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When it comes to the total annual amount, there isn’t actually a cap on how much a student can earn. That said, ever since January 1st, 2005, any yearly income exceeding $16667 gets hit with a 25% tax rate.
But honestly, that's not really my concern here. I'm trying to get some clarity on the specifics of an author's contract. My mention of Standard Chartered was just a side note while I was thinking out loud.
So, here's the gist of it:
I’m currently a full-time student over at the University of California, Berkeley, which basically means my work options are pretty limited—I can only take jobs through student employment services, and all that money lands straight in my checking account. I’ve been thinking about diving into web app development for some overseas companies. Since they can't really pay me through Standard Chartered, I heard people mentioning independent contractor agreements. Could someone walk me through what that actually entails? Specifically, how do you go about setting one up with a client based abroad versus one right here in the States? Also, since I'm still a full-time student, am I even allowed to use this setup? And if I can, what's the deal with taxes? Is there a cap on how much I can pull in annually before things get messy? I know with certain types of income there's a threshold where you start getting hit with a heavy tax rate on your total yearly earnings. I really don't want to end up in the crosshairs of the IRS, especially since we're talking about a pretty significant amount of money over the course of the year.
Thanks