How much would i owe on tax?

Question

I deliver newspapers to the racks and stores and I get paid up front so i know at the end of the year i am going to have to pay something I make about 700 a month and i filled a w-9. I just found out about the mileage thing so tonight i'm going to be logging it for the first time missed the first 2 1/2 months thought started in the middle of may. when i deduct my mileage would they just take that out to pay what i owe and about how much would i owe.

Answer 1

You will not owe taxes on the first $5,350 of earned income if you are being claimed as a dependent on your parents income tax return.  After deducting the millage you most likely will have made less than that. Generally you would not file unless it would be to claim a refund on the taxes withheld.

Actually, if you were to use a tax professional it make actually cost you more to file a return than you would receive in refund. You are not required to file if your net total income is less than $6,650 - which is approximately what you said you would be earning before you deduct your mileage - meaning you would not be required to file.

More information at

www.irs.gov

www.proservtx.com

Answer 2

This is self employed income. It is reported on schedule C or C-EZ and income is subject to SE tax at 15.4%.

Read about self employed (or independent contractor) tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-...