Income Tax Question?

Question

Is it true that if you make less than a certain amount, you don't have to pay income tax? I've heard that it is 3000 from someone, 4000 from another. Note: I am 18 years old.

Answer 1

Yes that's true.  The limit depends on the source of the income.  If it's on a W-2, then the limit is $5450 for 2008 if you are a dependent, and $8950 if you aren't.  If it's from self employment (didn't have social security and medicare taken out), then the limit is $400.

Answer 2

Sorry, your Uncle still gets in your pocket...but you don't have to file if you made less than $400.00.

Schedule X — Single

If taxable income is  over-- But not over-- The tax is:

$0 $7,825 10% of the amount over $0

$7,825 $31,850 $782.50 plus 15% of the amount over 7,825

$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850

$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100

$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850

$349,700 no limit $101,469.25 plus 35% of the amount over 349,700

Answer 3

Yes that is true!  While every dime is subject to income tax it is also true that everyone gets to take a standard deduction and most take a personal exemption.  For most folks that covers about $8,500 before you need concern yourself with paying income tax.  You would have had SS and Medicare taxes to pay and you could have withholding that you may wish to recover and therefore you would file a return anyway.

Answer 4

Yes, if  you make less than a certain amount, you don't have to pay any taxes -- however, if you've been working your employer has probably taken some money out of your check every week for withholding, so if you want to get that money back, you still have to file a tax return to get it!