Tax

Forum|Forum|5 years ago
November 20, 2020
2 replies
1 view

Ok so this is my first time entering the work force I’m entering a fast food place in December 2020 and I was wondering will I have to do my taxes when it’s tax time in 2021 or can I wait till 2022?

Not A Product Question

Anonymous

it all depends. is this your business? if it begins business in 2020 then likely a return would likely be due. this would be true if the business was a calendar year Corp, LLC, partnership or even a sole proprietorship.

if you are an employee it will depend on whether you get one or more paychecks in 2020 - if yes, you may have to file depending on your gross income, dependency status and whether any income taxes were withheld. if you are in a state with an income tax the filing requirements would be quite different.

if you are an independent contractor and you net more than $400 in 2020 - you would owe self-employment tax and possibly income taxes so you must file.

if you are an employee or independent contractor that performs work in 2020 but doesn't get paid until 2021, no tax return is due unless you have other types of income that may require you to file.

CLTOMARAuthor

Level 2

@12309 I’m a employee and this is my first time ever working so can I wait till 2022 to do my taxes?

Bsch4477

Level 15

Any income paid to you in 2020 is taxed on your 2020 return which you file in 2021. But if your only 2020 income as an employee is from December, 2020, you would likely not have earned enough to have to pay tax. If any amount was withheld, however, you would want to file to get that refunded as well as to receive any credits you might qualify for.

CLTOMARAuthor

Level 2

@Bsch4477 what would happen if I don’t file in 2021? I’m new to this

Bsch4477

Level 15

You would only file to get refund of tax withheld and any credits you are eligible to receive. If you don’t make enough to have to file you do not have to but it is to your benefit to do so.