The 8 element in a federal tax return are: 1) AGI 2) deduction 3) exemption 4) taxable income, 5) tax, 6) credit, 7) payment 8) tax due/refund.
1) AGI mean Adjusted Gross income, in another words "INCOME"
2) deduction reduce AGI, in 2005 single standard deduction is $5000.00. which means if you earned income less than $5,000.00 or less there is no tax
3) exemption reduce AGI, everyone has one but your may be taken by your parents if you are there depend or your collection state welfare then your state's depend or you are nonresident of USA. 2005 exemption is $3,200.00 which mean if you earn $3,200.00 or less there is no tax. I have a feeling that you may not qualify for exemption.
but if do you combine the deduction and exemption then you will have $8,200.00 or less you don't have any tax.
And you may qualify for Earn Income Tax credit, that's is number 7 on the list because EIC is treated like money the federal government give you for low income.
whether you get pay by cash or not you should do a federal and state tax (if you have state income tax). best be honest, it pays off in the end.
2006-09-19 08:47:48
·
answer #1
·
answered by Kenshin 5
·
0⤊
1⤋
If you are being paid cash, your employer could give you a 1099-misc at the end of the year. In which case you would be considered self employed. Anything over $400 is taxable, you really need to find out about being put on the payroll correctly because you right now.. are going to not only owe normal taxes, but self employment taxes as well. Good luck
2006-09-19 13:07:36
·
answer #2
·
answered by Rebecca - 3
·
0⤊
0⤋
If you want to be very "honest" with the IRS and report the income you are receiving in cash, you'll have to pay a lot of money (over $1,100) because you are responsible for the social security and medicare taxes that you haven't paid throughout the year (this is called self-employment tax). Any person int this situation with income above $400 is required to file taxes.
It could help you if you qualify for earned income credit.
2006-09-19 08:24:01
·
answer #3
·
answered by NANA 3
·
0⤊
0⤋
Even if you are paid cash you need to file tax returns in most cases. Get the form 1060 instructions to find out if you really need to file or not. Also $6/hr is above the federal minimum wage.
All that aside. At $7,800 you probably won't have to pay anything. If you are paid cash then you didn't have anything withheld so you probably won't get anything back either. I say probably because you might qualify for earned income tax credit.
Fill out the form and find out.
2006-09-19 07:35:05
·
answer #4
·
answered by TC 3
·
0⤊
0⤋
No matter if you are paid cash or not, you have to declare your income. But $7800 is below the poverty level! I am sure you will not have to pay any taxes.
2006-09-19 07:18:18
·
answer #5
·
answered by thunder2sys 7
·
0⤊
0⤋
if you're paid cash I don 't think you even need to pay taxes, and dude 6 bucks an hour is below minimum wage, you should get help from the government.
2006-09-19 07:12:53
·
answer #6
·
answered by frontstreetboy2004 3
·
0⤊
2⤋
So far everyone has forgotten FICA taxes. 7.65% each for you and your employer. They are probably paying cash to try to cheat on these taxes.
2006-09-19 12:06:33
·
answer #7
·
answered by STEVEN F 7
·
0⤊
0⤋