If I only make 7thousand a year, do i have to file or claim taxes.?

Question

Can i work off the books if the amount is under a specific amount in a year.

Answer 1

If you make 7,000 a year, you don't have to file taxes if that 7,000 a year is W-2 wages. Your standard deduction and personal exemption would wipe out the 7,000 in income. I don't know what state you live in, so can't tell you whether or not you need to file a state return. Also, if you had federal withholding taken out of paychecks, you would want to file a tax return so that you could get the federal withholdings back. As far as working off the books, the amount that you can work off the books has to be under $400 per year. Working off the books you would be self-employed, and the rule is that you have to pay self-employment (SE) tax if net self-employment income is over $400. Just to let you know though that working off the books is illegal if you are suposed to be an employee working on the books.

Answer 2

If you are not an employee, you are self-employed and must file a tax return when your net income is $400 or more. With an income of $7,000 you will not owe income taxes if you can claim yourself on your tax return. But you will owe Social Security and Medicare taxes which must be paid when you file your income tax return. This amounts to approximately 15% of your net income, and provides you with credits toward SS and Medicare.

If you are not a student and are over the age of 25, you will be eligible for some Earned Income Credit even if you do not have children. If in addition you have a dependent child (whatever your age), then you will receive a refund even after paying self-employment taxes. You must file a return to receive the EIC.

If you are a dependent, then you will owe more taxes since you will not be able to take your own exemption or get the EIC.

Answer 3

If you are in business for yourself, which working off the books would be, then the limit for having to file is making $400 or over for the year. You won't likely owe income taxes if you made under $7000 unless you are a dependent or are married filing separately, but you will owe self-employment taxes for social security and medicare.

Answer 4

1. Assuming you are Single and no one can claim you dependent and you have income from job, then you don't need to file if your income is under $8,750. But if Federal income tax was deducted from your paycheck, then you must file to get a refund.
2. If you are Single and dependent, then you must file if your income is over $5,350.
3. If you have income from self-employment of more than $400, then you must file. You must also pay self-employment taxes at 15.3%.

Answer 5

Go back to school. Earn a degree. Make more money and live a real life.

Answer 6

you have to file taxes. if you don't and the government looks in your bank account and sees regular paychecks or deposits of certain amounts of money, you have to be able to explain where you got it from.