Can anyone explain in detailed steps about the W-4 form, tax deductions, tax return, Aprill 15 process.?

Question

I am currently a highschool student as a senior and at the age of 17. I a still a minor and I barely got my first job 5 months ago. Please explain the process and set examples. Thank you! I am NEW about THESE TAXES STUFF, so please help!

Answer 1

You should receive a form from your employer in January that tells you what you made and how much was deducted for taxes.

I suspect you will fill out the 1040EZ, as without a house it is very doubtful that you have enough deductions to make it worthwhile, the standard deductions will be more.

The forms are very self explanatory. Read the instructions and fill them out.

You can get most of the instruction books online at IRS.gov.

You are smart to start this now, as a knowledge of the tax laws and deductions can save you lots of money. For every dollar you can take off your income due to deductions or tax free uses, you make about .30

Answer 2

I agree with most of what John says, but H&R Block will cost you substantial money for something you can probably do yourself.

You'll get a form in January from your employer called a W-2. It will show how much you made in 2006 and how much tax was withheld.

Download form 1040EZ and instructions from irs.gov - click on "more forms and publications" in the left-hand column to do this. Fill out the form using the numbers from the W-2, and just do what each line tells you to do. At the end, you'll have a number that's either what you still owe, or more likely what your refund is. Mail the form to the IRS before April 15. It's possible to file online, but can be complicated and often has a cost. If you're getting a refund, send it as soon as possible so you'll get your money back sooner.

If you have any questions, feel free to email me and I'll walk you through it. It's pretty easy. No sense paying H&R $50 or more to do what you can do in less than an hour.

Answer 3

You can probably use the 1040-EZ form. It's not hard to fill out, and you can get it and the instructions from the IRS website. Download and print the form, and download AND SAVE the instruction. Don't print them unless you need to - they're much longer than the form - about 36 pages long.

At a very high level - your W-2 statement shows how much you earned, and how much was withheld for federal, state, and local taxes. You copy this info onto the tax return, add some other info that you either look up or get on other forms, and send it in.

If you really need to, there is tax software that you can buy at most office supply chain stores that will guide you through the process. It asks you questions to gather the information, and at the end it will print the forms for you to mail in. I wouldn't recommend this, though, unless you need to use something more complicated than the EZ form. There's no need to spend $20-50 for something this simple.


You can also use your latest check stub to make a practice run through your taxes now. Estimate how much money you think you'll make for December, as well as how much will be withheld in taxes. Keep in mind that taxes are usually a percent of income, so if you divide the federal tax paid by the total year to date income on the check stub, you can use that percentage figure out about how much of your estimated yearly income will go to taxes. Do the same for the feds, social security, etc. If you do it now, you can find out if you'll owe money or get a refund.

Answer 4

W-4 is a form that you have to fill out for your employer... this way your employer will withhold the correct federal (and some states) income tax from your pay.

When you file your Tax Return on or before April 15, you will have your gross wages listed on the W-2 that your employer must give you by Jan. 31.

You may or may not have Tax Deductions that will reduce your gross wages, therefore reducing the taxes you owe.

Example:
When you got the job 5 months ago, you should have filled out a W-4 for your employer (it is there responsibility to have you do that). For someone who is 17, I would recommend claiming Single and 0 (zero). This will make your employer take out plenty of taxes from your paycheck to cover what you are going to owe in taxes to the government.

On Jan. 31 or before you will receive a W-2 with your wages, and the taxes you paid from your employer (again, their responsibility to provide this to you).

Go to H&R Block or a place like that before April 15 with your W-2 and any other income documents (other jobs, interest income, stock sales, etc). You don't have to go to H&R Block; you can use the forms on the IRS.gov website to file your taxes.

When the H&R Block people talk to you they will ask you questions about deductions then (the internet will ask you the same questions) which may reduce you actual wages.

Any taxes that your employer withheld from your check over and above what you actually owe will be returned to you in the form of a refund.

Answer 5

Call the IRS, they're actually really nice and very happy to help you with questions. This is a good time of year to call because it's not tax season.

Internal Revenue Service
1-800-829-1040
www.irs.gov