I am 18 and work full-time. I make approx. $20,000 a year before taxes are taken out. I claimed 1 on my W4. I've been working at my place since July. Under what circumstances would I have to pay more taxes (out of my pocket) come tax return time?
2006-12-05 07:19:27 · 4 answers · asked by teneff88 1 in Business & Finance ➔ Taxes ➔ United States
Assuming that you cannot be claimed as a dependent this year, then you should be in line for a big refund at the time you file your return. The withholding tax tables and formulas do not take into account the full standard deduction for anyone who is single and claims only 1 exemption. Since you worked only 1/2 of the year, your refund this year will be large. Let's say that you earned $9231 (24 weeks at 384.62/wk gross). Your federal income tax would be about $78 but your withholding would be about $1,113, so you would see a refund of nearly $1035. This happens because the withholding comes out of each check as if you are making $20,000 for the whole year.
The next year when you file, for 2007, your refund will be more like $375.
2006-12-05 07:42:59 · answer #1 · answered by Andreas 3 · 0⤊ 0⤋
With a little luck, you'll come out about even. Since you only worked half the year, the amount taken out might be more than you actually owe since they take out like you were making that same pay all year, so you might even get a refund this year.
2006-12-05 15:34:49 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Andreas is mostly right. Ignore Kramer...'s answer -- she's way off.
As long as your employer is withholding ~ $140/mo for Federal Taxes you should be due a refund in January. This is true even if someone claims you as their dependent.
2006-12-05 15:56:38 · answer #3 · answered by CPAKeith 3 · 0⤊ 0⤋
If your withholding doesn't meet your tax bill, you will have to pay more. You will pay 15%. So if you haven't withheld $1500 this year you will probably have to pay out of pocket.
2006-12-05 15:29:37 · answer #4 · answered by kramerdnewf 6 · 0⤊ 0⤋