Hey everyone, this is my first year working as a 16-year-old, and I was wondering if I’ll need to pay taxes when the time comes. I make less than $12,000 a year. I also have another question: my parents are setting up a UTMA for me, and I’m curious if it will be taxed. I plan to keep the UTMA as a long-term investment and won’t be using any of the money. If it is taxable, would it count toward my parents’ annual income? I’m asking because we receive government assistance as a low-income family, and I don’t want my decision to invest in the future to negatively impact them. Any advice would be appreciated! Thanks.
You pay the same taxes on earned income whether or not you are a minor.
In your state, you pay the same amount in taxes as a thirty-year-old who makes the same amount of money.
According to your description, you would be subject to FICA tax and probably state income tax but not federal income tax.
My manager wanted to know if I applied for a 1099 or a W2, so I asked her this question. I didn’t know what that meant, but every pay cheque doesn’t include taxes with it. I’m not sure whether that helps, but I would really appreciate some assistance.
Are there no FICA taxes deducted from your salary? Do they pay you 100.00 if you make 100.00?
Yea i suppose so… My pay would be $120 if I worked 10 hours and earned $12 per hour. I was a little confused because they withheld additional taxes and fica from me at my previous employment.
It seems as though they are paying you in accordance with a contract they have with a business. What sort of labour is that?
That’s probably because it’s my boss’s first time managing a business, even if I’m instructing right after school.