I started a new job, I filled out my tax information, I claimed myself and son. did i do the right thing?

Question

My son and I are the only ones living in the household. No one else claims us, will I get a return? Or have to pay Taxes, Thank you for your help.

Answer 1

You don't get a return unless you pay taxes in the first place. It depends on your income and your tax bracket whether or not you'll pay taxes and how much. Remember, income tax refunds are a bad thing--it means you overpaid, and you didn't earn interest on that money while it was out of your hands.

Answer 2

Starting a job this late in the tax year will result in a minimal difference in your tax deductions for payroll checks dated from now until 12/31/06. Determining the number of dependents for the 2007 tax year is a more important consideration. As far as you having to pay taxes, that question can not be answered due to insufficient information. However, if this is the only job you have held for the 2006 tax year and you were just hired in September 2006 you probably have nothing to worry about.

Answer 3

If you take maximum deductions you will probably JUST make it at tax time. Your return will be minimal at best or you may end up owing money. The best bet is to use less deductions, maybe just one of you rather than both of you, unless you really need the extra bucks. I had to pay taxes once when I took out max, swore I'd never owe again. Now I use zero deductions and get a return every year. I have less spendable income during the year, but I don't get that $600 surprise in April either.

Answer 4

What do you mean by “ filling out tax information”? You mean you fill out a W-4 with your employer?
Here is how the tax works. There are in general 9 elements in a federal income tax return.

1.Filing Status
2.AGI
3.Minus Deduction
4.Minus Exemption
5.Equal to Taxable Income
6.TAX is base on taxable income
7.Minus Credit
8.Minus Payment
9.Equal Tax due/ Refund

1) Filing status how U.S. government declare you under a particular category, it may be “Single”, “Married Joint”, Married Separate”, or “Head of Household” and in your case you are “head of household”

2) AGI (Adjusted Gross Income) or another word INCOME. Any and all income be it from selling stock to wages.

3) Deduction, there is 2 kind and they are Standard and Itemized.
If you use Standard deduction for the year 2005 and if you are US legal resident and filing status is Head of House hold then it is $7,300.00. which mean if you earn $7,300.00 or less it’s not taxable.

4) Exemption is something every one has however if you are dependent under the age 18 then they can take your exemption for them self. In the year 2005 the exemption is $3,200.00 that means if you earn less then $3,200.00 then there will be no tax. In your case you have 2 exemption, one for you and one for your son. Two exemption means $6,400.00 meaning if your earn $6,400.00 or less there is no tax.

5) Taxable income is the result when you take AGI minus Deduction minus Exemption. If your Deduction and Exemption are greater than your AGI then you have no Taxable income. In your case if your earn in the year 2005 $13,700.00 or less there is no tax.

6) TAX is base on taxable income; you may be using a tax table or a schedule to find that amount,

7) Credit is there to reduce your taxes, Credit is better than Deduction and Exemption because it reduce tax

8) Payment is any money pay into the federal income tax accounts be it withholding or estimated tax payment. Here is two reason why you file your income tax return.

First is the fact that the W-4 you filed out tells your employer (boss) to do you a favor and that is to take out federal and state taxes for you. So at the end of the year you would have pay federal and state income tax to the government already. You do a federal and state income tax return to get that money back if you over pay the government.
Second is when the government created the income tax they are looking out for low-income people. There is a Credit designed so that when you fill this credit out and if it works out you will get free money back from the federal government. This Credit is calling EARN INCOME CREDIT (EIC). Please also note that some credit is treated like payment like (EIC) because they are payment from the government. This is where you need to know why you should file a tax return.

9) Tax due/Refund is result from the calculation. If the tax is greater then credit and payment then it is a tax due. If the tax is less then credit and payment then it is a Refund or a –0- balance.

Answer 5

I believe that you can claim your son as a dependent, as well as yourself. Still, you might want to check with your payroll department at your job.

Answer 6

It's best to be honest.