I desire to become self employed as an affliate marketer through the Amazon Affiliate program. I know they desire a tax ID and I believe this is for tax reporting purposes? With earnings such as this am I correct to believe that you receive a form once you exceed $600 for a calendar year? Please clarify for me because I believe situations like online selling and the like are required to reported to the government as taxable income once you exceed $600 and you are considered a business rather than a hobby. (Is that true?)
My question is I know you have to pay taxes based on your tax bracket. And I know you have to pay self employment taxes. I am very unclear on self employment taxes. I currently receive SSI and if I made say $100 a month I believe this would be in the 15% bracket, but am not sure how much a percentage the self employment taxes would be. What percentage would employment taxes be for a 15% tax bracket? Is there an online calculator that would make this easy to calculate and get a good figure? Also how would charitable donations be figured in? (I donate $30 a month) I am hoping to learn this information so that I would have a better idea of how to do my taxes or understand them if I had them done by someone else.
Are self employment taxes different from income taxes? I heard they are 12.9% I believe and I wasn't sure if you are in the lowest tax bracket if you have to add that tax % to that one. (ie 15 to 12.9. Or is just 12.9% you would pay as a self employed person?) I am a newbie at this and am trying to understand how it works.
PS I was told on another site to seek tax advice about this. I DON'T HAVE THE MONEY TO GO TO SOMEONE so PLEASE give me some real advice on this. I receive SSI, Food benefits and live in Section 8 housing. The way things are set up, my income will be severely affected by self employment and the taxes will take a a chunk that I must be aware of up front. Please don't give me anything else, but the advice I requested as that is the advice I need for my situation.
Thanks