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  1. #1
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    Filing taxes for 4-6l income yearly?

    I am 16 years old and I make about 4-6k per year before expenses. (off websites) Do i still have to file taxes? Or what would I need to do?
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  2. #2
    Yes you do.

    Ask your parents, they should be able to help out.
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  3. #3
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    Actually, you can get away without filing taxes because you're most likley not a legally registered business.

    However, you will need to fill out a 1040 (I think)

    I would have exact info you you but I'm real busy.
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  4. #4
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    Now that I think of it, I wouldn't even claim it.
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  5. #5
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    Quote Originally Posted by crspyjohn
    I am 16 years old and I make about 4-6k per year before expenses. (off websites) Do i still have to file taxes? Or what would I need to do?
    Yes, you have to file. Odds are you will owe a rather minimal amount given your small revenues overall. One thing that might catch you unexpectedly, though, is self employment tax.
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  6. #6
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    Yes, you do. Even if you do not end up paying taxes (most likely you will have to pay SE Tax (self employment), since you are a business, you have to file. Carp's reasoning of "most likley not a legally registered business" does not matter. You are a sole proprietor.

    The best thing: Go ahead and get one of the free tax programs (Tax ACT) and try a simulation numbers and see what happens.
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  7. #7
    You must file because you have taxable income.
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  8. #8
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  9. #9
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    How much do I have to pay for taxes? Is there a website to teach me this stuff? I'm wondering because recently adversal has asked for tax/ss number because I reached the $$ limit.

    It has only been a few months and i have a gross income of around 2-3k. I'll research more tomorrow when I get some time.
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  10. #10
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    Quote Originally Posted by Carp
    Now that I think of it, I wouldn't even claim it.

    What an irresponsible thing to tell this kid.

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  11. #11
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    This has to be claimed under your parents 1040. You cannot file because you are under 18.
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  12. #12
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    Quote Originally Posted by Velostream
    This has to be claimed under your parents 1040. You cannot file because you are under 18.
    Where is the world did you get this idea? Do you know how incorect it is?

    He can file 1040, Sch. C, and any other tax forms that he needs even if he is under 18.
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  13. #13
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    Quote Originally Posted by AceWeb
    Where is the world did you get this idea? Do you know how incorect it is?

    He can file 1040, Sch. C, and any other tax forms that he needs even if he is under 18.
    This is what we did and were advised by our Accountant at HR Block when I was in high school. I ran a business that generated 1-2k per month. I was 16 at the time. Tax laws might have changed since then. But this was because the business was legally registered under by mother, even though she didn't do anything with the company.
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  14. #14
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    Quote Originally Posted by Velostream
    This is what we did and were advised by our Accountant at HR Block when I was in high school. I ran a business that generated 1-2k per month. I was 16 at the time. Tax laws might have changed since then. But this was because the business was legally registered under by mother, even though she didn't do anything with the company.
    This is still not 100% correct, but a totally different case when the business is registered under your mother - then yes, it is her business and she needs to report it.

    The original poster did not say that the business was registered under someone else, so your solution for his question is wrong.
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  15. #15
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    Quote Originally Posted by AceWeb
    This is still not 100% correct, but a totally different case when the business is registered under your mother - then yes, it is her business and she needs to report it.

    The original poster did not say that the business was registered under someone else, so your solution for his question is wrong.
    I could care less whether or not you feel it was 100% correct -- and considering you just contradicted yourself in one sentence, I won't be looking to you for advice. We have never had a problem with the taxes since it was paid in that fashion.

    The OP did not specify -- so if the business is legally registered under one of his parents, then my advice does apply.
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  16. #16
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    I invite anyone with an ounce of common sense to read through all of these posts, offering free tax advice (which usually ends up costing a whole lot more than free) . Notice a scary trend? How about many different suggestions, theories, interpretations of the law, etc.?

    This thread should serve as a very strong warning to anyone thinking about taking tax or legal advice from an online message board. Talk to an accountant in your area, or you're taking a VERY huge risk by listening to this "I heard from a friend who knows a guy who is married to an accountant" advice.

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  17. #17
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    The problem is that you did not say, in your initial post, that the business was under your parents. That is my point.
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  18. #18
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    Quote Originally Posted by AH-Tina
    I invite anyone with an ounce of common sense to read through all of these posts, offering free tax advice (which usually ends up costing a whole lot more than free) . Notice a scary trend? How about many different suggestions, theories, interpretations of the law, etc.?

    This thread should serve as a very strong warning to anyone thinking about taking tax or legal advice from an online message board. Talk to an accountant in your area, or you're taking a VERY huge risk by listening to this "I heard from a friend who knows a guy who is married to an accountant" advice.

    --Tina
    Sound advice.

    DO NOT SOLICIT ADVICE FROM ANYONE ON A MESSAGE BOARD ON ALL MATTERS FINANCIAL. PERIOD..
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  19. #19
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    Quote Originally Posted by AceWeb
    The problem is that you did not say, in your initial post, that the business was under your parents. That is my point.
    No. But my second post did.
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  20. #20
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    Quote Originally Posted by AH-Tina
    I invite anyone with an ounce of common sense to read through all of these posts, offering free tax advice (which usually ends up costing a whole lot more than free) . Notice a scary trend? How about many different suggestions, theories, interpretations of the law, etc.?

    This thread should serve as a very strong warning to anyone thinking about taking tax or legal advice from an online message board. Talk to an accountant in your area, or you're taking a VERY huge risk by listening to this "I heard from a friend who knows a guy who is married to an accountant" advice.

    --Tina
    Very true. This is why people get in trouble with taxes because they listen to advise from people who do not know anything or only think they know.
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  21. #21
    Quote Originally Posted by crspyjohn
    I'm wondering because recently adversal has asked for tax/ss number because I reached the $$ limit.
    Ouch. Did you tell them, yes... it has reached the limit. That is why my price just went up 32%.

    Make sure you document deductions. You probably won't get the big deduction (yourself) but with good recordkeeping you can get your tax down to zero. if about $4000 in deductions can be claimed.

    And yes, like the rest said, tax advice in a forum isn't a good idea. We won't be accompanying you to the IRS office to back up our wise tips. And a mistake on your taxes usually means you pay big $$ to uncle sam. A $300 mistake can equal $1500 or more in interest and penalties.
    Last edited by page-zone; 09-06-2006 at 08:10 PM.
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  22. #22
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    Probably best to contact a tax accountant, the IRS or work with your parents on this.

    Best of luck!

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