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How much do you have to make in order to not pay taxes?

Taxes! We hate paying them, so let's discuss maximizing tax deductions!

How much do you have to make in order to not pay taxes?

Postby morrison » Tue Dec 11, 2012 8:45 am

the place i work the owner doesnt claim taxes on me so how much do i have to make before i have to pay taxes
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How much do you have to make in order to not pay taxes?

Postby burgh77 » Tue Dec 11, 2012 8:51 am

FICA (Social Security and Medicare tax) are levied on dollar 1 ($1). So, your employer is treating you as either an independent contractor or "under the table).

There are IRS regulations regarding employee versus independent contractor. Many construction companies try to classify their employees as contractors.

The reason an employer does this is to avoid payroll taxes. An employer has to contribute to FICA for each employee, pay unemployment tax (state and federal) and carry worker's compensation insurance. By treating employees as contractors, they believe they can avoid these expenses.

You can contact the IRS, your state's Department of Taxation/Revenue (for state withholding) and your state's unemployment commission to report this employer. They will be happy to do an audit and determine if the employer is falsifying records or not.
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How much do you have to make in order to not pay taxes?

Postby athdara » Tue Dec 11, 2012 8:57 am

keep track of all you receive you will need to report this on sch C and if the 'net' amount is $400 or more you will also file Sch SE where you calculate your self employment tax
all this may not amount to your non taxable income(personal exemption and standard deduction) but the self employment tax will have to be paid
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How much do you have to make in order to not pay taxes?

Postby hadyn48 » Tue Dec 11, 2012 9:00 am

You owe taxes on yoru income even oif the owner is committing tax fraud.
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How much do you have to make in order to not pay taxes?

Postby pearson » Tue Dec 11, 2012 9:03 am

$1.

The owner should be giving you a W-2. Give him a W-4.
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