2007-02-07 06:40:06 · 11 answers · asked by help101 1 in Business & Finance ➔ Taxes ➔ United States
Although his income is below the level where income taxes are due ($5,150 if you claim him as a dependent) he had more than $400 in Self Employment income so he must file a return and pay the SE tax (15.3% of the net profit from the activity) on that income.
2007-02-07 06:45:54 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
This one is not good for your son because whoever he worked for issues a 1099 instead of a w-2 which means no taxes, social security or medicare was taken out. 1099 info is also sent to the IRS so you will need to check with a tax adviser to see exactly how to handle this.
2007-02-07 14:56:43 · answer #2 · answered by DaLab 2 · 0⤊ 1⤋
I myself received a 1099 and sorry to say your son will have to pay taxes on the money that he earned.
2007-02-07 14:49:20 · answer #3 · answered by Crystal A 1 · 0⤊ 0⤋
With a 1099, yes, he'll owe self-employment taxes, so must file a return. He won't owe any income taxes, just the self-employment tax.
2007-02-07 21:27:08 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
You are allowed $600 every year, if you make anything over that you have to report it on your 1099 or appropriate form. Stinks huh?
2007-02-07 14:48:04 · answer #5 · answered by boz4425 4 · 0⤊ 2⤋
I looked it up on turbo tax and it said that a minor you can claim has to claim their income if it's over $5150. If you have an HR BLOCK they will answer that question over the phone.
2007-02-07 14:52:06 · answer #6 · answered by Baw 7 · 0⤊ 2⤋
You can file head of houshold and report his earning and split the refund with him. Figure out how much it would be for you to not claim him then figure how much it would be to include him and his monies this portion you split with him. He would get back less and you would also.
Yes, this is leagle and the proper way to do it. But he also can file his own.
2007-02-07 14:51:54 · answer #7 · answered by Ordena H 1 · 0⤊ 2⤋
not sure in usa, but in canada your earnings below 6700 are not taxable.
i think usa has similiar tax policy.
also you didnt say if there were any tax deductions from it,.
If there were deductions than he is gonna get refund.
2007-02-07 14:46:40 · answer #8 · answered by Wilus 2 · 0⤊ 1⤋
If you make money in the U.S you have to pay taxes.
2007-02-07 14:44:00 · answer #9 · answered by cowboybronco01 4 · 0⤊ 2⤋
Does not matter how old he is.
The first 600.00 dollars you earn in your lifetime is free, from there on out you file!
2007-02-07 14:45:48 · answer #10 · answered by Anonymous · 0⤊ 2⤋