From: Barbara Lamar (blamar@satx.rr.com)
Date: Sun Apr 06 2003 - 21:17:57 MDT
Charles Hixon wrote:
> I don't have any direct experience, but I seem to remember that anyone
> earning more than $750 a year had to pay income tax. And I know that in
> college when I was working for $5.00 per hour for short hours I still
> had income tax withheld, even though my projected yearly income would
> have been *far* below poverty. (I wasn't a full time job.) But there
> could be some special rule about people earning minimum wage that I
> never encountered.
A single person making $5.15 per hour, working 6 days a week, 52 weeks per
year would have gross wages of $12,854.40 for the year. (minimum wage
people, unless they're getting help from someone else such as parents, have
to work 6 days a week to even begin to make ends meet. Many, many of them
hold down at least 2 jobs. Usually one of the jobs is part time and one is
full time, but some people do 2 full time jobs.).
For 2002, this person would have had $797 in FICA taxes withheld, $186 for
Medicare, and $518 for federal income tax. On top of this, depending on
where the person lived, they might also have to pay state and local income
taxes. At wages of $12,854, this person is not eligible for the Earned
Income Credit.
Barbara Lamar
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