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Noxest
Mar 7, 2008, 01:24 PM
Hi guys:

My employer gave me checks with no tax of any kind being withheld, no social security, no health-care, no Medicare, nothing. My question is: is it illegal to earn income without paying taxes to the government?

I earned very little, about $3000 a year since this is only a part time job. Please help me, I don't want to get in trouble with the IRS.

ScottGem
Mar 7, 2008, 01:27 PM
If no taxes were withheld, either you didn't earn enough to make the withholding tables, you are an independent contractor or you are paid off the books.

Did he give you a W2 or 1099 for last year?

Noxest
Mar 7, 2008, 01:28 PM
Yes, he did gave me an W - 2 form.

ScottGem
Mar 7, 2008, 01:31 PM
And did the W2 list what he paid and that no taxes were withheld? If so, then YOU are in the clear. However, he may be in trouble for not withholding. In the meantime you can just use the W2 to file your return. With so little income you may not owe any taxes.

Noxest
Mar 7, 2008, 01:41 PM
In the W - 2 form, only the first box (Wages, tips, other compensation) has number on it (below $3000), the rest are blank. So that mean I'm clear, right?

ScottGem
Mar 7, 2008, 01:46 PM
Yep

Noxest
Mar 7, 2008, 01:48 PM
Thanks Scott, I appreciate your answers.

Wildsporty
Mar 7, 2008, 07:58 PM
You also might want to check your W-4 form to make sure it is filled out correctly or you could owe more next year.

Just a thought.

Shirley

MukatA
Mar 8, 2008, 06:00 AM
An employer is required to withhold social security and medicare taxes, and this does not depend upon what is claimed on W4.

s_cianci
Mar 8, 2008, 06:11 AM
I earned very little, about $3000 a year since this is only a part time job. Here is your answer. Evidently you fall under the ceiling where employers are required to withhold Federal Income tax, social security, medicare, etc. To save themselves the expense and red tape, your employer has not done so. Evidently you also live in a state where employers are likewise not required to withhold state taxes on small earning amounts (or maybe your state has no income tax.) However, you are still required to pay taxes. You need to file Form 1040 (or you may be eligible to use one of the shorter forms, 1040A or 1040 EZ.) This is for the purpose of reconciling what you earned, what your tax due is and therefore how much you owe. You can do so on line, probably for free ; check out taxfreedom.com (this is a free version of TurboTax for taxpayers earning less than $30,000 per year.) If your state has an income tax, you'll likewise need to file the appropriate form and reconcile your earnings and taxes owed. You'll need to check out the procedures for your particular state. I would imagine that they likewise have a similar online form that can be utilized.

Noxest
Mar 8, 2008, 06:12 PM
I went to a tax agency and talked to an accountant. He told me that I do not own the government any taxes since I made below $8000. He also said that I do not need to file tax return.