I have a job but my first $5000 is exempt from tax. By the time I end my job, I will still not yet have reached $5000. I am employed by my mom, and she has an employer ID and all other documents to be an official employer, but since she I planned for me to work for a short time (before I reach a $5000), we’ve never had to fill in an income tax return. My common app asks me if I’ve ever had a job before, I have filled out my employment under her along with the dates and my income accompanying it. Will this be a problem of contradiction?
Your mom needs to do tax documents for you…but that’s another story. Otherwise, that under $5000 you earned would be considered self employed income…and for that amount, she should issue a 1099.
Regardless of whether you filed or needed to file taxes, your income must be listed on your financial aid form.
If you aren’t required to file a return, you would complete a non-filers statement.
@BelknapPoint or @Madison85 could you explain?
The income you use for 2018-2019 financial aid forms was from 2016. Did you work that year?
Your mom needed to issue a W-2 for your $5,000 in wages (not a 1099, not self-employed). If you are under 18 and employed by your parent then no Medicare and social security tax is withheld.
You will report your income earned in 2016. The college might ask for your W2. If you didn’t file a tax return, you will might need a “nonfiling verification letter” from the IRS.