Tax question, would truly appreciate your help?

I work in insurance and had a customer come in today who was quite frazzled. he is worried about his taxes.

He had been an employee with his step-father doing a lawn service business and found out this year that he was considered "sub-contract" labor last year...he never had any taxes taken out and typically gets paid by cash....

He is 19 and makes about $7500-$8000 a year working for his dad. It is his only job and only source of income.

Does anyone know what his tax liability is? Or do you know if he is still considered "below" the poverty line and thusly does not owe any taxes?

No, they do not claim him. He lives with his girl friend....

I told him he was probably getting screwed on this because of the way his step-dad filed.

Anyone earning more than $400 needs to file a federal return. He will owe federal tax on the money he earned, as well as Social Security taxes and self-employment tax. Get a copy of Turbo Tax and complete the forms today, if possible.

There aren't any "poverty lines" in taxes. If his parents do not claim him he will owe about $1130 in self-employment taxes. If his parents do claim him (is he a full-time student???), he will owe $300-$400 more.

Tags

　　Branch Offices 　　Temporary Offices 　　Shared Offices 　　Commercial Space 　　Office Space 　　Business Services 　　Business Address 　　Call Forwarding 　　Call Handling 　　Answering Service 　　Telephone Answering 　　Mail Forwarding

Related information

What are my chances of getting into the following colleges?

Unfortunately with those sats it will be difficult at the more prestigious school like the ivies or BC. But the rest look a possibility. For the others apply if you like, but I don't like yo...

Any ideas for a slogan?

Leaf it to us! Our grass is always greener. We mow, blow, and go! We're the "outdoorsy" types. We're growing, one blade at a time! I hope that helps!

...

How do I cope with my wife leaving me?

aww i feel for you.what you have been through with you heart etc...and then she does this which damages your heart even more.please dont let her come and go when she wants.if you accept her now she...

What are some universities with good Accounting program?

CSUF has a very good accounting program, that is respected by top companies. It is a cheaper school 1700 a semester for your classes and is still respected. Don't let the CSU throw you off.

Can i get a scholarship to college?

Can you? - yes. Is it likely? - I have no idea. Your best bet is to contact them. But if you are after scholarships there is an old saying - beggars can't be choosers. Shop around a bit an...

Gpa is 2.7 and i want to transfer to a 4 year college from community college. and i need help to figure itout

GPA is very important when academic advisors look at college applications but it isn't everything at the same time. Your community service is outstanding and you will definitely stand out. App...

Should fast food establishments get rid of drive-thrus?

I have never worked at a fast food restaurant. I do know that the drive thru serves as convenience. Convenience for say a mother with a van load of kids that if went inside would be all over the pl...

Why cant we build support for the fair tax? Is it so Wrong?

Tax has become a juggernaut and in all Western Countries it is now a beast with a varacious appetite that needs to be fed daily and has a temper if it gets hungry. In the UK over 45% of all inco...