2006-11-06 13:39:40 · 6 answers · asked by ? 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
USA, he is paying Fica, and Medicare
2006-11-06 13:53:41 · update #1
It's due in part to how he filled in his W4. It's also due to the fact that Circular E was not updated for the new tax law passed this year that taxes kids under age 18 at their parents' rates.
His tax rate is the same as his parents on income over $700. That means it's likely he may owe at the end of the year.
Make sure he files a revised Form W4 showing "single" and zero exemptions. If his income will exceed $700, he should also arrange for an additional amount per week equal to whatever his parents' top tax rate is. And he'll need to have his parents prepare his return, since it's unlikely they'll want to show their numbers to him.
You can fight this law! Write, call, or email your congressperson to complain about the unfairness of this law.
2006-11-06 20:16:27 · answer #1 · answered by lizzit 3 · 0⤊ 0⤋
because he doesnt have to file a tax return, and therefore doesnt have to pay any federal or state taxes.
a person over 14 only has to file if he makes over $8200 (this figure was for 2005- its probably higher for 2006).
your brother is 14, im assuming is a student, and only works part-time. im sure he did not make this much money in 2006.
everyone who works and gets a W-2 however does have to pay FICA and Medicare.
2006-11-07 02:18:21 · answer #2 · answered by tma 6 · 0⤊ 0⤋
He probably does not make enough money to require the employer to take out federal and state withholding taxes. They are taking out FICA (6.2 percent) and Medicare (1.45 percent). He could fill out another W-4 and ask them to take out some federal withholding taxes (even if his exemption status does not require withholdings)...if he wanted to. However, he would most likely just get it back when he filed a tax return anyway.
2006-11-10 19:44:12 · answer #3 · answered by dltcpa 2 · 0⤊ 0⤋
He may have put "Exempt" on his W-4.
Keep in mind, this means exempt from withholdiing not exempt from taxes.
20+ years ago, when I had my first job, I ended up owing the IRS and the state at the end of year.
2006-11-06 21:58:21 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
He may not be earning enough money for income taxes to apply. But Social Security taxes should be being deducted. (I assume we're talking about the USA.)
2006-11-06 21:42:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Because he told them not to when he completed his W-4 form
2006-11-07 06:58:14 · answer #6 · answered by waggy_33 6 · 0⤊ 0⤋