Jump to content

Is it true that you don't have to pay taxes if you earn under 14k?


Recommended Posts

A family lawyer on my dad's side said that single adults do not have to pay taxes unless they earn over 14k per year and 22k for married couples. I never heard of this before but he seems to know what he is talking about since he is a financial lawyer. I just wonder why no one else talks about this. Is it some sort of loophole people aren't suppose to know about or does he have something wrong? 

Link to comment
Share on other sites

I bet you the number is higher then that with all the deductions and things out there. I found a great little graphic that looks like it demonstrates this. If your income equals or exceeds the below numbers you will need to pay taxes. 

Tax Bracket

Source: https://www.forbes.com/sites/kellyphillipserb/2018/01/24/do-you-need-to-file-a-tax-return-in-2018/#40a9f91c1b2a

 

  • Like 1
Link to comment
Share on other sites

Unfortunately I don't think that's true. In the US at least, you are required to claim anything you make that reaches above $400 or $600. So if you get a check for $600 for work you did, you need to file that. So to answer your question, no, you will still have to file with that amount made in the year. Eventually the IRS will want those details from the years you don't file. They literally want to know every cent you make. 

Link to comment
Share on other sites

I mean, has anyone tested this out? I know someone (family member) who earns under the table and hasn't paid his taxes in years. I am not sure how much he makes but it isn't much. He makes just enough to get buy most of the time. I would guess he should be paying though. I think he would be earning over 20k and he is not married. 

Link to comment
Share on other sites

20 minutes ago, Mila said:

I mean, has anyone tested this out? I know someone (family member) who earns under the table and hasn't paid his taxes in years. I am not sure how much he makes but it isn't much. He makes just enough to get buy most of the time. I would guess he should be paying though. I think he would be earning over 20k and he is not married. 

Not that I want the IRS to come chase me down but if its all cash you are making and its not being reported from either side who is to know :P. 

  • Like 1
Link to comment
Share on other sites

20 minutes ago, James said:

Not that I want the IRS to come chase me down but if its all cash you are making and its not being reported from either side who is to know :P. 

I am fairly certain that is his logic. Like there are people out there who advocate that teen girls who babysit should be paying taxes on their earnings, that is just ridiculous! I think there are a lot of loopholes and ways around stuff we are not meant to know about. One thing I do know though is that Bezos knows a lot of the tricks to avoiding taxation. I can't remember how to explain it but he funnels money through a separate company so it is as if Amazon earned him $0. 

Link to comment
Share on other sites

1 hour ago, Mila said:

I mean, has anyone tested this out? I know someone (family member) who earns under the table and hasn't paid his taxes in years. I am not sure how much he makes but it isn't much. He makes just enough to get buy most of the time. I would guess he should be paying though. I think he would be earning over 20k and he is not married. 

If he's not reporting it, he likely won't have any issues. But if the IRS catches on that he has been making money all this time, they may come after him for back payment. They will just garnish any wages they can find elsewhere. So if you have an online account, they may find that, and garnish any money owed. 

24 minutes ago, Mila said:

I am fairly certain that is his logic. Like there are people out there who advocate that teen girls who babysit should be paying taxes on their earnings, that is just ridiculous! I think there are a lot of loopholes and ways around stuff we are not meant to know about. One thing I do know though is that Bezos knows a lot of the tricks to avoiding taxation. I can't remember how to explain it but he funnels money through a separate company so it is as if Amazon earned him $0. 

I can understand that. If she is being paid cash, and it isn't a lot, it shouldn't be a problem. Technically they need to file if they make upwards of $400-$600 a month on that job, but if it's in cash, it probably won't be reported by either side. Unless the person hiring you reports that they're paying you, then you will need to file taxes for sure. As well, if it's like an actual job, where taxes are taken out of your pay, then for sure you need to file. 

Same with any online earnings, you should file, as the establishments you're using to receive said cash, will likely report any earnings you make to the IRS anyway. 

  • Like 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...