Question about self employment taxes, EIC?
I’m a single mother and a full time student finishing my bachelors degree this year. Last year I cleaned a family member’s house for $ 100 a week. I was told I had to claim that income or face penalties if caught. So I did. I claimed obviously, my son. I qualified for EIC and got money that I had paid for school. My refund totaled over $ 2500 and I have yet to spend a single dime because it just doesn’t make sense to me and I honestly don’t want to cheat the system, I just didn’t want any trouble. So I haven’t touched it, in case I get audited or it was, in fact, a mistake. I live with just my son, we don’t really have many expenses, they total just under $ 200 a month for gas, cell phone, light bill and car insurance. We live in a small trailer for now that is rent free. I keep getting mixed answers and I could really use some knowledgeable advice on what to do for this year as I have increased to $ 200 weekly for 2 houses.