What would you like to do?
Do you have to pay taxes each year?
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That would be a great birthday present, but no such luck. There are no start or stop ages for paying taxes. Anyone of Amy age who has taxable income may have to pay tax. It …is always better to file a return, especially if no tax is due or you don't even have o file a treturn, because ONLY good things can happen if you do....like refunds, incentive payouts etc.
This would be your choice and depending on your filing status and other information and the amount taxable amount of the distribution and your age you will have make this deci…sion your self because you are the only one that has knows all of the information that you will need to help you decide how you want to do this. You are the only one that has all of the necessary information that will have to be reported on your income tax return for the year in order to do the calculation for the numbers that you are looking for. If you would like to do some estimated tax calculations you would need to go to the IRS.gov website and use the search box for 1040ES go to page 7 for the estimated tax worksheet and page 8 has the tax rate schedules. You can find the estimated tax worksheet and instructions by using the below enclosed Related link You are welcome to try any of the calculators for some estimates to get an idea of what things may look like after using the correct IRS forms and compare the numbers. Click on the below Related Link
The tax rate for a $125,000 per year salary would be up to 25%. This would be up to $31,250 per year in taxes.
UK Answer Anyone who is a 'taxpayer' in the UK has to pay tax on interest earned. If the 16 year old is in full-time employment or is earning other sums then they… could be a taxpayer and not exempt from tax at source on interest.
proportional tax or flat tax
There were 131,113,969 returns filed in 2004. Of those who filed, 42,545,501 (32.4%) had zero tax liability. This is estimated to increase to in excess of 40% in 2009. A filer… can represent an individual, a household or in some instances a small business in the form of a proprietorship. Contrary to a quip previously posted that only the poor pay taxes, the top 1% in terms of adjusted gross income (AGI) account for 39.9% of income tax collected in 2006. The top 25% (AGI > $64,702) account for 86.27% while the bottom 50% of filers by income don't even add up to 3% of collections. - BB From the Tax Foundation: In 2004, a record 42.5 million tax returns - one-third of all returns filed - had no income tax liability because of the available credits and deductions in the tax code. This is a 42 percent increase in the number of zero-tax filers in just four years. In addition to these zero-tax filers are the 15 million individuals or households who do not earn enough to file a tax return. Overall, nearly 58 million taxable households are outside of the income tax system. These findings raise serious questions about the future of the U.S. income tax system. Are any future tax cuts, or even tax reforms, possible when the lion's share of the tax burden is increasingly borne by a shrinking pool of taxpayers who - at least on paper - appear to be "upper-income"? And will the expanding pool of non-payers demand even higher income taxes? http://www.taxfoundation.org/research/show/542.html
he pays 40% to the state of new york, and another 10% to his agent. the 22 million dollars he makes quickly turns into 11.
If you earn a paycheck, then some of that money goes to taxes.
According to the Tax Foundation, a nonpartisan organisation, the average American pays an average tax rate of 12.60% percent on their income as of 2008. According to th…e figures released from the 2007 US Census the median earnings of men who worked full time, year-round were $45,113 and women were $35,102. Arithmetic provides: Tax for Men: $5684.24 Tax for Women: $4422.85 According to figures based on the average reported income of Americans, as tabulated by data collected from income tax returns in 2008, the median income of all people, both men and women, is $31,987. Tax on Average: $4030.36 Please consider that this was in no way calculated by an economist or an actuary with accredited math skills, also that this only represents income tax and not other forms of tax and that the figures available from the sources mentioned are not always compatible. However I believe that this answer may be marginally more educational than the former one which stated the unfounded and likely erroneous figure of $10 million.
Despite popular belief there is no age limit for which taxes do not exist...it depends merely on how the income was created and how much was created. There is no "Age Exemptio…n" from paying taxes.
Why does the government asks employers to withhold tax money from each paycheck instead of requiring taxpayers to pay a full years taxes all at once?
First, even many, many of those people who had withholding from paycheck throuh the year, and then find they are a little short of what they ultimately owe (for whatever… reason - other income, good investing, claim to have too many exemptions on withholding, etc.) have a great deal of trouble getting even those small sums to pay the tax. They are - like so many - perpetually broke and can't/don't save money. They would be broke even if they had more money, always will be. (They would spend the money they need to pay taxes...but they need that money to py taxes...where will it come from?) And of course, the government needs the income through the year too...it pays it's bills all the time, not just annually.
The IRS has a ten year statute of limitations to collect taxes, generally. This ten year clock starts running when the tax is originally assessed (when you file a return…). I say generally because there are a lot of things that can stop that ten year clock from running. Simply put, if there are any circumstances that prevent the IRS from collecting the clock stops. This can include filing bankruptcy, filing certain appeals with the IRS, filing a law suit against the IRS, submitting an Offer in Compromise, etc. Even being out of the country for more than six months stops the clock (no sense in running to Mexico).