- quote -

Well, not so fast... If she's married (and being a wife, I
assume she is) and claims, say, one withholding allowance on
her W4, she would have to make $370 in a two week period
before any federal income taxes would be withheld (under the
"old" rates). It's hard to tell from the question, but I'm
guessing that the situation is really that they aren't
"deducting" any federal tax, rather than just that they
aren't "reporting" it. Twenty-one hours in a two week
period at minimum wage wouldn't be enough to cause federal
income taxes to be withheld.

If they deduct it and don't report it, well, that would be
illegal. In any case, of couse, if she's a normal employee,
Social Security and Medicare should be withheld.

Whit Matteson

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"Harlan Lunsford" <hlunsfordns[at]bellsouth.net> wrote:
- quote -

Thank you! Yes, they are withholding SS.

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- quote -

If she is an employee, she makes enough. Period. End of
story.

If she is an independent contractor, she has to make $600 a
year before they (the employer) has to report anything.

As for the other questions, RUN to a nearby tax preparer
(other than the tax-in-a-box) and run this by them.

Carol

What can one expect of a day that begins with getting out of bed.
Semper Gumby (Always Flexible)

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Andy wrote:

- quote -

21 hours or less a week, with a W-4 claiming married and 1
probably isn't enough to cause federal withholding. But
what about state withholding?

Also a question. Are they withholding social security? If
not, there's a problem.

Cheer$,
Harlan Lunsford, EA in LA

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Andy <noemail[at]noemail.com> wrote:

- quote -

Yes. She is a self employed contractor and with self
employed income over $433 she must file Schedule C. And if
her Net schedule C income, after deducting her allowable
costs and expenses is more than $433 she must file Schedule
SE to calculate and pay self employment tax.

The company who pays her must file a Form 1099-Misc if they
pay her more than $600/year.

- quote -

Possibly. If the computer is used partially for business
use and she has kept a acareful log of her business use and
personal use, she can deduct those expenses related to
busines use including depreciation.

Section 179 first-year expensing is probably not terribly
useful here given the maount of income earned.

I would not mess around with home office deduction given an
income of only $600 or so.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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My wife is a work at home mom and her employer does not
report her federal tax because they told her she does not
make enough.

She works min wage working about 21 hours or less every
two-weeks and has made $550.07 so far this year.

1) Is this something we need to report?
2) Does she get tax breaks for using her computer and a home
office for this employer?

Thanks!

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