I have been issued a form showing, if correct, I owe 1,200 dollars on my income tax from 2008. I was an independent contractor at that time and only made 6,000 dollars. I had looked into it and read I didn't owe any income tax unless I made over that amount. I have a choice to disagree with the bill and mail it in, but I'd greatly appreciate knowing what my options are. Thank you.
1 Answer from Attorneys
Because I have not had the chance to see your return, I can only guess that the tax bill
is for self-employment taxes on the amount earned.
If $6,000 is all you earned during the tax year, would probably would not have owed income
taxes, but self-employment taxes are calculated separately.
Any business expenses you had during the same tax year (e.g., mileage, tools, etc.), might reduce the amount the tax was based on and reduce the total amount owed.
Good luck to you.
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