Is there an income threshold under which I don’t need to pay taxes?

You make a small amount each year and wonder if it even counts for tax purposes. The rules feel confusing and sometimes contradictory.

The IRS generally requires individuals to report all income earned from business activities, regardless of the amount. While certain thresholds (like the $600 1099-K limit) trigger automatic reporting from payment processors to the IRS, they do not necessarily define a vendor's individual tax liability. Additionally, while business expenses and reinvestments may reduce taxable profit, they do not automatically eliminate tax obligations. It is important to consult IRS Publication 334 (Tax Guide for Small Business) or a CPA to understand how self-employment taxes and income reporting apply to your situation.

Keep a simple income ledger and review current IRS and state guidance each year. If your income is near a threshold, consider speaking with a tax professional to confirm your obligations. Clear records help you file accurately and avoid surprises.