2006-07-29 10:53:35 · 18 answers · asked by mr man 2 in Business & Finance ➔ Taxes ➔ United States
It depends on how much you get paid in the year actually. Say you make minimum wage, which I will assume the federal minimum wage, some states have it higher already, which is 5.15/hour. If you are full time and work exactly 40 hours a week you will make $10712. Note this is considered poverty level, if you're independant. Tax on this will be calculated by deducting, if you're single and have no other deductions, the standard deduction of 5150 and a personal exemption of 3300. 10712 -3300-5150= 2262. This is in the 10% tax bracket and therefore tax liability for this income would be $226.20 for the year. State taxes usually offer their own exemptions and tax a rate on income as well, as do some local vicinities. FICA taxes 7.65% on all income regardless. FICA on this income would be $819.47. So as you can see, even minimum wage workers have to pay some taxes as well, dependant upon the yearly wage. Now, if you are a dependant of your parents or something, which could be, I don't know your situation, you can make up to $5150 without being taxed by federal. State taxes will vary and again no matter what you will pay 7.65% in FICA. I hope this helps.
2006-07-29 14:59:26 · answer #1 · answered by Josh 4 · 0⤊ 0⤋
Yes, they do. Think of taxes in different groups, payroll and income taxes.
Every employee paid (which limits and exceptions) has to pay social security and medicare taxes. For a person under roughly $100K, that's 7.65%.
Next are income taxes which can be both federal and state. Federal has a graduated rate, meaning each piece of income can be taxed at a particular rate. See the IRS website for more detail. At the end of the year it is possible for someone who makes very little to not end up owing any tax for the year (and get refunded anything paid in) because of exemptions and such.
And it has nothing to do with immigration. That's just a cheap cop out (to the first answerer).
2006-07-29 18:01:00 · answer #2 · answered by Molly 6 · 0⤊ 0⤋
Josh has done the calculations for income tax and FICA. There is an "earned income credit" which would be available to those earning minimum wage and more: people between ages 25 and 65 with no "qualifying children" are eligible if their income is up to $11,750 if single, $13,750 if married filing jointly. If you have one qualifying child, can be under age 25, and can make up to $31030 single and $33030 mfj; with more than one qualifying child, can make up to $35,263 single, $37,263 mfj and still be eligible for the credit. If you meet all the rules, you can get this credit even if you don't owe any taxes. It's a little bit complicated, but if you think you might be eligible, be sure to check into it.
2006-07-29 22:15:13 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Let's not be so ignorant CATS4EVER. Immigrants, including the illegal ones come from many countries, not just Mexico. And when they work, they usually provide a fake social security number, under which they pay taxes, but they never file a 1040 to get some of it back, so for the most part they are doing their part in paying taxes. Unless of course they get paid cash, in which case it's the American public who pays and employs them that you should be angry at.
2006-07-29 20:16:41 · answer #4 · answered by JoelMBA 3 · 0⤊ 0⤋
Your wage doesn't determine whether you pay taxes, at least not entirely.
It also has to do with how many dependents you claim on your W-2 and your tax return. If you have a lot of people depending on you and you're the only source of income at minimum wage, then no, you probably won't have to pay (most) taxes.
2006-07-29 18:00:11 · answer #5 · answered by giraffesdrinkingcoffee 2 · 0⤊ 0⤋
If the government knows your making it their taxing it or you better at least pay them the taxes on it. Though people who make min. wage typically get money back at the end of the year also.
2006-07-29 17:58:14 · answer #6 · answered by MOVING 5 · 0⤊ 0⤋
Any income an employeer pays an employee is reported to the State and Federal government. Which you pay income tax on.
2006-07-29 17:58:23 · answer #7 · answered by Rick L 1 · 0⤊ 0⤋
yes, everyone pays income taxes.
however, for someone earning minimum wage, the tax bracket is so low, and they can take so many deductions and add back so many credits, that the likelihood of actually having to pay out any money is very slim.
2006-07-29 17:58:01 · answer #8 · answered by JoeSchmoe06 4 · 0⤊ 0⤋
Yes, they do! Also, if they get 40 hours a week, they pay FICA, too. They have no health coverage because they can't afford it, si if they get sick, tough. They don't make enough to take other deductions. No medicine, then, no job.
2006-07-29 17:59:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes anyone that has a job has to pay taxes no matter how much money you are making
2006-07-29 18:01:01 · answer #10 · answered by sizzlincowgirl4life 2 · 0⤊ 0⤋