What is the IRS Fresh Start Program? The IRS Fresh Start Program is a program that is designed to allow taxpayers to pay off substantial tax debts affordably over the course of six years. Each month, taxpayers make payments that are based on their current income and the value of their liquid assets. By the end of six years, their tax debts should be paid off in full. Get help today - Free Consultation 850-725-5696.

This program simplifies the process of paying back hefty tax debts. It also helps people avoid many of the detriments of owing a tax debt to the IRS including: 

• Interest
• Penalties
• Tax liens
• Seizure of assets
• Wage garnishments

People who owe a tax debt of $50,000 or less to the IRS are qualified to initiate the Fresh Start repayment process at any time. When they apply for this program, they can choose one of three repayment options that are available to them. 

The IRS initiated its Fresh Start Program in 2012 and expanded it in 2017 to ease the financial burdens of taxpayers who owe up to $50,000 in taxes. It is available to both business owners and individual taxpayers. 

Moreover, the premise of its design took into consideration the hardships faced by people who experience circumstances like unemployment. Taxpayers who are unemployed for longer than 30 days may be eligible to have their IRS penalties waived. They also could have request a six month extension to file and pay their taxes without fear of costly IRS penalties. 
Repayment Options under the IRS Fresh Start Program The IRS Fresh Start Program offers three repayment options to taxpayers. All three options allow people to pay off their tax debts legally and satisfactorily. They also allow people to avoid further penalties and interest that could cause undue financial hardships. 

The first option available to people is called an extended installment agreement. An extended installment agreement is designed for people who owe $50,000 or less to the IRS. It grants taxpayers up to six years to pay off what they owe without incurring additional penalties and interest. It also stops IRS collection activities like wage garnishments, tax liens, and seizure of assets. 

This option is one of the most commonly utilized under the IRS Fresh Start program. The payments that taxpayers make each month will be based on how much money they currently make along with the value of the assets they have at their disposal. The payments are designed to be affordable so taxpayers can make them on time and without financial difficulties each month. 
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Mike McVay, IRS Fresh Start Program Authorized - 850-725-5696
Mike@MikeMcVay 

Back taxes are not an issue at our firm! 

3 Things You Should Do Immediately When The IRS Sends You “Notice of Intent to Levy”
​McVay Voted Best Tax Accountant in Pensacola for I.R.S.Tax Issues and
​Past Year Tax Return Filing Specialist.

The IRS sends you several notices before they actually seize your assets. The last one is a Final Notice Of Intent To Levy and Notice of Your Right to a Hearing which means your time is about to run out before your bank account can be levied by the IRS! The IRS can also garnish your wages or take other drastic collection action against you. The word “levy” means involuntary seizure or taking.

It’s a little confusing to tell when the IRS is about to seize assets because the second to last notice is also called Notice of Intent to Levy but it doesn’t advise you of your right to a hearing. This notice does not give the IRS the authority to take your assets like the last one.
​
Normally you will get a series of five notices from the IRS before seizure of assets can take place. Only the last notice

The law requires the IRS to give proper notice before that can levy your bank account: According to Internal Revenue Code Section 6330, the IRS is required to notify you in writing before levying, and include in that notice information telling you about your right to appeal this threatened collection action within 30 days. The second to last letter, also called Notice of Intent to Levy does not contain this notice of your right to appeal. Here is a link to the IRS website that explains what notice the IRS must give before levying.
The good news, as mentioned above, is that normally the IRS sends you five letters (five for individuals and four for businesses) before actually seizing your assets. These notices are about five weeks apart so that you have at least four or five months to prepare for the final notice. You should not be surprised when the day comes for you to take action to prevent drastic consequences from IRS collection activity. Here are the collection letters the IRS mails to individuals:

1. CP14 (Notice of unpaid taxes)
2. CP501 (Reminder of unpaid taxes)
3. CP503 (Second reminder of unpaid taxes)
4. CP504 (Notice of Intent to Levy) May seize state tax refund by stated deadline.
5. Letter 1058 or Letter 11 and other letters (Final Notice of Intent to Levy and Notice of Right to Appeal)

The first three notices are sent by regular mail and the final two by certified mail. Here are steps to take when you receive the last notice.

Three Action Steps To Take When You Receive the Final Notice of Intent To Levy:

1. First of all, read the notice carefully. It should state “Notice of Intent to Levy and Notice of Your Right to Appeal”. If it only states “Notice of Intent to Levy” it is not the final one giving the IRS the authority to seize your assets. If the letter does not give you notice of your right to appeal this collection action by the IRS you still have one notice to go before a levy can take place. Another way to know whether the notice is the one that gives the IRS the right to levy your bank account or seize other assets is the designation of the notice found at the top right of the notice. The final notice is an LT11 or L1058 (and others as well). The one designated as CP504 is the second to last notice mentioned above. This one does not give the IRS the right to levy because it does not contain a notice of your right to appeal this action by the IRS.
2. The next step you should take is notice the date when the IRS can actually take action to seize your assets. It is listed on the notice. Here is the language used and found around the middle, left side of the first page: (It isn’t in bold lettering which I have used to highlight the wording used.)We haven’t received a payment despite sending you several notices about your overdue taxes. The IRS may seize (levy) your property or your rights to property on or after April 1, 2017.
   In this example you need to take action by April 1, 2017 or risk a levy action by the IRS. If you ignore this deadline you might be dismayed when you try to get money from your ATM and realize there is no money in your account. Or your employer might tell you that a significant portion of your paycheck has been garnished by the IRS. Fortunately, you can prevent this from happening to you.
3. File an appeal. The third step to take when you receive this last Notice of Intent to Levy and Notice of Your Right to a Hearing is to file an appeal. This will prevent the IRS from actually levying your assets and give you time to consider your options. By filing an appeal you take the file away from the Collections Division and place it in the hands of the Appeals Division and this will normally give you several months to resolve your situation.

Sometimes, even without an appeal, you can contact the Collections Division of the IRS and try to work out a solution to prevent the IRS from levying your bank account or seizing other assets. There are a number of options you have to resolve your tax liability, including several forms of Installment Agreements, Currently Not Collectible Status, Offer-in-Compromise, a Partial Payment Installment Agreement, Abatement of Penalties, and sometimes elimination of tax debt due to expiration of the Collection Period allowed for the IRS to collect the amounts owed. There are other possible options available depending on the circumstances of each case.

Sometimes you need professional help. Depending on the amounts owed, your personal financial condition, and the accuracy of the IRS assessment of your tax liability, you might be better off hiring someone who deals with the IRS on a regular basis such as Mike McVay, I.R.S. Income Tax Specialist. 850-725-5696 * Mike@MikeMcVay.com
IRS laws and regulations can be confusing and most people will not be able to figure out their rights and settlement options when negotiating with the IRS. By consulting with an experienced IRS tax resolution specialist you can usually resolve your tax liability in your best interest. An Tax Accountant like Mike McVay at McVay Business Services, experienced IRS tax resolution specialist in Pensacola, FL is your best choice. Mike McVay has 5-star reviews and his knowledge is unmatched in the experienced IRS tax resolution specialist area. will represent you before the IRS so that you do not have to have any contact with the IRS.

McVay Business Services
Experienced IRS Tax Resolution Specialist
5336 N Blue Angel Pkwy
Pensacola, FL 32526

According to a Gallup poll, 39% of small business owners work more than 60 hours a week.
Don’t take your own time for granted. Not only does overworking lead to burnout, but every minute you spend on a task has a dollar equivalent.
First, start tracking how much time you spend per week on bookkeeping. Then, using an online calculator, determine how much your time is worth, and figure out how many “dollars” you spend on bookkeeping per month.
QuickBooks Services
Compare your “salary” as your own bookkeeper against the price of professional bookkeeping. Once you treat the time you spend bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.

Your books are never up to date

When you fall behind on bookkeeping, your books stop reflecting the actual state of your finances. That makes it harder (sometimes impossible) to understand cash flow and accurately gauge the health of your business.
For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract if from your revenue in order to determine how much profit you’ve earned in that time.
Which means you’re blind to how much money you’re actually making—and the steps you can take to increase your income.

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What’s more, if your books aren’t up to date, you’ll have a ton of catch up bookkeeping to do during tax season, making a typically stressful time of year even more difficult.

With a qualified bookkeeping solution, you can expect to receive monthly financial statements, so you’ll know where your money is going to and coming from.

You missed out on tax write-offs

Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the cost of commuting.

That’s great news. Only, now you’re thinking about all the years you spent without filing this deduction, the extra money you could have saved, and how you could have spent it. Images of an in-ground pool dance in your head.

The sooner you know about small business tax deductions, and the sooner you take advantage of them, the sooner you’ll benefit.

Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In the process of doing so, they’re able to spot obvious deductible expenses such as mileage.

Ultimately, an accountant with experience in your industry is most qualified to give you comprehensive guidance regarding tax write-offs. But many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you out during the rest of the year.

Mike McVay, QuickBooks Accountant (Certified) with his CFO services covers all your bookkeeping, accounting, payroll and tax filing obligations with reasonable rates for small business.
Call Mike @ 850-725-5696
Mike@MikeMcVay.com 

Keep tracking simple 
QuickBooks is by far the best option for any small to medium size business. McVay has customized plans starting at only $99.00 per month that would take the burdensome details of running a business. McVay does most or all of the data entry, downloads, adjustments, reconciliations, month end close out and financials for a very reasonable price. Leaving you to increase revenues and profits. Mike McVay is a Certified QuickBooks ProAdvior located in Pensacola, FL. He works with clients all over the USA.

Ask for help
McVay has streamlined the bookkeeping process to allow for lower cost when doing your daily, weekly or monthly bookkeeping task. A good accountant will always offer good business and tax advice to keep you on the right track. Some accountants will offer free or included advice and consultations if you are a regular monthly client. 

Keep up with other great business ideas by visiting our blog. Mike McVay, Certified QuickBooks ProAdvisor and Tax Consultant. 850-725-5696 * Mike@MikeMcVay.com

When it’s time to outsource
​There are an abundance of reasons it might be time for you to outsource, whether it’s assistance with driving growth or if you’re just struggling to keep up with these tasks on your own.

Outsourcing bookkeeping and accounting tasks come with a ton of benefits, like improving data security, increasing valuation, and saving time. Regardless of how in-tune you are with your business, financial guidance makes it significantly easier to discern the best next steps to meet your specific and unique goals.
​
If you own a new or small business, it doesn’t necessarily make sense to hire a full-time accountant, which will cost you. That doesn’t mean, however, you have to do it all on your own. Bookkeeping and accounting are challenging skill sets to learn, and it’s important that your business’ books and accounting are done right so you can make smart decisions and grow healthfully.

What is Outsourcing?
When you outsource anything, you’re giving specific business operations to a company outside of your own.
It may seem odd. After all, if you started your own business, why would you want anyone else to have a part in it?

The reality is that finance and accounting outsourcing (or FAO) has steadily become more and more popular in the business world for many years now.

In fact, as of 2018, nearly $33 billion is spent worldwide on outsourcing finance and accounting processes.
It has grown nearly 25 percent in the past five years and doesn’t show any signs of slowing down.
As odd of a concept as it may seem, it’s certainly nothing to scoff at.

Mike McVay, Accountant - 850-725-5696
Mike@MikeMcVay.com

Outsourcing becomes more and more popular these days, as more companies all over the country are turning to different advisors for outsourcing their business activities, and it’s no wonder. There are many advantages of outsourcing, and in today’s economy, it becomes a common practice. Most small business owners need to focus on their business operations, customers and profits, not paperwork and computer entry.

Here are some benefits of using a BPO (Outsource Business Process Officer)
Reduced operating costs
If you figure your lost productivity and what it cost if your doing these task in house the cost benefits of outsourcing your bookkeeping is huge. Cost are much lower than you may think. Some accountants such as Mike McVay @ HomeMcVay Business Services use the latest technology to accomplish these taxes. Reducing your cost and increasing your small business profits. 
Focus on the core areas of the business
The most obvious and prominent benefit remains the fact that it saves money. Many of the companies and individuals that provide outsourcing services can get your job done at a lower cost
Skilled professionals
The biggest issues companies confront in their customer success programs is not collecting the data, but efficiently acting on it. This is the distinct skill set that specialized companies have been very successful in performing.
Access to the right toolsOutsourcing rules out the need for infrastructure costs as the outsourcing partner takes care of the business processes and therefore develops the infrastructure needed for providing successful accounting and payroll programs.
Thorough analysis and reportsA thorough analysis of your business journey is essential when it comes to analyzing the data and then following that with action. McVay provides custom application, reports and consulting to keep you a step ahead of the competition. 

Many new businesses can start this full service accounting, bookkeeping, tax and payroll services for $150.00 per month. Discount pricing for all clients on monthly QuickBooks Online Subscriptions. 
Mike McVay, Certified BPO - Certified QuickBooks ProAdvisor - Licensed Tax Return Preparer
850-725-5696
5336 N Blue Angel Pkwy Pensacola, FL 32526
Mike@MikeMcVay.com 

"Unless something is specifically exempt from being taxable income, it is income and you're supposed to report it," Kubey says. The IRS gets its own copies of the 1099 and W-2 income forms you have received and may notice your omissions. Track down any tax forms that have gotten waylaid or lost in the mail and contact a tax preparer if you're not sure about which earnings count as taxable income.

 CREDITYou made typos or a math error.
It might be an honest mistake, but if something looks fishy, such as an incorrect Social Security number or calculations that don't add up, you may bring on additional scrutiny from the IRS. Be careful and check your work twice when filing taxes.

 CREDITYou aren't reporting cryptocurrency.
"Cryptocurrency is going to be an emerging issue with the IRS," says Phyllis Jo Kubey, enrolled agent and certified financial planner in New York City. "A lot of people don't know that when they buy something with cryptocurrency, it’s a taxable transaction." If you're receiving bitcoin as income or successfully mining it, for example, these transactions may need to be reported. The IRS receives information from digital currency wallet Coinbase and may apply increased scrutiny to your tax return if it doesn't reflect the data provided.
​

​Be specific when itemizing various expenses, Fultz says. If the numbers all end in a double zero, it can look fishy. "The IRS does look at that, and they might feel you don't have documentation for your expenses," he says. Again, keep good records and be specific when writing off expenses.

​When listing the business use of a work-related automobile, the IRS knows that it's unlikely that you're using it 100 percent for work. For example, if you use it for commuting, that expense isn't deductible. There are myriad mobile apps and tools to help you track mileage. Maintain your paper trail. Turbo Tax has the greatest audit chances, because of past audits this software is known to be a treasure trove of mistakes based on I.R.S auditors. Claims of 60% of Turbo Tax users will be audited within 3 years of filing. 

To recap, here is what triggers a tax audit:

• You earned a lot of money.
• You aren't reporting cryptocurrency.
• You are self-employed.
• You failed to report taxable income.
• You made typos or a math error.
• You have three consecutive years of business losses.
• You use round numbers.
• You deduct 100 percent of a business car.
• Something doesn't add up.

Remember that audits are rare, and good record keeping will help you endure the audit process. If the time comes an experienced Tax Accountant will stand by your side on an I.R.S audit. Mike McVay, Tax Accountant 850-725-5696 - Mike@MikeMcVay.com 

If you own cryptocurrency, you need to know that the IRS has owners of cryptocurrency in its sights because many cryptocurrency owners are not reporting or paying taxes on their cryptocurrency transactions. In fact, the IRS is so focused on this issue that it recently issued warning letters to over 10,000 taxpayers it suspects might have an under-reporting problem.

About Cryptocurrency – If you are unfamiliar with the term cryptocurrency, the short definition is a form of digital money that is not controlled by any central authority.
The first cryptocurrency created was Bitcoin, back in 2009. Since then, over 4,000 other cryptocurrencies have been created. Cryptocurrency can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, euros, and other real or virtual currencies.
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Tax Treatment – One of the big issues of cryptocurrency is how it is treated for tax purposes. The IRS says that it is property, so that every time it is traded, sold or used as money in a transaction, it is treated much the same way as a stock transaction would be, meaning the gain or loss over the amount of its original purchase cost must be determined and reported on the owner’s income tax return. That treatment applies for each transaction every time it is sold or used as money in a transaction.

Example A: Taxpayer buys Bitcoin (BTC) so he can make online purchases without the need for a credit card. He buys one BTC for $2,425 and later uses it to buy goods worth $500 (let’s say BTC was trading at $2,500 at the time he made his purchase). He has a $75 ($2,500 – $2,425) reportable capital gain. This is the same result that would have occurred if he had sold the BTC at the time of the purchase and used cash to purchase the goods. This example points to the complicated record-keeping requirement for tracking BTC’s basis. Since this transaction was personal in nature, no loss would be allowed if the value of BTC had been less than $2,425 at the time the goods were purchased. Of course, if the taxpayer in this example only sold a fraction of a Bitcoin – enough to cover the $500 purchase – the gain would only be $15: $500/$2500 = .2 x 2425 = 485; 500 – 485 = 15O  the bright side, for most, cryptocurrency is generally treated as a capital asset, so any gain is a capital gain, and if the gain is held for more than year and a day, any gain will be taxed at the more favorable long-term capital gains rates. If the cryptocurrency is being held as an investment and the sale results in a loss, then the loss may be deductible. Capital losses first offset capital gains during the year, and if a loss remains, taxpayers are allowed a $3,000-per-year loss deduction against other income, with a carryover to the succeeding year(s) if the net loss exceeds $3,000.
When cryptocurrency is used as payment to an employee, the usual payroll withholding and reporting still apply, and if used to make payments to an independent contractor, 1099 form reporting is still required. If the individual receiving payment in cryptocurrency is subject to backup withholding, the payer is required to withhold the required amount. In all reporting and withholding instances, the amounts must be in U.S. dollars.

IRS Compliance Program – That brings us to the issue at hand. The IRS has begun sending letters to taxpayers; by the end of August, more than 10,000 taxpayers will receive one of three varieties of letters. If you have received one of these letters, do not ignore it! The IRS compiled this list of taxpayers that it feels has not been reporting their cryptocurrency transactions from various ongoing IRS compliance efforts. The following is a synopsis of the types of letters:

Letter 6173 – Requires a response from the taxpayer, either by the taxpayer providing a statement to the IRS that they have already complied with the required reporting or by filing a return that reports their cryptocurrency transactions. For situations where the taxpayer had already filed a return but had left off the cryptocurrency transactions, an amended return (Form 1040X) will need to be filed. Taxpayers who ignore this letter may face a full-blown audit by the IRS and could be subject to penalties.

Letter 6174 – This is a “soft notice” that does not require a response, and the IRS says it won’t be following up on it. However, the notice also warns that if the taxpayer had cryptocurrency gains and fails to amend their return or continues to be noncompliant on future returns despite receiving the letter, the taxpayer will be in hot water.

Letter 6174-A – The taxpayer isn’t required to respond to the letter but does need to correct their prior returns in which cryptocurrency transactions have been omitted. The IRS warns of future enforcement action if the taxpayer doesn’t amend their return(s) or file their delinquent returns. After receiving the letter, the taxpayer can’t use an excuse of not knowing the law for failing to report their cryptocurrency gains.
Last year, the IRS announced a virtual (crypto) currency compliance campaign to address tax noncompliance related to virtual currency use through outreach and examinations of taxpayers. The IRS has announced that it will remain actively engaged in addressing non-compliance related to virtual currency transactions through a variety of efforts, ranging from taxpayer education to audits and criminal investigations.
Taxpayers who do not properly report the income tax consequences of virtual currency transactions are liable for the tax, penalties and interest. In some cases, taxpayers could be subject to criminal prosecution.

If you have received one of these IRS letters – or even if you haven’t had correspondence from the IRS but have unreported cryptocurrency transactions from past years – and need assistance in responding to the letter or in preparing the amended or late original returns to report your cryptocurrency transactions, please contact us right away.

Mike McVay, Tax Accountant - 850-725-5696
Mike@MikeMcVay.com

Mike McVay, has just added a new service to help small businesses with their bookkeeping task. For ONLY 99.00 a month a LLC or S-Corp company can have all their transactions posted, reconciled with full monthly financial reports. Included is 1/2 price monthly subscription to QuickBooks Online! 

Mike McVay, Accountant has been a Certified QuickBooks ProAdvisor for over 20+ years. His streamline office administration has become one of the most popular services for small to medium size companies all over the Pensacola, Florida area for years. His 5-star rating and voted one of the TOP Accounting and Tax firms in Pensacola, FL shows his compassion, trust and guaranteed services to many small business owners. 

QuickBooks Online fees have gone up again. Never pay full price again with McVay Business Services. 

*to qualify for the 99.00 per month service, you can only have 1-bank and 1-credit card account with gross sales under 100k per year. Perfect for small or start-up companies. 

Call Mike McVay, Accountant @ 850-725-5696 - Mike@MikeMcVay.com 

When you head off to work each day, does the thought of suffering an injury cross your mind? This is probably not at the forefront of your thoughts, but it is a possibility with each passing day.

There is always the chance that an accident can occur while you are at work because of the hazards of your job, dangerous equipment, mistakes made by co-workers and many other reasons.

If you are injured on the job, who will pay your bills? Will you be covered by workers’ compensation? In fact, is your employer obligated to provide workers’ compensation benefits?
What is the Florida Workers’ Compensation Law?Working in Florida is a dream that many people hold. But that dream can easily turn into a nightmare when you are injured on the job. So, what is the law in Florida when it comes to workers’ compensation? Does your employer have to provide you with these benefits when injured?
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In Florida, the law states that any business operating in any industry other than construction that employs at least four people, either full-time or part-time, must provide employees with workers’ compensation benefits. Any corporate officer who is labeled as exempt does not count as one of the four employees under Florida law.
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Overview of Florida Workers’ Comp
Below, you will find a brief overview of how workers’ compensation is handled in Florida:

• You have 30 days to report the injury to your employer
• You have two years from the date you suffered the injury to file a claim for benefits
• A limit of $863 per week will be placed on benefits
• Benefits for impairment are decided based on the impairment rating you are assigned
• Any disability that will last less than 22 days will begin receiving benefit payments on day eight
• Benefits will begin paying out on day one for any disability that will last for more than 21 days
• Benefits will be limited to a total of six months for any psychiatric claims that arise from a physical injury
• Employees receiving either temporary partial disability or temporary total disability can receive benefits for up to 104 weeks
• Benefits will be limited to six months if you are receiving up to 80 percent of the regular wage you earn because you suffered an injury deemed to be critical
• Damages will be doubled for any injury suffered by a minor who was illegally employed
• Must seek medical evaluation and treatment from the doctor authorized by your employer’s workers’ compensation insurance provider (failure to do so could result in the denial of your claim)
• Any denial of a claim should be reviewed by an attorney

Ah, summer – the time of year when some people dive into entrepreneurship. Whether it’s a summer job, a part-time gig, a side-hustle or a small business, you may be considered self-employed. If that’s you or someone you know, here are a few tips to help navigate your tax situation.
Know If You’re Self-EmployedIf your income is from a business or service, for example, working as an independent contractor in sales, or a social media sensation to babysitting, housecleaning, gardening, and even being a freelance promoter, etc.; that type of income is self-employment income. Your self-employment income is reported on Schedule C or Schedule C-EZ, Profit or Loss from Business. However, you will be able to reduce the income you make by being able to claim business expenses, such as supplies, auto mileage, and cost of goods sold.
A QuickBooks ProAdvisor like Mike McVay, Certified QuickBooks ProAdvisor helps uncover industry-specific business deductions you may not have even known you were eligible for.
Withholding and Estimated TaxesIf you’re an employee, your employer withholds tax from your paychecks. If you are self-employed, you may have to pay estimated taxes directly to the IRS on set dates during the year. You are expected to pay estimated taxes if you expect to owe $1,000 or more annually.
All Income Must Be ReportedAlthough you can earn a certain amount of income each year without having to pay taxes or file a tax return, if you are required to file a tax return, all income you receive from any source should be reported on your the return. That includes income from side jobs, self-employment, barter exchanges, and any sort of fellowship for which you perform services. If the net income after subtracting expenses is $400 or more you are required to file a tax return and pay self-employment taxes, which will be included as a part of your personal income tax return on Form 1040.
Barter IncomeSometimes you aren’t paid in cash and instead, you receive services or goods in exchange for your self-employment work. That’s called bartering, and you must report the fair market value of the goods and services you receive. For example, if you spend the summer tutoring your neighbors’ children and you receive a credit for the restaurant they own or a bicycle from the bicycle shop they own, then the value of what you received is considered self-employment income to you.
Filing A Tax ReturnIf you can be claimed as a dependent on someone’s tax return, you’ll still need to file a tax return if your income exceeds the minimum gross income filing requirements, or if your self-employment income is $400 or more. Even if you aren’t required to file a tax return, you’ll still want to file if income taxes have been withheld from your paycheck since you may get that money back or it could also generate a tax refund if you’re eligible for any of the refundable tax credits like the American Opportunity Tax Credit or the Earned Income Tax Credit.
Don’t worry about knowing these tax rules. You can easily track your business income, expenses, mileage, and figure out your estimated taxes year round with QuickBooks. Mike McVay, Tax Accountant in Pensacola, FL can help you pay the least amount of tax. 
Call Mike McVay today at 850-725-5696
Mike@MikeMcVay.com
www.PensacolaFLTax.com