Maximum income I can earn without filing taxes?

Maximum income I can earn without filing taxes?

Postby swintun » Tue Mar 08, 2011 3:31 am

I would like to know, what is the maximum income I can earn without filing taxes? I'm an 18 year old recent graduate out of high school still dependent on my parents. I've read around online that the maximum income I can earn is $400 a year before I can start filing taxes. Is that correct?
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Maximum income I can earn without filing taxes?

Postby basset65 » Tue Mar 08, 2011 3:33 am

It's 400 as an independent contractor before you HAVE to file. You can file at any income. If you get W-2s you will not have to file unless your earned income is above $5700.
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Maximum income I can earn without filing taxes?

Postby barnet94 » Tue Mar 08, 2011 3:34 am

It depends upon the source of the income and whether you can be claimed as a dependent or not.

Self employment income: $400

Wage income if you can be claimed as a dependent: $5,700

Unearned income if you can be claimed as a dependent: $950

Wage and unearned income if you can be claimed as a dependent: $300 or more of unearned income and gross in excess of $5,700

Gross income if you can't be claimed as a dependent: $9,350
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Maximum income I can earn without filing taxes?

Postby marly68 » Tue Mar 08, 2011 3:37 am

Assuming that you will be claimed as a dependent...

If you got a w-2, the maximum income you can earn without having to file a tax return is $5699.49.

But if you DO file, you will get back all federal (and most likely state, if applicable) income tax that was withheld from your pay checks.

If you got a 1099 or worked "off the books", the max is $399.49.
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Maximum income I can earn without filing taxes?

Postby jesiah82 » Tue Mar 08, 2011 3:38 am

no, your parents have heard only part of it
the $400 refers to self employment income, which if you reported income and business related expenses and the net amount was $400 or more you would also be responsible for self employment tax
less than the $400 you can ignore the income and expenses since as a dependent of your parents(until age 19) you can claim up to your standard deduction of $5800, this is for 2011($5700 for 2010)
once you reach 19 and no longer in full time school, this changes
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Maximum income I can earn without filing taxes?

Postby philibert87 » Tue Mar 08, 2011 3:39 am

If all of your income is on a W-2, you can make up to $5700 before you have to file. The $400 limit is for working that isn't on a W-2
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Maximum income I can earn without filing taxes?

Postby tannere39 » Tue Mar 08, 2011 3:41 am

Well, filing taxes is usually a good thing if your making less than say 20,000 a year. That's because with the deductions, exceptions, and credits, you usually get a refund on the money that was already deducted from you paycheck. So it's hard to say exactly what the cut-off is, as it depends on a number of factors.
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