How much money can i make before it gets taxed?

Question

Someone in another one of my questions said at 400 a year i have to file taxes, but does that mean that after 400 they start taxing? Becaue i thought anything under 8k was untoachable. Does it make a difference if im a self employed minor and a dependant of my parents?

Answer 1

It depends on how much your standard deduction and personal exemption are. This is around the $8k you were thinking. If you make less than this, these deductions will make it so that you are not required to pay any tax.

HOWEVER, if your parents can claim you as a dependent, you are theoretically required to pay taxes on your income... above $400. This is the self-employment tax I think they were talking about.

Answer 2

http://www.irs.gov/pub/irs-pdf/p501.pdf
See pub 501 table 1, 2, and 3 these are all 2006 numbers, 2007 will be slightly higher.

Most people who are under 65 don’t have to file a return unless they make at least $8,450 (table 1).
Most dependants under 65 will not have to file unless their unearned income is $850, or their earned income is $5150, or their earned income is $4850 plus $300 (table 2).

Lastly table 3 states you must file a tax return if you self employment income is over $400 (you won't owe income taxes but will owe social security taxes).

Answer 3

400 is net of business expenses and in this case only if you are self employed.
others are taxed based on the attached guidelines which usually require much higher income to be required to file.
there are cases where you have to file even without the minimum income

Answer 4

If you are self-employed, it is $400 annually. Anything over that and you will be paying something this year.

Answer 5

See here to determine if you need to file a federal tax return:

http://www.irs.gov/individuals/article/0,,id=96623,00.html

Answer 6

visit the IRS website: www.irs.gov or call 1-800-829-1040 with all your tax questions.
the website provides you publications you can look at and find your answers-