W2 without withheld Federal taxes?

Forum|Forum|3 years ago
February 20, 2023
1 reply
11 views

So my dad purchased a laundromat and I work for him. He made me use quick employer forms to make the W2 for me as an employee and he pays me by Zelle with Chase. Well when you put the salary in it wants to auto fill the withheld taxes but he told me to type them in as 0 since well of course he did not withhold taxes but payed the full salary. So I'm wondering how do I now pay taxes? When I file my W2 in Turbo tax and enter all the info from my w2 in, by the end will I then get an amount of money of taxes I now have to pay as we were not withholding it through the years or should I have filled in the suggested withheld taxes on my w2 form and e filing it with 0 taxes payed is wrong?

Mike9241

Level 15

Child employed by parents. Payments for the services of a child under age 18 who works for their parent in a
trade or business aren't subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.

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so if your father's business is operated as a sole proprietorship or qualified partnership with mom and you are under 18 on 12/31/2022 no fica or medicare taxes is correct (box 3 through 6 on the w-2 are zero). so you file your return reporting the W-2 as is. don't know your wages so as to federal or state withholding maybe zero is the correct amount to be withheld. when you complete your return in Turbotax do you have a liability of more than $1,000 line 37 of the 1040.

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on the other hand, if you are not exempt from FICA, Medicare and income tax withholding your dad should run to a professional. there are extremely serious tax consequences for failure to withhold and failure to pay taxes that should be withheld.

Mike9241

DisninoAuthor

Level 2

I'm 22 and made about 2740 for last year. Unfortunately it's already e filed and being processed by SSA, I saw you can amend files once accepted, is it possible we can amend it and set the 0 on it to the correct amount, or maybe they will reject the form? Ah he just told me to write 0 so I assumed that I myself would pay these taxes when I file or something along those lines

Also it's sole proprietor and the social with Medicare total that should of been withheld should ve about 209.61

JamesG1

Level 15

Are you saying that a W-2 for you in the amount of $2,740 in box 1 has been transmitted and accepted? But now you would like to report the $2,740 as self-employment income subject to income tax and self-employment tax?

If that is the case, the IRS will be looking for that W-2 income to be reported on your Federal 1040 tax return.

The IRS will also be expecting the employer to remit the $209.61 in Social Security and Medicare tax payments and to be reported and paid on a Federal 941. In addition, other Federal and state forms are likely required to be filed.

The issuer may be willing and able to correct your W-2 with an IRS form W-2c.

I recommend that you not file a Federal 1040 tax return until the status of the W-2, W-2c and $2,740 self-employment income has been clarified.

@Disnino

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