As a minor, do I need to file taxes with $2000 income from freelance work?

Yes, you do need to file taxes even as a minor if you have self-employment income over $400, which your $2600 definitely qualifies for. The IRS doesn't have an age exemption for self-employment taxes - they care about the income, not how old you are. Here's what's happening: Stripe is required to issue you a 1099 form because they processed payments to you. They'll also send this information to the IRS, so the IRS will know you earned this money regardless of whether you file or not. For 2024 income, you'll need to file both Form 1040 (the regular tax return) and Schedule SE (for self-employment tax) by April 2025. You'll likely owe some self-employment tax (about 15.3% of your net earnings), even if you don't owe regular income tax.

I went through something similar last year! After trying to figure everything out myself and getting totally confused with the 1099 forms and self-employment stuff, I found this service called taxr.ai (https://taxr.ai) that really helped me. You can upload your 1099 from Stripe and it walks you through exactly what you need to file and how to do it when you're a minor with side income. The best part was that it explained how self-employment taxes work when you're still claimed as a dependent on your parents' taxes. It showed me which forms I needed to fill out and even calculated what I owed. Might be worth checking out if you're trying to handle this yourself.

Just wanted to update - I checked out taxr.ai after posting here and it was actually super helpful! I uploaded my 1099 from my game development income and it automatically identified that I was under 18 and showed me exactly what I needed to do. Turns out I could deduct my new graphics tablet and part of my internet bill as business expenses which brought my taxable income down a bunch. I filed my own return without my parents needing to get involved (though I did end up telling them after I filed just to be safe). The whole process took like 30 minutes and I already set aside the money I'll owe for self-employment tax. Definitely less stressful than I thought it would be!

If you're also getting stressed about actually contacting the IRS with questions (I know I was terrified when I first had to file as a minor), check out Claimyr at https://claimyr.com - they can get you through to an actual IRS agent without the usual 2+ hour wait. I spent days trying to get through to ask questions about my 1099 situation and was ready to give up until I used their service. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically they navigate the phone tree and wait on hold for you, then call you when an actual human at the IRS picks up. When I was trying to figure out how to file with my internet business income, it saved me so much stress.

I'm honestly shocked but I have to admit I was wrong. After seeing the responses here, I tried Claimyr yesterday because I was desperate to get some answers about my own 1099 situation. I expected it to be a scam but within 35 minutes they actually connected me with an IRS representative! I was able to get clear answers about filing requirements as a minor with self-employment income. The agent confirmed everything others have said here - if you made over $400, you need to file regardless of age. They also explained how it works with being claimed as a dependent on parents' returns. For what it's worth, the agent also mentioned that ignoring the 1099 is a really bad idea since the IRS automatically gets that info from Stripe and will eventually follow up if you don't file.

Hey, I went through this exact situation last year when I was 17! Some practical advice: 1. Yes, you absolutely need to file if you made over $400 in self-employment income 2. You can use free tax software like FreeTaxUSA or Cash App Taxes to file yourself 3. You only need to file Schedule C and Schedule SE with your 1040 4. Keep in mind you're still a dependent on your parents' return most likely 5. You'll owe self-employment tax but probably no income tax Also, don't stress too much about your parents - mine actually ended up being proud that I was earning money and taking responsibility for taxes. They helped me understand some deductions I could take for my business expenses too.

Just wanted to add something important - make sure you track your business expenses! That $2600 isn't all taxable if you spent money to earn it. Did you buy any equipment? Software subscriptions? These can be deducted from your income before calculating taxes. I made about $3000 last year from my Etsy shop, but after deducting all my supplies and shipping costs, my taxable income was only about $1800. That saved me a decent amount on self-employment taxes.

I'm in a similar boat - made around $1,800 from tutoring other kids in my neighborhood and now I'm panicking about taxes. Reading through all these responses has been super helpful though! One thing I want to add is that you should definitely keep good records going forward. I wish I had tracked my expenses better from the start. Things like if you had to buy any coding books, pay for software licenses, or even gas money driving to meet clients - these could all potentially be business deductions. Also, don't beat yourself up about not knowing this stuff. Most adults don't understand taxes either! The important thing is you're asking the right questions now and taking care of it properly. Better to file late than never file at all, but you still have plenty of time before the April deadline. Good luck with everything - sounds like you've got some solid options with the tax software people have recommended here.