Yep, Im 17, gonna work for ChaCha (i dont have a car, ok?). anyhoo, they want me to sign up for a w-19, am I subject to backup withholding and like I said, do I pay taxes? I live with my parents, arent I dependent on their taxes? born here and all that, legal, not a felon...
2007-10-17 13:12:36 · 9 answers · asked by billy 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
It depends on how much money you end up making. You only have to pay if you make over a certian amount. I'm not sure what it is in Texas.
2007-10-17 13:20:19 · answer #1 · answered by Kristina 4 · 0⤊ 0⤋
Yes, you'll pay taxes if you make over $399 for the year if you are considered an independent contractor (fill out a form W-9) or $5350 if you are an employee (fill out a W-4). You are a dependent of your parents - all that means is that you don't get the $3400 personal exemption subtracted from your income before calculating income taxes, your parents get that. Your income from a job does NOT go on their return, you file your own if you make enough to have to.
Your income tax depends on how much you make. You'll owe 15.3% for social security and medicare if you are an independent contractor, or 7.65% if you are an employee since your employer will pay the other half. Depending on where you live, you might also owe state and/or local taxes.
2007-10-17 22:42:37 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If you earn more than $5,450 in 2007 you'll have to pay some taxes. (If you weren't a dependent, it would be $8,750 before you started paying tax.) Since you are just starting now it's not likely that you'll earn that much. You'll pay 7.65% for Social Security and Medicare but won't have a Federal tax liability. If any Federal Income Tax is withheld from your pay you'll get it all back when you file your return after the New Year. If your state levies an income tax you may have to pay a small amount to the state but it won't be much.
Ignore the rubes who say it goes on your parent's taxes. It does not. They don't know what they're talking about. EVERYONE is responsible for their own tax liability, even infants if they earn enough money.
2007-10-17 21:42:04 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
1. I think you mean W-9, not W-19.
2. You may or may not pay taxes. If they are asking for a W-9, they are going to be treating you as an independent contractor, not an employee. (An employee would be asked for a W-4, not a W-9.) As an independent contractor, if you earn over $400, you must pay self-employment taxes, even if you do not have to pay income taxes. Being listed as a dependent on their taxes means that you cannot claim yourself on your taxes; it does not mean that you do not have to file or that you do not have to pay.
3. You are only subject to BACKUP withholding if you have "been notified by the Internal Revenue Service (IRS) that" you are "subject to backup withholding as a result of a failure to report all interest or dividends" and the IRS has not notified you that you are "no longer subject to backup withholding". You are NOT subject to BACKUP withholding if: (a) you are "exempt from backup withholding", or (b) "have not been notified by the Internal Revenue Service (IRS)" that you are "subject to backup withholding as a result of a failure to report all interest or dividends", or (c) the IRS has notified you that you are "no longer subject to backup withholding." However, you ARE subject to REGULAR withholding.
2007-10-18 18:34:50 · answer #4 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Yes, you are subject to taxes. Remember all of those times you thought, 'Just wait until I am grown and can do whatever I want'? Well, welcome to the world!! lol
Don't worry, you will earn much more than you will have to pay and like the rest of us you are beginning to pay into Social Security toward your retirement. In all probability you will file your taxes and get a refund.
Oh, congrats on the job.
2007-10-17 20:18:35 · answer #5 · answered by marshfield_meme 6 · 1⤊ 0⤋
If you earn money, you pay taxes. There's Social Security, MediCare, Federal tax, and state tax. I got my first paycheck at age 17, and had $20.39 taken out - just in Federal tax. I lived with my parents at the time, too.
2007-10-17 20:22:14 · answer #6 · answered by Richard H 7 · 0⤊ 0⤋
You are subject to paying taxes, but likely will get everything you pay in back in a refund at the end of the year if you don't earn much.
2007-10-17 20:16:30 · answer #7 · answered by arkleseizure 3 · 0⤊ 1⤋
You can still do taxes I did them at nine they will go on your parents taxes
2007-10-17 20:19:42 · answer #8 · answered by mo 2 · 0⤊ 4⤋
You can still do taxes I did them at nine they will go on your parents taxes
2007-10-17 20:15:42 · answer #9 · answered by mystcarol 4 · 0⤊ 4⤋