pay? I live in Oklahoma....
2007-01-02 03:32:25 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
filing married
2007-01-02 03:37:45 · update #1
Does home free mean I have to not pay taxes on it because it is less then 5000??
2007-01-02 03:38:49 · update #2
You didn't say single, married filing joint, etc. You didn't say if you were someone else's dependent, etc.
Info needed.
1. If you are filing single and no one can claim you, you don't have to pay taxes, you fall under the minimum and are beneath the poverty level.
2. If someone is claiming you, you get no benefits. You will have to pay at least 10%
2007-01-02 03:36:37 · answer #1 · answered by jayndee13 4 · 0⤊ 1⤋
I doubt you will owe anything and you not give a lot of details. If, your single or possibly filing separate and not a dependent then with this amount of income and a child you will qualify for Earned Income Credit, it may not be a lot, but, it be money you get and not pay in! Also, if this your only source of income you have choices on the 1040 Form what line you enter this amount. This can do several things. It can not give you the Earned Income Credit, it can cause you to pay Social Security later on the form at the total rate (About 15%) if you take the Earned Income Credit. If, you take the Earned Income Credit it usually cover your Social Security Tax. I advise people who are Self-Employed and pay all their Social Security to keep copies of your 1040 until you Retire!!!!! This way you do have proof you paid your Social Security should there be a Dispute when you Retire.
The best way to figure your options is fill in the Form and try placing your income on the different lines and do the Math. It just basic math, or, an Income Tax Service may be a better option to help you figure what your best approach.
2007-01-02 11:49:21 · answer #2 · answered by Snaglefritz 7 · 0⤊ 0⤋
You wouldn't have to pay income taxes on that amount if it's your only income, and you aren't filing jointly with someone who has other income. But you would owe self-employment tax of 15.3%. You're required to file a return for the year. You'll show this income on a schedule C (actually, you can probably use C-EZ), and figure your self-employment tax on schedule SE.
The responder who suggested that you see a professional to do your return has a good point. Look for a VITA site in your area - there trained preparers will do your return at no charge. Check irs.gov to find a site near you. Or talk to a CPA. Stay away from the storefront companies like H&R Block.
2007-01-03 00:05:24 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
It would ammount to less than $5000 a year. So you are home free, If it is your only job. Now If you have a regular job, where you do pay taxes, just add the $3600 to your income. I cant tell you what you would pay if thats the case. Good Luck.
2007-01-02 11:37:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
For 2006 if you are single and under 65 you won't have to file taxes if you gross icome in less than $8,450. You can find this info in Publication 17 page 7 from the IRS.
2007-01-02 11:49:29 · answer #5 · answered by Leonardo 1 · 0⤊ 1⤋
That sum is too small to incur any Federal tax liability (or almost certainly, any state tax liability either), but Social Security taxes apply. Your employer is supposed to remit 7.65% on your behalf (and probably pay it quarterly), and you are supposed to also pay 7.65%. This would be done using Form SE-1 as part of your 1040 filing.
2007-01-02 11:38:42 · answer #6 · answered by Anonymous · 1⤊ 1⤋
You'll pay about $12 on your gross income for the year (less, of course, if you don't work the entire year), $1 for social security, and $11 net. The state will hold an additional 3.4% of your taxes.
http://partners.leadfusion.com/tools/yahoo_tax/paycheck02/tool.fcs
2007-01-02 11:39:03 · answer #7 · answered by Me, Thrice-Baked 5 · 0⤊ 1⤋
You would need to file a Schedule C with your return this year.
It may be time to see a professional.
2007-01-02 11:39:52 · answer #8 · answered by Wayne Z 7 · 1⤊ 0⤋