Hi Carol.Thank you for all the help you have already given our homeschool community!There is a homeschool co-op that allows teachers to charge the parents $0-$45 per student. As a teacher, how would I report any net income on my income tax return? Payments are made directly to me, the teacher.
Lynn (New York)
You report all your income and expenses on a Schedule C or the shorter form Schedule C-EZ as part of your federal form 1040.
The net amount (Income less all your business expenses) is carried onto page one of your 1040 and added to your other income from W-2s etc.
If you made more than $400 in net income (your income less any expenses) in the year, you will also have to fill in a Schedule SE and pay Self-employment tax (it’s Social Security and Medicare taxes for self-employed people).
Hope that helps!
Carol Topp, CPA
Homeschool leaders: If you hired and paid a teacher in the past year you may need to file some paperwork with the IRS! The deadline is January 31 to give your workers a 1099-MISC or W-2.
Find out what to do in my book Paying Workers in a Homeschool Organization.