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christineka

Painted Pallets Fund Troop To Go To Camp

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It's about 4k.

If his is a small troop, he could have definitely earned under that amount and afforded to underwrite their camp.

It's not entirely clear if socking away funds for your own future mission is sheltered.

I don't see the tax man raising an eyebrow over this.

 

I'm not even sure from the article if the troop was involved at all.  Individuals from the troop were and the troop was the original inspiration, but there's nothing in the article that indicates this was a troop effort at fundraising.  The last time I heard what the minimum requirement was it was $900.  :)  I must be getting old.  I guess I had to file every year because I always made more than the minimum and/or wanted my refund.

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Again, any tax attorneys here? If not we shouldn't dispense opinions on the tax implications of fund raising. Any fund raising may raise either personal or unit tax liability. Best to leave advice on this topic to professionals.

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Again, any tax attorneys here? If not we shouldn't dispense opinions on the tax implications of fund raising. Any fund raising may raise either personal or unit tax liability. Best to leave advice on this topic to professionals.

That's crap, it's a voluntary tax system. We all participate in it. Know thy brackets. Live well.

 

Or, work through this ... http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

 

I guess it really hinges on the kid being considered self-employed, and calculating his net earings correctly.

 

It's a darn shame when a youth who couldn't afford camp makes a nominal windfall -- most of which he gives away -- and folks think he needs to hire a professional to keep the tax man from knocking at at his door. Seriously, they have bigger axes to grind.

 

If he's netting more than 4K, he would do well to hire a financial planner who could help him shelter that to meet is goals for personal security and public charity.

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That's crap, it's a voluntary tax system. We all participate in it. Know thy brackets. Live well.

 

Or, work through this ... http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

 

I guess it really hinges on the kid being considered self-employed, and calculating his net earings correctly.

 

It's a darn shame when a youth who couldn't afford camp makes a nominal windfall -- most of which he gives away -- and folks think he needs to hire a professional to keep the tax man from knocking at at his door. Seriously, they have bigger axes to grind.

 

If he's netting more than 4K, he would do well to hire a financial planner who could help him shelter that to meet is goals for personal security and public charity.

 

Ah, "voluntary tax system"?

 

I'm pretty sure you are required to pay taxes on that income as defined by the US Tax Code.

 

This is why people should stop giving tax advice if they are not tax attorneys. Some well-meaning person is going to give the wrong advice that gets followed by some other well-meaning person; but that advice will run contrary to tax code and get them in trouble.

 

Either the child has to declare or the adult has to declare. It ain't just "free money" that goes untaxed.

Edited by Bad Wolf

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Ah, "voluntary tax system"?

 

I'm pretty sure you are required to pay taxes on that income as defined by the US Tax Code.

 

This is why people should stop giving tax advice if they are not tax attorneys. Some well-meaning person is going to give the wrong advice that gets followed by some other well-meaning person; but that advice will run contrary to tax code and get them in trouble.

 

Either the child has to declare or the adult has to declare. It ain't just "free money" that goes untaxed.

Of course you've gotta pay! That's why it's voluntary. The gvmnt can't take it from you before you earn it. And it's on you to give it to them. ;)

 

From the source you cite: "A minor who works and earns more than the standard personal exemption has to file a tax return, according to IRS Publication 929. The amount of the exemption isn't set in stone but increases over time to account for inflation."

 

Which means that someone who nets less than $4K does not have to file. (This year. If any of you in the future read this, you can contact the IRS or local library - if they still exist - to determine the standard personal exemption in your wrinkle of space-time. :ph34r: )

 

The catch: that applies to wages, not self-employment if the net exceeds $400, and this kid (along with other crafstmen, consultants, tutors, etc ...) might fall into the category of sole proprietorship.

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@@qwazse you missed the quote that stated that even if your child was below the minimum threshold he may still have to file.

 

Whether your kid claims the money as income or a parent does, SOMEONE has to claim the money AND file it with their annual taxes. Your advice seems to imply that they money not be accounted for by someone.

 

As I said, best a topic we leave to the professionals. Since no one here has fessed up to being a tax attorney (and willing to give free advice) we better leave it alone, lest someone get the wrong idea.

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Heh, heh!

 

 

Subjecting the budding businessman in question to the tender mercies of the Internal Revenue Service ought to be a refreshing wake up call!

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