If I transferred money ($240) to my bank from paypal and cashapp would it be taxed?
I do tarot readings for people here and there. Its not a full on business, would I have to do something for my taxes with it?
- roderick_youngLv 74 months agoFavorite Answer
Check the instructions for Schedule C. There's some limit below which you don't need to report business income. It used to be $400 total for the year. Other than that, even occasional or hobby income is reportable.
- StephenWeinsteinLv 74 months ago
If you were paid money to do something, then you must pay tax on it. It does not matter whether it is a business. It does not matter whether you transfer the money.
- Max HooplaLv 74 months ago
It's profit from a money making activity and taxable regardless of where you put the money.
- JudyLv 74 months ago
Yes, it's taxable self employment income for federal, and for state and local if your area has them.
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- Casey YLv 74 months ago
The transfer has nothing to do with it...you report your income on your taxes. Fail to and if they find this income (which they might) and you pay penalties and interest.
- 4 months ago
Yes, you owe income taxes on your income.
- Wayne ZLv 74 months ago
The transfer is not taxed.
However, the initial payment when you earned the money is.
You may not think that this is a business. However, the IRS does.
- A HunchLv 74 months ago
If you earn over $400 from any source during a year, then you have to report all income. It doesn't matter if you are paid via paypal, cash, check or even bartering.
If you work a regular job where you earned over $400 and then this, you are legally required to include on your taxes.
- babyboomer1001Lv 74 months ago
No. Tax is not charged on money transfers.