Do you have to pay tax for the earnings before you beocme a W2? (employee, 2013)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you are a W2 employee your employer will take taxes out of your check automatically. Once a year, by April 15 you will need to file a tax return to see if you owe more taxes or if you get a refund.
Tax rates depend on your income. FICA is 6.2%, various other mandatory deductions are about 1.5%, and federal taxes range from 10% to 35%. Your state may also charge you a state income tax.
It's complicated, but probably less than 30% overall.
I'm not a W2 right now so I don't think there is tax taken off automatically like they do with W2s... Do I have to return some money earned as someone before W2 or how does this work?
How are you being paid? If you are an individual contractor you are essentially self-employed and will have to declare that income on your taxes. You are right, not taxes will be withheld, but that does not mean that you are not liable for them. The company who is paying you may send you a MISC 1099 that you can use to report your income, but you may want to check with them to see if they will. If not you will have to keep records of the payments yourself.
I don't know. Do self employed people pay less tax?
No, they actually pay more because they are responsible for taxes an employer would pay in a W2 job. Someone, I'm sure, can explain this better than I can.
Do you look at your check stubs when you get them? If they took taxes (Fed and State), FICA, etc. you should have received a W2 in January showing last year's earnings and payments.
If no taxes were withheld you would have received a 1099.
Go to your employer on Monday. Ask for your tax documents. Then go to a tax prep service and have them do your taxes for you.
Normally I would tell you to do them yourself, but you don't possess enough knowledge to get started with that.
Deadline is April 15
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
