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I'm reading the instruction book for form 1040.
It says you don't have to pay tax on self employment if you made less than $400 net earnings in one year. Does that mean you don't have to pay social security tax either if you made less than $400 from self employement? Also, what if you work with a t-shirt fulfillment service? Does that count as self employment? Or are you only self employed if you print and ship the t-shirts yourself?

Are there any books or web sites that explain taxes applicable to people in the t-shirt business?
 

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Any company that you do business with will send you a form at the end of the year if you have done over $400. (I thought it was $600.) Lesser amounts are not required to be reported. If you hire a person as an outside service (programmer for instance), and they make less than the required amount, you are not required to file the form or send them one. Over that amount and you have to report it. Same thing if you are the contractee. If you get a form... you better report it. For your business, if you are writing off expenses, report the income against the losses. It shows an attempt to earn a profit.
 
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