I'm single with no dependants and I don't own a home. This last year I grossed $7500 and I do have a side business but didn't make more than $2000 doing that. So what can I do? Any credits or write off advice that might help me get something back this season? Thanks.
2007-01-19 08:10:29 · 9 answers · asked by suzyq2318 1 in Business & Finance ➔ Taxes ➔ United States
Unless you have deductions to put on a Sch. A (itemized form) and exceed your standard deduction, you still have a portion of income after that that is taxable. Were you a full time student, did you contribute into an IRA, provide more than the support for a child/dependent (child support does not count), did you have to pay for tools for your trade? Unfortunately, single is the highest rate in paying taxes. Any expenses in the side business would also reduce that as well. Be aware that you will prob. have to pay self-employment taxes if you did not pay any during the year from this income. Good Luck. Make sure you have additional withheld this next year from your paycheck (w-4) to cover the potential for having to pay them as your income increases and/or your pay rate goes up. You should be claiming 0, with an additional $10-20 per period to be withheld from Federal as well as State.
2007-01-19 08:21:21 · answer #1 · answered by perleo 3 · 0⤊ 0⤋
Education credits, including the Hope credit, can only be used to reduce your tax, to zero if you have that much, but can't give you back more than you had withheld. So no, the most you could get back is what you paid in, or $333. There are a couple credits where you CAN get back more than you paid in - Additional Child Tax Credit and Earned Income Credit, if you're eligible for one or both of those. If you earned $9152 in 2007, and don't have any dependents, your tax would be $383 if you are single and are a dependent, or $41 if you are single and not a dependent. The Hope credit in either case would probably reduce your tax to zero so you'd get back everything withheld for federal income tax.
2016-05-23 22:22:52 · answer #2 · answered by ? 4 · 0⤊ 0⤋
I began getting my refund in January, 2006 on my first paycheck! I figured out what I should be paying in taxes for the year 2006, divided by the number of pay periods in the year, filed a new W-4 with my employer so that the withholding equaled my estimated taxes. This put another $45 dollars in each paycheck.
Rather than spend this I stepped up my contribution to my 401(k) plan. My employer matched this at a rate of 50 cents for each dollar I contributed. So rather than blow some tax refund each April on something I don't really need I ended up lowering my taxes (401(k) contributions are not taxed) and significantly increased my savings.
I think I'm finally on my way to getting financially smart!
2007-01-19 08:34:32 · answer #3 · answered by Flyboy 6 · 0⤊ 0⤋
Charitable is always good. People give away lots of stuff and don't realize it. Did you get your auto fees (many states)?
One of the only big deductions left for itemizing is mortgage interest. However, don't buy a house and get into debt for the deduction. If you don't have mortgage interest, you may be stuck just having the standard deduction for those that don't itemize.
Sorry to Perleo above - don't go to H&R Block. You may end up with a twit that doesn't know beans about tax law. They will hire just about anyone and I've heard of tons of problems & errors.
2007-01-19 08:22:26 · answer #4 · answered by Dizney 5 · 1⤊ 0⤋
You are in the same boat as many people.
Here are the top two reasons that get some that "big" refund:
1) They have a house that they really can't afford
2) They have kids that they can't afford.
Beyond education credits for going back to school or retirement credits for investing in your retirement, there isn't much that a single non-homeowner can do.
2007-01-19 08:15:52 · answer #5 · answered by Wayne Z 7 · 1⤊ 0⤋
Taxpayers 25 yrs. old but under 65, who made less than $12,120, without dependents, can still qualify for the EIC. The IRS website has a EITC Assistant that asks you questions to see if you qualify and how much you can get.
http://www.irs.gov/individuals/article/0,,id=130102,00.html
2007-01-19 09:36:46 · answer #6 · answered by Celeste 6 · 0⤊ 0⤋
You haven't put much in. You will only get back what went in. Hopefully you paid taxes on your side business income. If you didn't you wont get much back at all.
2007-01-19 08:20:56 · answer #7 · answered by Anonymous · 0⤊ 0⤋
How can you get much back when must have put almost nothing in? Enjoy your low-tax status rather than worry about a few hundred
2007-01-19 08:13:58 · answer #8 · answered by vegas_iwish 5 · 0⤊ 0⤋
I'm single too with no kids. the way i get more money back at tax time is to give more to charity during the year. thats what i do.
2007-01-19 08:19:53 · answer #9 · answered by laura s 3 · 1⤊ 0⤋