I know this section doesn't get a lot of traffic but I was hoping to get some folks' opinions on doing some freelance math tutoring for the higher maths (anything from algebra to calc 3) out of my own home. Essentially I would be running an "in-home office" "business" which will obviously be in another category of taxes.

Since this would be a relatively straightforward "business" (no overhead really, except maybe an umbrella policy) I was hoping some people here are familiar with what I might be able to take home versus what I'm going to need to give to uncle sam. I'm not looking for specifics or anything, but just a ballpark feel of how it should work out.

The reason I ask, is because I want to do this because I always enjoyed tutoring math and it's something I felt was rewarding; while at the same time I'm thinking it could support a little extra income for toys. But if I'm going to be making next to nothing at the end of the day, it may not be worth it to me. I will still hold my full-time job which takes absolute priority. This would be a few nights a week in the evenings, "on the side" per-say.

 

I dont think you have to report any income (or if you do there is no taxes) if its less then $5000? annually. I could be off on the exact number but thats what I recall. I dont know how much you plan on making.

 

I'm estimating between $8k-$12k in income from this, annually. I already have some people I believe would be easy clients, I've talked about it in conversation as something I've wanted to do and they were on board (with their high school children). I have excellent references from tutoring in the past and I think the fact that I'm a successful engineer will help gain confidence in my abilities (albeit being an engineer and being a teacher are two totally different things lol).

 

just call your tax guy or accountant would be able to tell you in a few mins. depends how much you already make but I would think 35% to be safe. if its cash I wouldn't report it

 

Yea I need to just look up some tax law. Last time I went to accountant for my taxes I didn't learn anything more than I already knew, mostly because my father is an old CPA who just hasn't been in accounting for a while (other than running his own small businesses).

And taking cash for something like this and not reporting it is way too risky. That's how you end up in jail: "hiding" income from uncle sam, ESPECIALLY business income. I have too many positive things going on to risk going to jail for keeping a few grand a year from uncle sam......

 

yeah very true if its a legit business. so your dad could probably give you an idea.