Handling Taxs?

Question

I'm 15 and i just sold my website for $13,200 and the money was wired into my savings account. I want to know how would i handle paying taxes on that and would my parents have to file it or me? How much would i have to pay? Is there any more information i need to know?

Answer 1

It's your income, you file.

Are you a web designer delivering product or was this your business/asset?  How long ago did you acquire the site?  The answer affects which tax schedule you report the sale on.

As for payment, bank the full $13,200 until you get a handle on the tax treatment.

****NOTE****

The other post is acting as if this is an adult who sold a long term capital investment.

This is a minor.  He gets a $900 standard deduction and no personal exemption.  He is also subject to kiddie tax.  Even if this is a long term capital gain, the bill would closer to $2000.  If it's short term, it might be taxed at his parents marginal tax rate--which could be 35%.

Answer 2

You are responsible for filing a tax return and paying the proper amount of tax.  Your parents will probably help you with this.  You will have to file form 4797 which will flow to Sch D, then to form 1040.  The tax will probably be about $800.  You may also have to file a state return and pay tax there also.  This is complicated and you will probably have to hire someone to help you.  If you go to some place like Jackson Hewitt, Liberty, or H&R Block ask for an Enrolled Agent.   Or look for Enrolled Agents in your yellow pages under tax preperation

Answer 3

Congratulations - good job!

Listed to vb.  And this isn't something to take to Liberty, Block or Hewitt - take to an EA or CPA.