My employer hasn't taken out any state and federal taxes, what do I do?

Question

By the time the year ends, my income will be about $10,000. Does anyone know what form(s) I need to file and what how do I find out the percentage that I need to pay?

I started out as a volunteer and then i was hired full time. From the beginning, federal and state tax haven't been withheld.

also, they take out social security, medicare, and something called dbl

i'm filing as single. also, i'm 21 and a student.

Answer 1

You sound like an misclassified independent contractor who doesn't know what is going on. I have a canned explanation to apparently clueless independent contractors:

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employers equipment and are paid an hourly rate, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in the abuse area.

Answer 2

Are they taking out for social security and medicare? If they aren't taking ANYTHING out it sounds like they are treating you as an independent contractor, not an employee. This might or might not be legal for them to do, depending on what your job is. My answer below assumes you are being treated as an employee, and they are taking out for social security, just not for income tax - if not, things get more complicated.

If you don't have any dependents, for federal you can probably file a form 1040EZ - if you do, you probably need form 1040A instead. You can download these forms and instructions at irs.gov. You'll show your income and calculate your tax, then calculate your tax. If you are single and a dependent, like still living at home and under age 19 or under 24 and a student, you'll probably owe around $465. If you are single but not a dependent, then you'd owe around $125.

State requirements depend on where you live. Your state website probably has the info you need.

Answer 3

You really need to go see your employer and update your W-4. Apparently you put "exempt" on it even though you weren't.

While you cannot fix your 2007 problem (there aren't enough pay periods left for you to put all of your income into paying taxes), you could at least prevent this from being a problem in 2008.

There is no special form, though you might owe an estimated tax penalty.

These statements assume you are being paid on a W-2.

Answer 4

You just file a 1040 like usual. The W-2 your employer gives you will be used to figure out how much you owe.

Answer 5

if your employer hasn't taken out any taxes there is an additional form you will need to will out along with the 1040. i don't remember what it is, but when you pick up your work sheets you'll see it sitting there. also, if you made $10K, you probably won't pay any taxes. you will still need to file the paperwork though.

Answer 6

Here's the 2007 1040 instructions. Go to page 64 and check out the table.
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

-MM

Answer 7

what you do is end up paying a wad at end of year! by law he must pay - see atax guy - youknow hand r block or one of those

Answer 8

just fill out the forms as usual, it'll tell you what you owe