I am 19 and I'm wanting to start selling some of my artwork online. I live in Texas and I'm a dependant on my parents income. Do I have to pay taxes on any money I make, if so what's the percentage?=======>>it depends. UNLESS you are a full time student and you have unearned income of more than $2K, you are NOT subject to the Kiddie Tax;However, as a dependent, You may need to file a tax return if you had net earnings from self-employment of at least $400 on line 29/ 31 on Sch C of 1040, and also the amount reported on SCh SE of 1040 line 2/ 3 is also $00 or exceeds $400, then you need to pay self employment tax. Your self employment income is reported on 1040 line 12.However, if your taxable income, I mean the intone after standard deduction or itemized deduction or Sch A , whichever is larger, is $9,225, then your tax rate is 10%. If your taxable income is zero, then no tax liability. As you are a dependent of another person, you cannot claim any dependents on your own return.
Is there a certain amount of money I can make before I'd have to pay any taxes?=======>>As mentioned above;
When it comes to selling in state and out of state do I have to charge either state tax?======>In your home state of TX, no income tax , so you do not need to pay tax to TX Dept of Revenue, , however, out of your state , as a non resident of another state, you need to file return with the state’s Dept of Revenue once your income exceeds the state’s standard deduction as a non resident of the state.
Do I need a tax ID?=========>>Not really;if you want to open bank merchant acct for your biz, then you need a EIN; UNLESS you open your bank biz account, you do not need an EIN your SSN#’d be enough. |