How do you file your taxes if you are 18 living with your parents at home and get paid cash and are expected to make 20,000 a year.

[Jailly]

Would you still be allowed to file as a dependent on their taxes ?

[DoninGA]

If you are being claimed as a dependent you can file your own tax return.  On your return you select that you are being claimed as a dependent.

Since you are being paid in cash, assume that you are self-employed.  You are required to report your self-employment income and expenses on a Schedule C which is part of and included with your personal tax return.

You will owe Self-Employment taxes on the net profit from self-employment income.  This is taxed at 15.3% of 92.35% of your net profit.

Use the TurboTax Free File program if eligible so there will be no charge to file a federal or state tax return.

Use the TurboTax Free File program if you are eligible - https://freefile.intuit.com/
If you are eligible you can use the TurboTax Free File Program which is free to file both a federal and state tax return. The Free File Program edition is a full featured personal tax program and on a separate website from the TurboTax online editions.

To qualify for free 2019 federal and state tax returns with the Free File Program, you'll need to meet at least one of these requirements:

• A maximum 2019 adjusted gross income (AGI) of $36,000; or
• You qualify for the Earned Income Tax Credit (EITC); or
• You served as active duty military (including Reservists and National Guard) with a maximum 2019 AGI of $69,000 (you'll also need a military-issued W-2).

[Jailly]

So since you are not being withheld anything from the cash payments thats what they will charge you when you file your taxes ?

[DoninGA]

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@Jailly wrote:

So since you are not being withheld anything from the cash payments thats what they will charge you when you file your taxes ?

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Yes.  You may also have federal income taxes owed along with having Self-Employment taxes owed.

[Jailly]

But if you have an employer would they be able to help you file ? Seeing as how you need to provide the information for where you work, or can you just do it on your own ?

[DoninGA]

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@Jailly wrote:

But if you have an employer would they be able to help you file ? Seeing as how you need to provide the information for where you work, or can you just do it on your own ?

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You can do it on your own.  If you were an employee then you would be receiving a pay statement on a regular basis and a W-2 after the end of the year in January.  Since you are being paid in cash I assume you did not give your employer a Form W-4 to have any federal taxes withheld from your income.  And you are not having any Social Security or Medicate taxes withheld from your income. 

The Self-Employment taxes are for the SS and Medicare taxes that are required to be paid by everyone who receives earned income.

[Jailly]

Ok ok, so since I'm getting paid cash and they are not withholding anything I am the one who should be giving them the w-4 form to do so to prevent me from having to pay so much later on ? What if I don't have a social ? I can file with an itin number correct ? And during tax time I would pay all of what they did not withhold during the year, right ?

[DoninGA]

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@Jailly wrote:

Ok ok, so since I'm getting paid cash and they are not withholding anything I am the one who should be giving them the w-4 form to do so to prevent me from having to pay so much later on ? What if I don't have a social ? I can file with an itin number correct ? And during tax time I would pay all of what they did not withhold during the year, right ?

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Yes you can file with an ITIN.  Yes, you would have to pay during tax time any federal taxes and SE taxes that should have been paid during the year based on your income and after your expenses and deductions.

If your employer is not treating you as an employee then they do not have to accept a W-4 from you for federal tax withholding.

See this IRS website for when you are considered an employee or an independent contractor - https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

[VolvoGirl]

If they don't take out any taxes or SS and Medicare (FICA) you are not an employee but an independent contractor.  Instead of giving you a W2 at the end of the year they should give you a 1099Misc if they paid you more than $600.  Did you get a 1099Misc?  I would ask them about it.

You only give them a W4 if you are an employee getting a W2.

[Jailly]

No, they did not give me one. But I will definitely ask them. Thank you 

[Jailly]

Thank you for the help.