<p>The following is a little tedious but was good for me to learn.</p>
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<p>Let’s say a student worked roughly ten weeks for $30,000. Deducting a $5000 IRA contribution and $5700 for the standard deduction, his federal income taxes work out to about $1640.</p>
<p>The Lifetime Learning Credit is $2000, so your **federal income taxes will be zero<a href=“not%20negative,%20since%20LLC%20is%20non-refundable”>/b</a>. I presume this is what FH was talking about.</p>
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<p>You still have state taxes and payroll taxes. I’m not totally sure which deductions apply to those, and I’m also not sure if you can take the leftover $360 from the Lifetime Learning Credit and apply it to payroll. It looks to me, though, that NYS would be about $932 (applying NYS brackets of 4-5.9% to $19,300) and that payroll taxes would be $811 (4.2% * $19,300) minus the $360 from the LLC.</p>
<p>So total taxes on $30,000 would be $1383.</p>
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<p>EDIT: NYC itself has an income tax. In this case, it appears to be roughly $560. So the total would work out to $1943.</p>