Is it true that when you get a job while you're still a minor...?

Question

that you have to pay taxes? I tried to get a job, but my mom said no because I would have to pay taxes. Is this true?

I tried to get a summer job, but why would I have to pay taxes if I only worked for three months? My theory is that like your parents get a certain amount of money for each child that they have under 18 and when they get a job when they're still a minor, they won't be getting that money anymore.

So yeah. Wanna help me out here? Sorry, I don't know much. I'm still young. :D

Oh and my friend is asking if you did work, would your employers give 39% of your money to the government? And if you do, do you get a tax refund?

Thanks. :]

Answer 1

1. What ever you earn is subject to social security and medicare taxes at 7.65%. Then depending upon your total income you may or may not have to pay Federal income tax and State tax depending upon your state (Some states don't have state income tax).

2. If your parents can claim you as dependent, then your federal exemption is $5,350. That means you will pay
Federal tax only if your income for the year is over $5,350. The first income tax stab is only 10%.

3. If you provide more than half of your support, then your parents can not claim you as dependent and your Federal exempiton will be $8,750 ($5,350 plus $3,400). That means you will pay Federal tax only if your income for the year is over $5,350.

4. When you provide more than half of your support, your parents' exemption amount will decrease by $3,400. That is, their federal tax will increase by $1,020 (assuming their highest income stab is 30%). Then their State income tax will also increase. They may lose $1,500 or more. This is also your own family loss.

5. Once you have earned income, then you may also have to file Federal and state taxes. Another headache. (You must file if your income is more than $5,350.)

6. So think on what your mom said. Talk to your mom again.

Answer 2

It depends on how much you make. If you are an employee of a company, then you will pay social security and medicare of 7.65% of what you make. If you make over $5350 for the year, you'll also owe federal income tax. Depending on where you live, you might also owe state and/or local income tax.

Unless you earn enough that you provide over half of your own support for the year, your parents can still claim you as a dependent, and get the same benefits as they would if you weren't working.

If you had worked for only three months, chances are that you wouldn't be paying income tax, just social security and medicare taxes.

As to your friend's comment - 39%? No, not anywhere near that unless you made a huge amount of money.

Answer 3

Yes, you may have to pay taxes. Since you are a dependent of another taxpayer you will pay income tax if you earn more than $5,350 in 2007. If you earn less than that you won't pay any income tax. All money you earn will be subject to 7.65% in Social Security and Medicare taxes. You may have state income taxes to contend with as well.

If you had a job some taxes would be withheld but it wouldn't be anywhere near 39%. You'd have to be making well into 6 figures to have that much withheld. If you made less than $5,350 any income taxes withheld would be refunded when you filed your tax return.

Your income won't affect any money that your parents get unless they are collecting welfare or SSI. Your income won't affect their taxes or any credits that they get such as the Earned Income Credit.

Answer 4

If you earn under a certain dollar amount, you can file for your taxes and get a complete refund of any taxes you paid. You can always call the IRS and talk to some one for free.