Krystal Kacey
Member
Cash: $ 3.40
Posts: 15
Joined: 16 Sep 2009
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| How should a minor go about with taxes? |
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You will file a form 1040 along with a schedule C (or probably C-EZ) and a schedule SE. You'll show your income and any associated allowable expenses on the schedule C, then use the number from the bottom of that schedule on your schedule SE to calculate self-employment tax, then take the numbers from the bottom of both of the schedules onto your form 1040 to calculate your total tax.
I hope you didn't spend all of the money. You'll owe around $900 in federal taxes all together - most of that is for self-employment tax.
Depending on where you live, you might also have to file a state and/or local tax return, and pay something there.
If you just ignore it and don't file, eventually you'll get a letter from the IRS and from your state telling you how much you owe - by that time there will be interest and penalties, and you could owe a lot more than if you just take care of it now.
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