I have a question for American teachers. I'm thinking of also teaching for Italki. I could teach English and possibly also German. I'm wondering about taxes.

Do you guys send money quarterly to the IRS? Do you just figure out a percentage that you'll be taxed and send that?

Also, what if you're also a student? Let's say for one month, you earn $300, but you also pay $150 for lessons. Do you then pay tax on the $300 that you earned or is that $150 for lessons a loss, and therefore you only pay tax on the $150 that you end up putting in the bank?

Any insight is appreciated.

Question

I have a question for American teachers.  I'm thinking of also teaching for Italki.  I could teach English and possibly also German.  I'm wondering about taxes.

Do you guys send money quarterly to the IRS?  Do you just figure out a percentage that you'll be taxed and send that?

Also, what if you're also a student?  Let's say for one month, you earn $300, but you also pay $150 for lessons.  Do you then pay tax on the $300 that you earned or is that $150 for lessons a loss, and therefore you only pay tax on the $150 that you end up putting in the bank?

Any insight is appreciated.

Answer

It is a gig job.  If italki is not reporting to the IRS then you don't have to pay anything.  I don't think they report.   If you want to pay in (voluntarily) then file with something like TurboTax and answer yes to self-employed and follow the program.  The only reason I see to pay in is if you want to pay into Social Security and Medicare. You will pay in about a total of 15% of your total earnings.  If you are young, it is worth it in the event that you become disabled.  You will get higher benefits.  I did this and it paid off when I became disabled due to a heart problem.

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