| 1. I?m a 20 year old college student and I work as an Independent Contractor with a tutoring company. I go to college in Florida and live in Georgia. My parents do not want me to have a job because they think it will distract me and other random personal reasons - but basically the gist is: my parents don?t know that I have a job and I do not want them to find out. I am a dependent of my parents but I want to file my own taxes next year so they do not find out about my job. If I file my own taxes separately next year, I have been told that ?As long as you indicate they are claiming you, they will NEVER know anything. ========>Yes they do since they claim you as their dependent on their return;
They will never be notified. Even though they are your parents, it is a violation of your privacy to share the details of your tax return with them.?========>Well it depends; I guess it is up toyou and your parents nobody can tell it is good or bad.
I just have to mark ?Someone else can claim me as a dependent?==========>aslongas they claim you as their dependent then, yes.
and I can file my own taxes without my parents knowing, correct? ===========>>I think that you might as well discuss the issue with your parents not to make any confusion in filing returns ; since even you have a job this year, they can still claim you as a dependent ontheir income taxes, provided you are still considered a qualifying child based on IRS guidelines. However, depending on how much income you earned, as said, you may have to file your own tax return, too.
Will this cause any legal issues?=====>not really; however, when they claim you as a dependent, they get an exemption. This lowers their taxable income and reduces their tax liability. However, you may not claim a personal exemption on your return as long as you are claimed as a dependent. You may have to file an income tax return if you earn enough money, although this won?t necessarily affect their ability to claim you as a dependent. to claim you as their dependent, they must meet either the qualifying child test or the qualifying relative test. To be a qualifying child,you must be either younger than 19 years old, or be a student younger than 24 years old at the end of the calendar year. Additionally, you cannot have provided more than half of your own support for the tax year. Further, you must have lived in their home as your principal residence for more than half the year. If you live away from home because of school, they can still count their home as your principal residence.aslongas thy qualify these requirements then they, still claimyou as their dependent on return. So if they are able to claim you as a dependent, whether or not they actually do, then you are not able to claim yourself.
2. If I will be earning money from January to June 2018 of this year, when do I have to file taxes? I think it's next year, but I really have no idea...===========>it depends; as an IC , you are a self employer, so you may need topay quarterly estimated taxes; for example, Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1k or more when their return is filed; however, You don?t have to pay estimated tax for the current year if You had no tax liability for the prior year of 2017;You were a U.S. citizen or resident for the whole year of 2016; Your prior tax year covered a 12-month period. So I mean unless you paid taxes toIRS in2016 on your 2016 return, you do not need to pay estimated taxes; REMEEBR THIS AS SAID, Most people who are reg W2 employees don't have to worry about estimated taxes because they have taxes withheld from their paychecks. However unless you are an W2 employee, however, then there's no one withholding taxes from your paycheck for you.so once you'll owe more than $1k in federal taxes at the end of the year , the IRS requires you to make estimated tax payments 4 times a year rather than waiting until April 15 to pay it all.In your case as you said, I guess you do not need to pay estimated taxes to the IRS/your state since you were claimed on your parents? 2916 return. When you pay your quarterly estimated taxes, you are supposed to pay for the money you earned each quarter. So, when you make your quarterly payment on April 15, you are paying on the income you had from January 1 to March 31 of that year and also need to pay estimated on June 15 for the income from april to may and need topay on july 15 for the self employment income earned in june.
3. If the only job I have is the one above as an Independent Contractor Tutor with a tutoring company, exactly what taxes do I have to file? =====> you as an IC a self employer, need to fiel so called Sch C of 1040; aslogn the amt on the form line 29/ 31 is $400 or more than $400, then you need to file your return with the IRS/ your state dept of revenue also aslongas the amt on sch SE of 1040 is still $400 or exceeds $400 you must pay self employment taxes and claim 50% of the taxes on your 1040 line 27.when you fiel Sch C of 1040 to report your self employment income you can claim biz related expenses to reduce your taxable self employment income on the form also.
 | 
Linear Mode
