I work for a company that pays me by the hour and does not withhold taxes of any kind.
I made $8, 500 this year. Do I have to file taxes? Can I file and get the earned income
Credit due to having one son who is 14 years old?
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I work for a company that pays me by the hour and does not withhold taxes of any kind.
I made $8, 500 this year. Do I have to file taxes? Can I file and get the earned income
Credit due to having one son who is 14 years old?
If you are independent contractor, you will need to file Schedule C (Form 1040): Profit and Loss from Business (Sole Proprietorship). On schedule C you will report your income and deduct your business related expenses.
On your net income from self-employment (that is from schedule C) you pay 15.3% employment taxes. For this you use schedule SE (Form 1040
Make sure to file your tax return before April 15, 2008.
Your income is considered earned income. You can claim your son. You will get Earned Income Credit and Child Tax Credit and now Stimulus Tax Credit.
Did they withhold Social Security and medicare but not Federal income taxes?
I don't think that any employer will deduct FICA taxes and not withhold income taxes.
Sometimes, when a worker is maybe working part time, and their W-4 claims so many dependents, the employer is not required to withhold federal income tax but is still required to take out social security and medicare. They don't earn enough to have federal income tax withheld from their paycheck. Did you think about that situation Mukata?
Yes, I did miss this.
Poster said taxes "of any kind." That implies nothing.
Magda, are you an independent contractor or are you an employee and this person is screwing with you (and the IRS)? And did you get a W-2 or a 1099? Or neither?
If you're an employee and your employer is just screwing around, you wouldn't owe any federal taxes on that kind of amount (especially with a kid), assuming you don't have other income you didn't mention. But you could still owe state or local taxes, which is screwing you over not having those deducted. You'll have to suddenly come up with the money unexpectedly. And in some states you are also responsible for unemployment and workers comp. If you're an employee, you need to get this issue straightened out with them before you have another year of this.
If you're an independent contractor, you still have to file if you want EIC or have other income, and you'd have to file state and maybe local. Even if the local laws don't require estimated payments for that amount, you still would want to estimate and set that money aside for the future.
All advice is excellent.
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