Help With Irs And Tax Related Problem Plz?
Well, ok my mom makes about 15.000 a year. she has to support 2 dependents use to be 4 but 2 of my brothers moved out. well anyways she doesnt have a SSN. They pay her cash for cleaning houses, yet government gave her an EIN and are making her pay taxes she has to pay $100 monthly and doesnt get anything back. I dont understand why and she doesnt either. Usually when u pay taxes u get a tax refund atleast but she doesnt.
in order to answer the question must know why she doesn’t have ssn…is she an illegal alien? more than likely the people paying her are reporting what they paid her on their tax return as they are required to do…does your mother file tax returns? has she ever? an ein is an employers identification number…they gave that to her in order to identify her since in effect she is self-employed…many issues here…she needs help.
No one can legally hire your mom as an employee since she doesn’t have an SSN. Thus no one is withholding anything for fica/mc or taxes. If she makes $15000 a year, she’ll owe $2119 in self-employment taxes…wich is about right for your comment that she pays $100 a month.
The reason she doesn’t get anything back is that she doesn’t pay anything in ahead of time. She isn’t eligible for EIC (due to lack of SSN) and the child tax credit doesn’t apply if the dependents are 17 or older.
The number she has SHOULD be an ITIN, not an EIN. And, yes, we can tell she cleans houses–she can’t legally work as a contractor for any firm that is a business.