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    CindyCosta's Avatar
    CindyCosta Posts: 1, Reputation: 1
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    #1

    Sep 8, 2010, 12:13 PM
    Paid internship no taxes being withheld from paychecks. What taxes am I liable for?
    I graduated college in May, 2010 and have accepted a paid intership through December 31, 2010. I am getting paychecks every two weeks for the amount of hours worked with no taxes being withheld. What taxes am I liable for?
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #2

    Sep 8, 2010, 12:37 PM

    FICA, Medicare for starters... no free ride on those, depending on where you live you may have local wage taxes, State income tax, and Federal income tax.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Sep 8, 2010, 02:05 PM
    You are being paid as an independent contractor, which means you have to file Schedule C and SE (with Form 1040) to report that income.

    The GOOD NEWS is you can deduct a lot of your expenses associated with working on the internship.

    The BAD NEWS is that, inaddition ot federal and state INCOME taxes, you will owe SELF-EMPLOYMENT TAX at a 15.3% rate of the net income from the Schedule C.
    wnhough's Avatar
    wnhough Posts: 200, Reputation: 12
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    #4

    Sep 8, 2010, 07:04 PM
    QUOTE," paid internship no taxes being withheld from paychecks. What taxes am I liable for?"---Just for reference, if you are claimed as a dependent by your parents, then the incoem is reported asother income on your tax rerturn. And you will have a tax liability on the excess of your income over your standard deduction.
    But if not, then you are being treated as an independent contractor as explained above.
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