Today TaxMama hears from Melissa in the Tax Parlor, who tells us , “Hello! I am a real estate agent (independent contractor) and I was just offered a very part time consulting position for a local non-profit neighborhood organization. I will be researching the neighborhood real estate market and reporting back to the non-profit. This is a temporary, six month position and I will be making less than $2,000 when all is said and done.
What are my tax implications? Do I need to get an EIN # or can I just use my SSN? I accepted because I want to help but will I be taxed to death (since I already am)!”
Oh no! You’re being taxed to death!!!
Do you know what that means?
It means two things:
1) You’re making a LOT of money.
2) You’re not meeting with a tax pro to do some tax planning – or your taxes would be much lower.
So, please, do meet with someone. I know that with just a little bit of effort, you could probably cut your taxes by about a third.
Back to your question – no, you don’t need a new taxpayer ID number. You can definitely have them pay you under your Social Security number. Just add the income to your real estate income. You’re doing similar work – researching your own community’s market, and getting paid for it, for a change.
And remember, you’ll find answers to lots of questions about freelance jobs and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
To make your comments, please visit TaxMama’s Parlor at TaxTwist.com.
- Ask TaxMama :: Where taxes are fun and answers are free
- TaxTwist.com :: Where TaxQuips will be moving & You can add your comments
File Download (1:37 min / 0.4 MB)