Hello, I am 31 and a stay at home unpaid caretaker for my mother. Before she became disabled I racked up 2 cards with debt. After the bank was finally done letting them rack up interest they both ended at about 7K in debt each. The collections agency took over and tried collecting for a few years which I couldnt pay while I was making no money. about a year ago they took me to court and I let them get a default judgement on me.

A few months after they got the default judgement on me I lucked into a low pay contract job entering info into a database for a website. I average about 50 bucks a month (paid based on how much info i put into the database) and the money goes into a Paypal account. Last year I made $300 for the year, this year im going to make around $700-800 for the year. My employer told me that if I make $600 for the year they will have to report me for taxes.

My Questions are. 1.) when my employer reports me for taxes will that signal the collectors so they find my Paypal account or will it only signal them when I pay taxes?

2.) Do I need to pay taxes on such a low amount $700-800 a year.

3.)If the Collections agency does find my pay pal can they empty everything because I went to a default judgement or just garnish a % of my wages ?

Thank you for any help you can provide.