Supplementing Your Income
People who are feeling the strain of the economy right now are probably wondering how to make money at home. But people who are pursuing this path need to be aware of some of the rules and regulations regarding this kind of activity. For one, check and make sure that you don’t need a business license to sell products or offer services. In some cases, you will need this important document.
Also, be aware that if you earn extra income, it will be accountable to the IRS. After all, just because it isn’t reported on your W2 doesn’t mean you don’t have to pay taxes on that income. Again, you should always check with the details of your specific endeavor, but generally, if you make more than $400 doing anything, you’re considered a self-employed entrepreneur and must pay self employment tax. If you’re trying to pad your income right now, be aware of this fact come April.