Children and self-employment taxes

[ktlcorn]

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

[Snipes5]

Invest $100 and take it to a professional. I'm betting there are expenses you didn't account for.

He pays into Social Security through his tax return, that's part of what "Self Employment Tax" is.

This coming year, have him save some of the money he earns, that's where the money comes from to pay his taxes. He should save about 20% each week.

Snipes

[abezon]

A newspaper carrier under 18 does not pay SE tax. There should be a box to check or a marginal entry you can make on the schedule C or SE.