Ok im 16 years old and i need some enlightenment on income tax. I worked over the summer and on my pay stubs it had social security and medicare deductions but no income tax deduction. It only says in the corner under "status fed/state" Don't withhold/exempt. So when tax time comes around do i need to send off 10% (the bracket for my gross earnings) of my earnings or what? and tax refunds? ahhhh, so confused please explain from square one.
2006-12-12 14:32:23 · 4 answers · asked by chrishenderson08 2 in Business & Finance ➔ Taxes ➔ United States
Income taxes are monies that we pay to the federal government which are based on our income at different rates.
First you will want to see if your parents or guardian are claiming you as a dependant. It will make a difference on their taxes as well as your own.
If you are being claimed as a dependent you will not have to do a tax return if your income was less than $5,150. If you made over $5,150 then you will have to do a tax return.
If your parents or guardian are not claiming you as a dependant than you will not have to do a tax return if your income is less than $8,450.
For 2007 you will want to fill out another W-4 for your employer you are not eligible for the exempt status if you earn over $850 or can be claimed as a dependant on somone elses taxes.
2006-12-13 06:55:05 · answer #1 · answered by T D 2 · 0⤊ 0⤋
The "exempt" just says that when you filled out your W-4 when you were first employed, you checked the "exempt" box saying that you were not subject to withholding because you would not owe any tax. You might have done this on your own, or because someone told you to, but that's what must have happened.
You say you're in the 10% bracket. Are you sure of that? You're not taxed on your gross earnings, but on your taxable income which would be less. I assume you're a dependent of your parents, but you can still make up to $5150 and not owe tax. If you weren't a dependent, you would not pay tax on the first $8450 of gross income. As a dependent, your taxable income would be what you made minus $5150, or would be zero if you made less than that. You would still have to file a return if you made over $600, but wouldn't owe anything. You can file a 1040EZ.
If you made over $5150, then you should not have checked exempt and should have had money withheld for taxes, but what's done is done, so if that's the case, yes, you'd send in 10% of your earnings over $5150 with your tax return - and next summer, don't check exempt.
You won't get any refund - you didn't pay in any taxes. You get a refund if you pay in more than you owe.
Good luck. I hope this answers your questions.
2006-12-12 23:12:51 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If they didn't withhold money, chances are you didn't make enough money to pay income tax. Go to www.irs.gov and search for "income tax brackets" to find out.
2006-12-12 22:35:29 · answer #3 · answered by chris_in_columbia 2 · 0⤊ 1⤋
You can find free self-calculating IRS forms at this site:
http://www.pdftax.com/
2014-02-13 16:13:43 · answer #4 · answered by TaxRef 3 · 0⤊ 0⤋