Do I have to pay taxes if I make less that $700 per month?

Question

I think I am going to get hired by an employer that doesn't make deductions to my paycheck.... I have no idea how much to save for taxes, etc.

Answer 1

Anything over 3300.00 a year has to pay income tax. If your employer is not going to take taxes out you should consult with a tax accountant. If you have dependants you will probably be ok because you will be in a low income level unless you have a spouses income that would be added into your income, then that would change everything.
Good Luck.

Answer 2

Yes you do. And if they aren't going to make deductions, then it sounds like they're hiring you as an independent contractor. You'd have to file and pay taxes if you made over $400 for the YEAR as an independent contractor. You'll have to pay normal income taxes (probably not much on that income) but also 15.3% self-employment tax which is over $100 a month.

Answer 3

If someone is offering you a position that pays less than $700 per month and isn't withholding taxes, they are NOT doing you ANY favors at all.

If you are self employed, you must file a tax return if you have over $400 in self employment income in the year. You must pay SE tax at 15.3% on all net SE income even if you don't make enough to have to pay income taxes.

If you take this position, you MUST make quarterly estimated tax payments using Form 1040ES. Payments are due in April, June, September and January, on the 15th of the month or the next business day if the 15th is a weekend or holiday.

Answer 4

If you are considered an independent contractor (sounds like it if they are not going to deduct anything from your paycheck) you will have to pay taxes next year.

Do a little tax planning. Take a current tax year Schedule C and SE and figure out ROUGHLY what your tax bill will be and you can make estimated taxes during the year.

Answer 5

Everyone have to pay tax. Just fill out the tax. Maybe you get some money back because your small income.