How much do i have to make to pay taxes?

Discussion in 'Starting a Lawn Care Business' started by Jrebitz, Oct 6, 2019.

  1. Jrebitz

    Jrebitz LawnSite Member
    Messages: 1

    How much do i have to make a week in lawn care in order to pay taxes on the money i make each week im 18 and self employed btw.
     
  2. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 7,249

    One penny. Once you make that you must report and file. Welcome to the world of adulthood.
     
  3. Mattmowsgrass

    Mattmowsgrass LawnSite Senior Member
    Messages: 312

    You pay taxes based on the money you earn, not the amound of work you do. The rule of thumb is to save 30 to 33% of your profit for taxes.
    So, if you are saving 33%. If you make $1 you' should save $.33, $10 you should save $3.33, $100, save $33.33. This is not an exact calculation for what you will owe, we are all in a different situation.
    I actually save 33% percent of all income. But taxes are based on your profit. so ill have more saved then needed. I also save 33%, thats 1/3 of my income. I would be fine if I only saved 30%. I think most would save 30%
     
  4. Mattmowsgrass

    Mattmowsgrass LawnSite Senior Member
    Messages: 312

    Also, Id highly suggest using quick books to keep track of your finances. And be sure to save all. Business reciepts, and record all miles you put on your vehicle. Starting miles, ending miles. Location. For every stop.... For the tax man.
     
  5. Doc8406

    Doc8406 LawnSite Fanatic
    Messages: 26,516

    Just go to the IRS taxable income tables, when you find under single no deductions.. the lowest amount that will have no tax to be paid , is your number you are seeking..
     
  6. AlohaMowing

    AlohaMowing LawnSite Senior Member
    Messages: 340

    The proper question is really not what earnings level requires you to pay taxes, but rather at what level of earnings must you file a tax return. The correct answer to that is any amount greater than $0. If your income is modest, the calculation of tax owed will be minimal or $0. By filing the tax return you are demonstrating that you are complying with your legal obligations.

    If your income is substantial, you may be required to file and pay estimated taxes on a quarterly basis, but if you do not do that there would be no penalty nor interest charged the first year you had income. But that issue quickly becomes more complicated than is appropriate for an online discussion in a lawn care forum.

    You may find yourself tempted to take cash payments which you do not record nor report as income. At your young age that can be a mistake. Establishing a record of income can be important if you find yourself wanting to borrow money to expand your business. Develop the habit to operate your business in a professional manner.

    And while paying self employment taxes, i.e. paying into Social Security and Medicare, can be especially painful, establishing a record of those payments can become vital if you find yourself injured and needing to claim Social Security Disability payments to have a minimal income. It can be hard to think of that at your age, but it happens.

    My record of earnings from Social Security shows my first earnings when I was 16 years old, and the total income for the year was $165.
     
  7. Andrew H

    Andrew H LawnSite Silver Member
    Messages: 2,984

    It’s also advisable to get a CPA for business taxes.
    At your age, probably should have someone doing both until you know what you’re doing
     
    Burnie likes this.

Share This Page