In the state of california, how much can teens earn without being taxed?
Answer:
If you are doing this as a business, then you will owe "self-employment" tax on income earned over $400. It's not very much money before you owe tax! Self-employment tax is the US social security tax. It goes towards these things: retirement and medical costs for the elderly, disability pensions, and medical costs for the financially disadvantaged.
If you are just selling your rights to a domain name, you may be able to treat this as a capital gain instead, which has a higher threshold and lower tax rate.
Unfortunately, you're going to need to get the rest of your answers to your question from your parents' tax accountant. As of the year 2006, you are taxed at your parent's rates. This is a new law enacted by your Congress and your President which unfairly taxes you at a higher rate than the same income earned by an 18 year old.
If you think this is unfair (I sure do!), you should write to your congressperson to complain.
you are exempt if you are a student at 14 years of age, but you still need to report.
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