The moment tax time comes around each one of us are filled with all the types of questions. One principal question which continues to be raised is how much money must one make you to classify taxes? It never fails to be a higher question. If you are an employee or you are independent the rules for taxes of classification are different.

According to the IRS, for a regular employee you have to file taxes when you earn $3400 or more in a given fiscal year. If you earn less than that you do not have to file taxes. You should file a tax return anyway because you can still get a tax return. There is no sense in letting the government have money that you have coming to you.

If you are an employee, your employer probably withholds income tax from your pay. Tax may also be withheld from certain other income — including pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to the IRS in your name.

If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. People who are in business for themselves generally will have to pay their tax this way. You may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well.

If you are self employed, you have to file taxes when your income is at least $400. That is minus your cost of expenses you accumulated over the year. Plus being self employed you are going to end up paying the full amount for taxes as employees will pay half and the employer pays the other half. Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

You figure SE tax yourself using Schedule SE (Form 1040). Social security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct half of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct social security and Medicare taxes.

It may sound like it, but it's not quite that simple. There are lots of other factors involved when you answer the question of how much do you have to make to file taxes. There are 3 more factors like your age, filing status, and the type of income you receive.

If you are a minor who makes more than $5,350 then you have to file taxes. Make less and you will not have to. If you file as single you will pay more but if you file head of household then you will pay less. If you are 65 years of age and you collect social security then you don't have to file.

Find out how much money do you have to make to file taxes?, Learn key strategies to help you save money when file taxes. If you own a Website you must Own The Domain Tax Guides

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