what is maximum you can make & not have to file taxes?

Question

I have an 18 year old that just made $7000 does he have to file? It was working for a grocery store.

Answer 1

It depends on your filing status and age, whether you're a dependent or not, and if you worked as an independent contractor or owned your own business.

If you worked as an independent contractor or owned your own business, you have to file if you netted more than $400. Even though, depending on how much you made, you might not owe income tax, you would owe self-employment taxes of 15.3%.

If you're a dependent, you must file if your gross income over $5150 or $850 if you have unearned income.

Otherwise you don't have to file if you're under 65 and you made under $8450 (single), $16,900 (married filing joint), $3300 (married filing separately, $13,600 (qualifying widow(er)), $10,850(head of household). For people aged 65 or over, limits are a little higher except for married filing separately, which is the same as if under 65.

If you aren't required to file but had anything withheld or if you might be eligible for a refundable credit such as earned income credit, you should file to get your money back or possibly get money for the credit.


So if your 18 year old is your dependent, then yes, he is required to file. If he isn't but had anything deducted for federal withholding, then he should file to get it back, but isn't required to but otherwise he won't get his money back.

Answer 2

It is NOT Illegal NOT to file a tax return. The IRS gives you a personal exemption of $3000 in 2006 and a standard deduction of $5000 if you are single and have no dependents. Sooo if you made $8000 or less AND HAD NO FEDERAL INCOME TAX WITHHELD, you don't have to file, UNLESS you were self employed, you would have to file, you would wipe out the taxable income, but you would still owe social security tax. If you had federal income tax withheld, file to get it back.
Please file the form to get the credit for the telephone excise tax credit this year. You can file the form by itself or with a tax return. IRS will send you $30 if your single, good deal!

Answer 3

You always have to file taxes. But, here's the deal, if you're only making 10 or 15 thousand dollars a year you are only screwing yourself. If you make that much and file, you will get a refund on taxes you've paid. But if you don't file taxes, you should be fine because you're not really worth the IRS taking time out of their busy schedule to pursue you, audit you, and then find out they owe you a refund. But, like I said, it is illegal not to file your tax returns.

Answer 4

You have to file taxes for anything you make.....but most don't file thier income unless they have w-2s! even if you didn't make that much this past year you might want to file your taxes....just remember get the child tax credit and the earned income credit (for poor people).

Answer 5

when working for a company you can make up to $3000 and not have to file taxes. now if you own your own company that is diffrent and i dont have the answer for that one.