okay i dont want to end up hanging from some cage in an IRS office. I made some money last year, put i was almost paid in cash or personal checks. also more importantly i want to start trading on sharebuilder. how do i report all this and avoid getting in trouble? i only have 300 to my name right now, btw im 19
2007-01-14 08:05:00 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It depends on how much "some money last year" is. If it totalled under $400, then you don't have to do anything, and don't owe anything. If more than that, you should be reporting it and paying taxes.
BTW, you're not exactly "a kid" any more at 19, although you might be new to paying taxes. I assume that you're either in school full time, or have a steady job by now since you're talking about investing.
If you're talking about investing very small amounts on sharebuilder, read their section carefully on their fees. With small investments, you could get eaten alive by fees.
2007-01-14 10:44:56 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Did you get a paystub showing any deductions for taxes? By the tone of your question, I suspect not. You must add up all your income and declare that. You may have business expenses but you need to have kept records. I hope you have receipts for any expenses. Without knowing what you did it is hard to give any advice.
If you do not get a W-2 from anyone you worked for, you will have to pay Self-Employment Tax, which is 15.3% of business income less business expenses.
If you are going to start trading on Sharebuilder, it is essential that you keep excellent records. You need a hard copy. Do not rely on on any reports you can download from Sharebuilder. You will need to keep records of all purchases, sales, any dividends re-invested into additional shares and a note of all cash dividends received. I will not judge whether or not you should be undertaking such a venture, but if you only have $300 to your name, you might want to consider your other options. That is not really enough to start investing. At that rate, you can only afford to buy one stock at a time. If it tanks, you lose all you have.
As one other person has said, now is the time to educate yourself about the tax system. You will need to complete a Schedule C for last year and if you do trade strocks you will need to complete a Schedule D this time next year. Start with the link below. if you start making money on stock trading please consider engaging a CPA or Enrolled Agent.
2007-01-14 09:37:21 · answer #2 · answered by skip 6 · 0⤊ 0⤋
How much did you make that will be reported to the IRS in the form of a 1099 or a W-2, that is the key. Wait until Feb 28 and see what income forms you get from people that paid you. You probably wont even have to pay taxes or do a return if you didnt make much.
2007-01-14 08:09:42 · answer #3 · answered by hirebookkeeper 6 · 0⤊ 0⤋
At 19, you're no longer a kid. And you should be making a lot more than $300/year! In any case, you aren't going to owe any taxes but go the IRS website and start figuring out the tax structure. This shouldn't be too hard for you to do (I hope).
2007-01-14 08:13:08 · answer #4 · answered by mJc 7 · 0⤊ 0⤋
depends on how much you made and taxes you paid. can someone else claim you as a dependant or do you live alone? if your just a kid and didn't make more than 4,000 and someone else can claim you and provide 80% of your welfare and you live at home with your folks than you are still just a kid and shouldn't be required to file taxes. especially if you didn't make over a certain amount for the year. no worries if any of this is true.
2007-01-18 04:09:07 · answer #5 · answered by angella t 1 · 0⤊ 0⤋
The $10,000 is for legal experts expenditures, accounting expenditures and tax prep expenditures and perchance another expenditures. at the same time as the trust makes its very last distribution, the beneficiaries get carry of a ok-a million with their share of the trust earnings by the date of distribution. you've some pastime earnings surpassed out to you and perchance another earnings. If there is little or no earnings, you've some deductions surpassed out to you. you'll basically ought to attend to get the ok-a million and observe. That ok-a million will be pronounced on your 2008 go back if the perfect distribution is received in 2008 Jim Kirby, CPA/PFS, CFP, CFS
2016-12-02 06:30:10 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Did you make hundreds or thousands? I would not even bother filing if you didnt set any money aside to pay taxes. The IRS wont bother auditting you for a few hundred dollars because it costs thousands to audit someone.
2007-01-14 08:44:43 · answer #7 · answered by Krystina P 2 · 0⤊ 0⤋
a kid is not 19.
www. irs.gov
All forms & instructions - also some are at your local post office.
You won't like my answers - as you must pay taxes on all of your income.
GOD bless.
CPA-retired
2007-01-14 08:09:23 · answer #8 · answered by May I help You? 6 · 0⤊ 0⤋
try getting turbo tax or do the h&r block tax course
2007-01-14 08:09:08 · answer #9 · answered by xo24 2 · 0⤊ 0⤋
hope you like wearing stripes.
2007-01-14 08:13:16 · answer #10 · answered by Vehement 2 · 0⤊ 0⤋