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I am a booth renter and was wondering about paying taxes. I have a tax accountant that we use for personal taxes. My question is, how much can I make before I have to pay taxes? I have heard if I make less than $5000 in a year, I don't have to pay. I will ask my tax person but was just wondering if anyone knew.
Depends on your dependents, expenses, etc...I wouldn't say if you make less than 5k you don't pay taxes, because you are suppose to pay taxes period. It's best to talk with your accountant & when they do your taxes they will tell you what's owed.


I believe it's $600 or less a year as to filing, but you will owe some tax on $5k a year. Not much but some. If you file joint taxes, they can keep what you owe fromthe withholdings on the w2 of the joint filer. So whether you have someone prepare your taxes or if you buy software like turbo tax ( which is what I do, as a booth renter the sched C is simple ) the profit vs expenses will be figured out and your taxable income will be determined to find out how much you owe if any. So many factors go into it.
The 600 is that's what you have to make at least that amount for a 1099 to be required...but you are still required to report income even if it's less than 600 (makes you wonder how they enforce that though).
Also remember that you are supposed to give the owner a 1099 for the rent you paid to them.
about the comment made by Tn Nail Lady, I wanted to add to that....I've found that if the person who owns the salon is incorporated, then I don't have to give them a 1099. This discussion came up on here a few years ago, and that's when I was told this by the lady that owns the salon and a couple of other tax professionals.