Mr R:  Contact an SBA SCORE associate. They can help. They are retired professionals that offer free advice.
2007-10-22 19:11:17

Gary:  You would be treated as a small business and you report all income and expenses for your business. There are separate forms to use and I highly recommend that you try to get some education about tax reporting. You can go your local IRS office and get a Schedule C plus the Instructions. Also get the following forms: 1040, Schedule SE (Self-Employed), 8829 (Expense for Business Use of Your Home) to name a few. This is only federal forms. You probably need to go your State Revenue Office as well. You can contact your Small Business Administration (SBA) for free info. Consider to take a tax class at your local community college (you do not have to be degree seeking) and also consider on taking some business classes. Good Luck
2007-10-22 19:20:35

Judy:  Yes, you only have to file if you make a certain amount, but that amount is quite low ($400) since you will be self-employed.
2007-10-22 19:43:44

MukatA:  1. This will be your self employment income. You must file return if your self-employment income is $400 or more. Your self-employed income is subject to self employment tax at 15.3%. For this, with your Form 1040, you attach Form 1040 Schedule SE. 2. With your tax return you will also file Schedule C (Form 1040): Profit and Loss from Business (Sole Proprietorship). You can deduct your business related expenses on schedule C. On your net income from self-employment (that is from schedule C) you pay 15.3% self employment taxes.
2007-10-22 23:47:13