Taxes for 16 year olds.

[Bingo18]

What is the name of your state? Florida

I'm 16 and don't have a 'regular' job. I work at a local auto racing track, flagging in the turns. I get between $50-$100 a day working there in cash. They don't put it in their taxes so I guess it's the 'under table' type pay. I also do some web designing work to make a few hundered a year.

My question is, if I guess do this kind of work, do I need to pay taxes on it? I heard if your under 18 and making less than $800 a year you don't need to. But I'm making slightly around $1000.

What do I need to do about taxes and when do I need to pay them, if I don't now? So far all the money I'm earning is under the table.

Thanks

[Dandy Don]

Are you registered as a business in your state and county for the webpage work you are doing? If not, if the authorities ever find out you are receiving income that you are not paying taxes on, you are going to have to pay up.

The under the table work is also going to get you in trouble if the authorities ever investigate the race track, but as long as you are not receiving W2 forms from the state government and federal government for taxes that are supposed to be withheld, then you don't have to submit any tax forms because you don't qualify to receive a refund.

[fairisfair]

Are you really saying that just because you don't get a W2 from a company that you are not required to disclose that income on your taxes?? I have to disagree, in fact you are specifically asked about income for which you have no W-2.

[Dandy Don]

Of course he is responsible for paying taxes. But if he tries to do the right thing and tries to pay taxes and then the state and federal taxes find out about his under-the-table income, he is asking for more trouble than he knows as they try to figure out exactly what is going on, and they are going to go after him and his employer with penalties. Best for him to leave things alone now and consider getting out of this line of work and find another job with an honest employer who is more responsible and willing to abide by the law in keeping records about taxes that are withheld.

[xylene]

Where are this kids parents?

If my parents knew I was working under the table I would have my ass handed to me...

and then without my immediate knowledge my dad would start a fight with the jerk who was ripping me off...

Get a book on running a business and go legit.

The under the table crap at the track... well you are being abused.

[Bingo18]

I think you all are thinking it is a regular job like working at Walmart, but under the table?

It's more like working for your neighbor 1 day every 14 days. I do believe the racetrack is also a non profit one - or atleast just about one.

[LdiJ]

Anyone who earns more than 400.00 per year being "self-employed" is technicaly required to file an income tax return, and to pay self employment taxes. no matter their age.

Realistically the IRS doesn't have any interest at all at pursuing the income of teenage babysitters, grass cutters...or some teen that collects a tiny bit of income here and there....and 1000.00 over the course of a year is tiny. Self employment taxes are the only taxes that would matter.

However, establishing social security credits as early as possible certainly is becoming more important/signficant.