This is the first year of my life that I've made income, so I'm new to it. I did some research and found that there is a "personal exemption" of $3,650 that can be applied to dependents including yourself and a "standard deduction" of $5,700 that can be deducted from your income if your itemized deductions are less than 5700. Does this mean that if I make less than $9,350 for the year, I won't have to pay any taxes?
Answer:If no one else can claim you as a dependent, and you had no income from self-employment, and you do not owe any weird special taxes (such as the penalty for withdrawing from any IRA before age 59 1/2), then you can make up to $9350 without paying income tax.
1. If someone else can claim you as a dependent, then you do not receive the $3650 exemption.
2. If you had at least $400 in earnings from self-employment, you must pay self-employment tax.
3. Even if neither of the above situations applies, you must still pay whatever other taxes (sales tax, real estate tax, etc.) apply to you, just not income tax.
Answer:If the source of income you talk about is self employment, it is subject to self employment tax, thus you will owe some tax's for any earned income . Then you may deduct your exemption and the standard deduction from your earned income to figure the Federal tax. Both of self employment and federal tax's will be the total of tax's you supposed to pay.
Answer:Dear JS: Great research and if you get a W2 from your employer you are not required to file. If you have any tax with held in box # 2 on the W2- you will want to file to get that money back. $9350 is the magic number and you have it figured correctly.
If you are self employed and make over $400 you will be required to file and claim your income on Sch C as well as expenses. This form also throws you into the SE tax- (self employment). This is Soc Sec and Medicare, taxed at 15.2%. If you need to file Sch C get some help.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
Answer:It means that you don't have to file a tax return if you are single, cannot be claimed as a dependent, and the income is not from self-employment. You won't pay any income tax, but you will pay other taxes, such as FICA taxes on your earned income.
Answer:you got it
however, if income taxes were withheld from your pay, you will want to file to get that refunded
Answer:You are not required to file if you make less than $9,350.
- Can I get the child exemption credit, Earned Income Credit, if I am self employed? What do you mean by the "child exemption credit?"...
- What is the deal with the income tax? Am I required to pay an income tax by...
- If i was pregnant half of last year and i only made 300$ for the whole year can i get income tax? Probably not. Answer:You don't "get" income tax, you PAY...
- Realized gains vs taxable income……help? i have realized gains of $61 and a taxable...
- What is the difference between taxable income and gross income? well not too much. Gross income is basically all...