Question

Jim has a full-time job and occasionally designs Web sites for individuals and businesses. At the end of the year, Jim files his taxes and reports his earnings from his full-time job and his Web design contracts. Was Jim right in reporting both incomes? Why or why not?
A)Yes, because the government requires individuals to report income earned from an employer and other sources.

B)No, because the income from the Web design contracts is not considered earned income.

C)No, because the income from his full-time job is not considered earned income.

D)Yes, because the government requires individuals to report only income from a full-time job.

Answer 1

A) Yes, because the government requires individuals to report income earned from an employer and other sources.

His side gig was the equivalent of self contracting. He would definitely have to report of he made over $400.