What is the name of your state? Nebraska
My 12 year-old son has a paper route. He started in June. He is an independent carrier and no taxes are withheld from his check. He earned about $3200 in 2004. I crunched the numbers in Turbo Tax and it says he owes a hefty amount for self-employment tax (about $440). The IRS website gives conflicting information. In one place it says that children under 18 are exempt from self-employment taxes, in another it says anyone who earns over $400 has to pay it regardless of age. So which is it? He doesn't have the money to pay it, though I suppose he has until April 15th to save it. Will he have to pay into Social Insecurity? And if not, what forms do I use and how do I file it? He has no other income other than the $3200.
Thanks,
Christy
My 12 year-old son has a paper route. He started in June. He is an independent carrier and no taxes are withheld from his check. He earned about $3200 in 2004. I crunched the numbers in Turbo Tax and it says he owes a hefty amount for self-employment tax (about $440). The IRS website gives conflicting information. In one place it says that children under 18 are exempt from self-employment taxes, in another it says anyone who earns over $400 has to pay it regardless of age. So which is it? He doesn't have the money to pay it, though I suppose he has until April 15th to save it. Will he have to pay into Social Insecurity? And if not, what forms do I use and how do I file it? He has no other income other than the $3200.
Thanks,
Christy