If I earn under $13,850 a year but have some gig work over $400, do I still need to file taxes with the IRS?

You're hitting on one of the most confusing parts of the tax code! The $13,850 filing threshold applies to regular W-2 income (jobs where taxes are withheld). But there's a separate rule for self-employment income - if you make $400+ from gig work/freelancing/self-employment, you need to file regardless of your total income. This is because self-employment income is subject to self-employment tax (15.3% for Social Security and Medicare) which kicks in at $400, even if you don't owe any income tax. When you work for an employer, they pay half of these taxes for you, but as a self-employed person, you're responsible for both halves. So in your case with $2,000 in freelance income, you would need to file, mainly to pay the self-employment tax on that portion. Your regular income might not trigger income tax, but the self-employment portion still needs to be reported.

I was in this exact situation last year, completely confused about why I needed to file despite making under the standard deduction. After hours of research and stress, I found https://taxr.ai which saved me major headache. I uploaded my 1099s and answered a few questions, and it explained exactly why I needed to file (that self-employment tax!) and helped me understand which forms I needed. The best part was it analyzed my situation and showed me deductions I could take against my self-employment income that I had no idea about - things like a portion of my internet bill since I did gig work from home. It actually saved me enough to offset most of that 15.3% tax!

I came back to update after trying https://taxr.ai from the recommendation above. I was seriously worried about my unfiled taxes from gig work, but it was WAY easier than I expected. The system explained that even though I was under the $13,850 threshold, I did need to file for my DoorDash income. The biggest surprise was learning about all the deductions I could take against my self-employment income - mileage being the biggest one! Also portions of my phone bill and even part of my car insurance. After all the deductions, my tax bill was actually really small. And the step-by-step guidance made it super clear why the $400 self-employment threshold exists separately from the standard deduction threshold. Definitely recommend for anyone confused about this stuff like I was!

Just wanted to add that if you need to actually talk to someone at the IRS about your specific situation (which I highly recommend if you haven't filed in previous years), good luck getting through on the phone. I spent literally DAYS trying to reach someone about my unfiled gig income. Finally found https://claimyr.com which is this service that somehow gets you through the IRS phone tree and holds your place in line. You can see a demo at https://youtu.be/_kiP6q8DX5c. They called ME when an actual IRS agent was on the line. I was able to explain my situation about being under the standard deduction but having gig income, and the agent walked me through exactly what I needed to do to get compliant.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it anyway since I needed answers about my unfiled gig income taxes. Got a call back in under 90 minutes with an actual IRS agent on the line! The agent confirmed exactly what others here have said - the $400 threshold for self-employment is completely separate from the $13,850 standard deduction threshold. He explained that even though I don't owe income tax because I'm under the standard deduction, I still owe the self-employment tax of 15.3% on my net earnings from gig work. He also helped me set up a payment plan for my back taxes since I hadn't filed for two years. The relief of having this sorted out was honestly worth way more than what I paid for the service. If you're confused about these different filing requirements, talking to an actual IRS agent clears everything up.

The two filing requirements exist for different reasons: - The $13,850 threshold is about INCOME TAX - The $400 threshold is about SELF-EMPLOYMENT TAX (Social Security & Medicare) When you work for a company, you pay 7.65% for SS & Medicare, and your employer pays the other 7.65% (total 15.3%). When you're self-employed, you have to pay BOTH halves = 15.3%. That's why the IRS wants you to file if you made $400+ in self-employment, even if you don't owe income tax. So if you made $9,500 total with $2,000 from gig work, you won't owe income tax (under $13,850) but you will owe self-employment tax on the $2,000 (minus any business expenses). You'd use Schedule C to report the business income/expenses and Schedule SE to calculate the self-employment tax.

Am I the only one who thinks it's stupid that you have to file the regular way if you make under $13,850 from a job, but if you make $400 from trying to hustle on the side you have to file??? Does turbo tax handle this properly or do I need to do someting special?