Taxes for Teens?

Question

I am 17 and I do not like it when my job takes taxes away from my paycheck because it is usually between 20 and 40 dollars. I do not get tax returns, my parents do my taxes and I think that you don't get any money back if you don't make a certain amount of money in that year. Can you explain this whole ordeal because I need all of the money I work for to pay things off?

Answer 1

If you make less than $8200 and your parents don't claim you as a dependent, you do not have to file a return. Then you should claim "exempt" on your W-4 form, so they won't take any taxes out. Because you will have no tax liability.
If your parents still claim you as a dependent, you have to make over $5000 before you must file a return.

No matter how much you make, if you continue to have taxes taken out, and file a return, you will get back everything that you paid in. Because your Adj. Gross Income is so small it will not be taxable.

Hope this helps.

Answer 2

To quote from the IRS handbook, "Tough luck."

Now, you should know that you should be filing tax returns separate from your parents. Instead of having your parents do it, I'd suggest convincing your folks to go to an accountant or other professional. (You'd be surprised how much they can shave off them at the end.)

If you filed a separate tax return, you can get back some - if not all - of your federal and state taxes. Basically, everybody gets a certain amount as a standard deduction, whether they can be claimed as a dependant (as you most certainly are) or not. If you make less than that amount of money, you get ALL of your remitted federal and state income taxes back.

If you made money last year, and didn't file a return, try and find a professional and see if it's worth it to file a revised tax return. You may find out that dear ol' Uncle Sam has a few bucks for you.

Now, to reduce the amount of taxes you get cut from your paycheck, talk to whoever's in charge of hiring and paying and ask if you can change your W-9 form. You can add exemptions to the form and that will reduce the amount of taxes that get cut from each check.

Answer 3

You have more questions than are going to be answered here. If you are honestly curious how taxes work - and it doesn't look like you have any real idea, which is okay, not many people do - study it online or take a short course on it. It'll stand you in good stead as you get older and do your own taxes.

For instance, many things are taken out of your check. Social security (retirement $), funds in case you have to go on unemployment at any time, taxes, etc.

You most likely make little enough to get all your taxes back, except that your parents probably still claim you as a dependant. That means they get the money, not you, since it is assumed that they are supplying shelter, food, etc.

Answer 4

I wish I could explain it to you sweetie. But I think you can get some of it back no matter how little you make. What you may be thinking of is that you don't have to file unless you make over a certain amount. But this is a good lesson in the "real world" for you and will help you appreciate all your folks have worked so hard for, and maybe encourage you to get that higher education so you can make more money throughout your life.
I'm glad to hear that you are out there, working, instead of waiting for everything in life to be handed to you. Keep up the good work.

Answer 5

First, as others have answered, if you earn under $14,600 you do not owe taxes. When you file a tax return all the Federal & State taxes will be refunded to you.
Second, you can reduce the amount withheld by increasing the number of dependants on your W4 form If I were you I would claim 10 dependants.

Answer 6

If you work, you must pay taxes as well as Medicare and state taxes. At the end of the year, you will usually get back most of what you paid out, especially if you are a student in high school or college. However, if your parents claim you as their dependent, it may well affect whether or not and how much you get back. Check with them and with with a tax consultant.

Good luck!!

Answer 7

Usually teenagers pay next to nothing in taxes because they make next to nothing. A teenager working a part-time job is still eligible for the standard deduction of $5150, for tax year 2006. For a teenager making more than this amount, they will still be in the lowest possible tax bracket, entitling them to almost all taxes refunded. For a more specific estimate on an individuals tax obligations, www.irs.gov has a withholding calculator listed under its individuals tab.

Answer 8

What's your annual income?

This table - http://www.irs.gov/formspubs/article/0,,id=133517,00.html shows what you owe the government depending on the level of income. Notice that if your yearly income is below $7,300, the tax bracket is only 10%, and the employer is likely taking more out of paycheck.

In which case you definitely need to ask the parents to file the taxes for you as single, since you'll get some money back then.

Unless of course they claim you as dependant, so they get the money back on theirs.

Answer 9

Why don't you do your own tax return - you have to sign it anyway. That way you will also be able to better understand what is going on with your tax situation.
Why do you have things to pay off at 17? You aren't old enough to enter into contracts, etc. for things - therefore you shouldn't have any credit card debts, etc. b/c no one should be issuing you credit cards.

Answer 10

Any salary is taxed. When you file a return, if you make under a certain amount; you are probably entitled to the entire amount paid refunded.