Check out some similar questions!

FindingAWay · Nov 21, 2015, 10:03 AM

I am a 23 y/o single female living in Illinois and my parents still claim me on their taxes (Think they still can this year, as I turned 23 in November). Anyway, I am curious if I will owe a lot for taxes, as I started an Independent contracting job after having W2 jobs.

January-August worked a W2 job and made $5,384.02.

August-September worked another W2 job and made $638.26. I left basically without giving notice and forgot to pick up my last paycheck and obviously couldn't get that money accounted for, but I made more. (Will that be included in taxes even though I didn't get the money?)

Independent contractor job
September-Present and made $1,734.75 with two more paychecks left for December. Get to claim mileage with 1,244 miles to date with rest of November-December left.
I wasn't able to save any of my paychecks with having to finish paying my surgery bill, but will start saving 30% of each paycheck the next two months.

Will I have to pay a lot of taxes on my IC job with having prior W2 jobs? Thank you.

ma0641 · Nov 21, 2015, 01:52 PM

Not only will you have to pay some income taxes, you will also have to pay social security taxes at 15%? If your parents claim you, you cannot claim yourself on your taxes.

joypulv · Nov 21, 2015, 02:27 PM

You parents claim you because you are a full time student? I think you made too much to be declared a dependent for any other reason.
I suspect that the money you get back from the wages will help pay for the SE income.
Your SE is suspect, actually. Self employed people don't get 'paychecks.' I sure hope you are making about a third more than you made as an employee. The IRS is cracking down on employers trying to get away with paying people as contractors, thus avoiding comp and liability and half the SS, for starters.

Fr_Chuck · Nov 21, 2015, 07:03 PM

Your age has nothing to do, about parents claiming you. You living at home and they supporting you, is why they claim you.

Also if your max income is too high, they can not claim you.

You will have to pay your taxes, and social security taxes on your incomes.

AtlantaTaxExpert · Nov 21, 2015, 08:32 PM

Chuck,

Joy is right. The OP made too much money to be claimed by her parents UNLESS she was at least a half-time student for five months in 2015.

Assuming she was NOT a full-time student, she will owe NO federal income tax, because the combination of her personal exemption and standard deduction exceeds what she made as a W-2 employee and independent contractor.

The independent contract job results in some self-employment tax, but I doubt it will be much more than $400. The taxes withheld from her W-2 job probably covers that SE tax obligation, so she should get a small refund.