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    Speak Up! - View Question #21096


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    Question: i was told by a friend that if you make less than $7800 a year you are exempt from taxes is this true

    Answer: It isn't quite that easy - according to the IRS website, if your taxable income is $0 to $7,500 your tax is 10% of the amount above $0 - "Taxable Income" is the key phrase here: The IRS allows for deductions which are explained on yearly tax forms & publications. This link is to the IRS tax chart- http://www.irs.gov/formspubs/article/0,,id=150856,00.html

    Comments
    1 thru 1 of 1 comments    [ 1 ]   
    On 08/01/06
    Nico from AZ said:
    If you look closely at your W-4 form, read line #7. It says (a) I did not owe federal income tax last year AND (b) I do not expect to owe federal income tax this year , then enter exempt. What this means is if you are not making enough money i.e. part time job , summer job , or working for minumum wage, you will probably not be making enough income for the government to keep any of it. After all, we the "little people "should not be considered a savings and loan source by the government. If in doubt just ask the IRS, even though they are often reluctant to admit it it is in most cases true.
    1 thru 1 of 1 comments    [ 1 ]   



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