You may receive extra income that you have to pay tax on. You must declare this income on your annual tax return.
Extra cash from side jobs –Extra money you make for side jobs is taxable and is considered self-employment income. Report this income on Schedule C. If you make more than $400 from your side job, you'll need to file a Schedule SE and pay Social Security and Medicare taxes on the income.
For example, in the year 2018, the maximum earning before paying taxes for a single person under the age of 65 was $12,000. If your income is below the threshold limit specified by IRS, you may not need to file taxes, though it's still a good idea to do so.
If this is the case then you will almost certainly be required to pay tax on your additional income, as your personal tax free allowance is already being consumed by your 'day job and you're paying tax on your salary under the Pay as you earn (PAYE) scheme.
Interest from a South African source, earned by any natural person under 65 years of age, up to R23 800 per annum, and persons 65 and older, up to R34 500 per annum, is exempt from income tax.
If your taxable income for 2020 is $50,000 as a single filer, that puts you in the 22% tax bracket, because you earn more than $40,125 but less than $85,525. This is known as your marginal tax rate. Marginal tax rate is the tax rate you pay on your last dollar of income; in other words — the highest rate you pay.
2019 Tax Rate Schedule 2019 Tax Rate Schedule
| Taxable Income1 | Federal Tax Rates | |
|---|---|---|
| Married Filing Joint | Single Filers | Income |
| $168,401 - $250,000 | $84,201 - $160,725 | 24% |
| - | $160,726 - $200,000 | 32% |
| $250,001 - $321,450 | - | 24% |
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