and enlightening discussion! As someone new to this community, I'm amazed by the depth of real-world experience and professional insights shared here. What really stands out to me is how this thread systematically dismantled the common misconception that we only pay our federal income tax rate. The consistent 30-40% total burden range that emerged from multiple independent sources - tax professionals, people tracking their actual payments, and government data - provides a much more realistic picture than the simplified narratives we usually hear. The regional variation insights were particularly eye-opening. Learning that tax burden can swing 15+ percentage points between states completely changes how I think about career opportunities and cost of living comparisons. It's almost like different states have entirely different economic systems from a tax perspective. I'm also fascinated by the "tax planning gap" discussion - the idea that financial sophistication can create 5-8 percentage point differences in effective rates between people with identical incomes. This suggests both opportunity for optimization and a concerning equity issue where access to good tax advice creates unequal burdens. The examples of hidden taxes embedded in everything from utility bills to gas purchases really opened my eyes. I just reviewed my monthly bills and found nearly $30 in government fees and taxes I never noticed - that's $360 annually in "invisible" taxation. I'm definitely going to start tracking my total burden using the methods suggested here. Based on all the examples shared, understanding your true tax situation seems essential for making informed financial decisions. Thank you to everyone who shared their actual numbers and professional expertise!

dont forget to check if you got all your stimulus money from last year. if you missed any you can claim it on your taxes

With your income and 3 dependents, you're looking at a solid refund! The EITC alone could be around $7,430 as mentioned, plus you'll likely get $6,000 in Child Tax Credits ($2,000 per kid). So potentially $13k+ total refund depending on your withholdings. For tax prep, I've had good luck with Credit Karma Tax (now Cash App Taxes) - completely free for federal AND state. Just make sure you have all the documentation ready like SSNs, school records, etc. Good luck! 🍀

I work in a university bursar's office (not at your school) and I can tell you that your school's stance is unusual but not unheard of. One workaround that sometimes helps: check any financial documents you received from them - sometimes the EIN appears on receipts, financial aid award letters, or even in the footer of official correspondence. Also, try calling and specifically asking for the "accounts payable" or "vendor relations" department instead of student services. These departments often have the EIN readily available since other businesses need it for their own tax purposes when paying the school.

I went through this exact same headache last year with my online certification program! Here's what ultimately worked for me after trying everything else mentioned here: First, I did find success with the IRS Tax Exempt Organization Search that Omar mentioned - but you have to try different variations of the school name. My school went by an abbreviated name with students but was registered under their full legal name with "LLC" at the end. If that doesn't work, there's another angle: check if your school is accredited by a recognized accrediting body. You can often find their EIN through the accreditor's database or the Department of Education's database of accredited institutions. One thing to keep in mind - even if you use the zeros method that others mentioned, make sure you're claiming the right credit or deduction. At $14,500 in tuition and depending on your income, the Lifetime Learning Credit could save you up to $2,000, which is probably better than the tuition deduction. The American Opportunity Tax Credit unfortunately doesn't apply to graduate programs. Also, keep detailed records of everything - not just payment receipts but also your enrollment verification, course syllabi, and any communication with the school about their refusal to provide the EIN. This documentation will be crucial if the IRS has any questions later.