Do I need to report income under $300 from side gig?

Wait, so what counts as "business expenses" for something small like this? Could they deduct the cost of materials for the jewelry?

Yes, absolutely! Business expenses would include the cost of all materials used to make the jewelry - beads, wire, chains, clasps, etc. You can also deduct tools you purchase, packaging materials, shipping costs, and even a portion of your internet bill if you're selling online. If you're using part of your home exclusively for your business (like a dedicated workspace for making jewelry), you might also qualify for a home office deduction, though that gets more complicated and might not be worth it for a very small business.

Does it actually work for super small income like this? I'm making like $25 a month from online surveys and don't know if that counts.

I'm kinda skeptical about AI tax stuff... How does it know all the state rules too? Like California has different rules than Texas right?

It absolutely works for small income situations - that's actually what it specializes in. It asks about your specific income sources and amounts, then tells you exactly what applies to your situation, even for small amounts like online surveys. The AI is trained on tax codes from all states and gets updated with new regulations. You just tell it where you live, and it factors in your state's specific requirements alongside the federal ones. So yes, it knows that California has different rules than Texas and adjusts its guidance accordingly.

Wait, how does this actually work? Why would I need to talk to the IRS when I can just google the answer?

This sounds like a scam tbh. Why would I pay some random service when I can just wait on hold with the IRS myself? Plus how do you know if the answer they gave you is even right?

Google often gives conflicting or outdated information - I found three different answers about the threshold for hobby income vs. self-employment income. Speaking directly to an IRS agent gives you a definitive answer specific to your situation. I was skeptical too initially! The difference is Claimyr doesn't replace the IRS - they just hold your place in line and call you when an agent is available. The IRS wait times were 2+ hours when I called, but I got a callback in under an hour. The advice comes directly from an official IRS agent, not from Claimyr, so it's just as authoritative as if you'd waited on hold yourself.

Thanks for mentioning this! Do you know where I can find a list of state requirements? And does anyone know specifically about Arizona rules?

You can find state requirements on each state's department of revenue website. They usually have a section specifically about minimum filing requirements. For Arizona specifically, you generally need to file if you're required to file a federal return OR if your Arizona gross income is $15,000 or more. But remember, that self-employment federal threshold of $400 would trigger a federal filing requirement, which would then require an Arizona return too. If you're staying under $400 in net self-employment income, you should be okay for both federal and Arizona.

As of 2025, payment apps like PayPal and Venmo are required to report to the IRS if you receive more than $600 in a year through goods and services payments. They'll send you a 1099-K form. But even if you're under that threshold and don't get a form, you're still technically supposed to report all income regardless of the payment method.