- Filing your tax return on time helps you avoid penalties if you owe money.
- If you are owed a refund, filing on time still helps the process go smoothly, and you might get your money sooner.
- On a W-4, a teen can claim exemption if they expect no federal income tax this year and had none last year.
- The benefit is more take-home pay now, because less tax is withheld.
- Self-employment tax is 15.3% of net earnings and you pay it yourself, while FICA is 7.65% paid by you and 7.65% paid by your employer.