Suppose a person is self-employed and earning below the minimum income at which he is required to file. According to the Form 1040 Instructions Chart C, one of these requirements is:
You must file a return if any of the five conditions below apply for 2015.
- You had net earnings from self-employment of at least $400.
The term "net earnings" implies that this would be profit from self-employment after business expenses are deducted.
Now, let's suppose that this person has received a 1099-MISC for some amount greater than $400, but with business expenses, he has "net earnings" for the year less than $400.
Does he need to file a tax return in this situation? Will the IRS be concerned that he did not file even if he received a 1099?