i just started a job babysitting and my employer made a copy of my social security card for tax purposes. i'm getting paid $175 a week starting tomorrow. do minors have to pay taxes? how much can i make without paying? i had one other job for one week and made $215. thanks!
2007-09-03 15:42:51 · 3 answers · asked by ~Moi~ 2 in Business & Finance ➔ Taxes ➔ United States
You are required to file a return (as a dependent of another taxpayer) if you make more than $5,350 in earned income (wages), your unearned income (ie, bank interest) is greater than $850, or your earned and unearned income is greater than your earned income (up to 5050) plus $300. You also must file a tax return if you have self employment income of over $400.
You should file, even if not required, if federal income tax is withheld from your pay in order to get it back.
2007-09-03 16:01:25 · answer #1 · answered by edandyvonnemoore@sbcglobal.net 3 · 0⤊ 0⤋
Being a minor doesn't excuse you from paying taxes - it just depends on how much you make. Will taxes be deducted from your paycheck? If you're working as a babysitter in the person's home, and they control when you work and what you do, you should most likely be considered a household employee, so they'd withhold taxes from your pay, and would pay employer taxes on what you earn. If that's the case, then you could make $5350 for the year before you have to file a return or pay taxes.
If they plan to treat you as an independent contractor, then nothing would be deducted from your check for taxes, and you'll be responsible for paying your own taxes quarterly, and would pay twice as much for social security and medicare as you would as an employee - if you are an employee, the employer pays half. The limit then for filing a return and paying taxes would be $400 for the year.
If you are babysitting in your own home, or someplace other than their home, then you'd most likely legally be an independent contractor.
Many employers treat babysitters in their homes as independent contractors even though by law they should be considered to be household employees. If this hasn't been discussed, ask them if they will be taking out taxes from your paychecks and giving you a W-2 at the end of the year. If they didn't have you fill out a W-4 form, odds are they aren't planning on doing things legally, and are planning to pay you as an independent contractor.
2007-09-03 18:07:07 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
first of all, have you checkedTexas sales tax for what is taxable? most states do not charge sales tax on services and if you cannot get a permit until age 18, you might hold off until you are, or work out something to get the permit thru someone else
2016-05-20 22:59:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋