I just started a job at taco bell, im only 17, so i do not have to pay taxes at the end of the year..... on my w-4 form i filed to be exempt (wich i heard means that they dont take federal taxes out of your pay check) but exactly how much is that? how much exactly would they take out if i was not exempt? On my w-2 for i claimed 1... myself.... any help?
2006-07-16 06:26:33 · 6 answers · asked by nicole b 1 in Business & Finance ➔ Careers & Employment
The previous three answers look good. Also be aware that if you claim yourself then your parents / guardians cannot claim you as a dependent. It would be best to pay in, file, and learn from the experience. Don't forget that all wage are subject to social security and medicare withholdings. Welcome to life!!
2006-07-16 06:39:07 · answer #1 · answered by parrhuthead 1 · 1⤊ 0⤋
You probably shouldn't have put exempt. YOu should have put a 0 or 1. Like previous people have said, just because you are 17 does not mean you do not have to pay tax. You will just end up getting sucked for them at the end of the year whereas if you claim a 0 or 1 now, you pay about 13-15% per paycheck and then you will get a refund at the end of the year.
I would talk to someone in HR at your work, or an adult who knows something about taxes so they can help you and you don't end up getting screwed come tax time!
2006-07-16 16:39:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Since you claimed exempt, they will not take taxes out, but you will also not get a tax return. If you had claimed 1 (yourself), then they would be taking about 15% out of your check every time. A Taco Bell job doesn't pay enough to make you owe taxes on it, so you would be getting that 15% back each year.
Something to think about, the government gets interest on that 15% for a whole year. If you put that 15% into a savings account, you would be getting the interest on it instead. It's not so much that will miss the money, but it's enough to start adding up. I wish I had done that at your age.
2006-07-16 13:33:22 · answer #3 · answered by Silverglade00 3 · 0⤊ 0⤋
First, being 17 doesn't exempt you from paying income taxes. The likelihood is, though, that you will not earn more than the personal exemption, so you will effectively get a refund of any taxes withheld.
Taco Bell has a 'human resources' department. Give them a call. You can't be the first 17 year old on the payroll.
2006-07-16 13:33:22 · answer #4 · answered by Joe Rockhead 5 · 0⤊ 0⤋
Claim 'zero' so they take out more and you get a refund. Otherwise you may get a bill for several hundred dollars at tax time instead of a refund.
2006-07-16 13:34:26 · answer #5 · answered by FreddyBoy1 6 · 0⤊ 0⤋
your tax bracket depends on your wages. The more you earn the more in tax you pay.
2006-07-16 13:31:43 · answer #6 · answered by Greg 3 · 0⤊ 0⤋