Tax free money, but at the end of the year??

What is the name of your state? North Carolina

I'm 17 years old, I've made $3500 this month tax free...how do I know what to save for the end of the year when my employeer does whatever? No, I'm not getting paid under the table the taxes just aren't deducted when I get paid.

Save 10%.

thanks

Without ANY consideration for deductions or exemptions, you should put aside 18.32%.

This is based on $3500 per month, equals $42k annual. According to latest tax tables (see below), the tax on $42k (single) would be $7693 (or $641 per month). $641 per month is 18.314% of the $3500 per month income.

This does NOT include the 7.65% FICA deduction (or 15.30% if self-employed).

2002 IRS Tax Tables
http://www.irs.gov/pub/irs-pdf/i1040tt.pdf/

i'm sure i'll still have 15K or so saved up by the end of the year...that should cover it all.

I wish I would have made that amount of money when I was your age. Even though you may save enough money to pay the taxes you should probably pay estimated tax payments if your employer will not withhold the taxes for you. You could end up owing not only the back taxes, but interest and penalties for not paying your taxes timely. If i were you, it would be worth your money to go to a professional tax preparer.

There are no penalties or interest unless the taxpayer owes more than $1,000 AND the taxpayer did not make estimated payments equalling last year's total tax laibility.

Ex: T owes $25,000 for 2003, and had total tax liability of $15 for 2001 (income tax - credits + other taxes). T pays in $15 by Jan 15, 2003. T owes no interest or penalties as long as T pays the full $25,000 by 4/15/2003.

Ex2: T is mostly self-employed and owes $1300 for 2003 and had tax liability of $109 for 2001. T's total withholding was $80. T pays penalties on ($1300 - $109) for underpayment of taxes.