Does it make sense to file taxes if I only made $960 something dollars.?

Question

I work at my college library and make minimum wage and there are supposedly no taxes taken out. Im a little confused on how this works but should I file? I recieved a W-2 form. What do I do?

Ive only been working since August. What is the percentage I would get back? How do I calculate it?

Answer 1

Unless you're getting paid under the table, you should be getting some taxes taken out. Calculate how much you'll be getting back. If it's worth it to you, file it. If not, forget about it. The IRS only really cares if you owe them money.

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Answer 2

Whoa, everybody. An individual who is single that has an income under $8,450 does not have to file a tax return, unless they want to get back taxes that were paid in. The reason is that an exemption for 1 is $3,300 and the standard deduction is $5,150--these are deductions that are subtracted from income before you determine tax due from the tax tables. (See pg. 12 of the 1040 Instructions) Box 2 on your W-2 is where you will find the amount that was deducted for federal income taxes if any.

If you find that money was deducted, you can file to get that back, but filing a return in your instance is not required by law. In addition, BMW BFD mentioned the Hope Credit. If your parents are supporting you (paying more than 1/2 of your expenses for shelter, food, tuition, etc.), they are probably going to claim you as a dependent. Before you do anything that can jeapordize their return, check with them.

BTW the Feds don't care if you never file a return if you owe them money--you have 3 years to claim a refund and then it becomes theirs to keep. But if you owe them money, you have to keep up-to-date with them. It is what you owe the Feds that penalties and fines are assessed against, not money they owe you.

Answer 3

You should definitely file your taxes because it's the law, you won't go to jail but you don't want to be harrassed by the IRS either. If there were no taxes taken out, then that means you had no withholding. You probably won't have to pay but I don't know your situation. If you can claim yourself as an exemption and you take the standard deduction, you probably won't owe anything. However, if you have any other unearned income such as dividends, interest income, etc. that might bump your Adjusted Gross Income.

You can file for free so you don't have to worry about paying for that. Just go to the IRS website.

Answer 4

well, if the laws are the same as they were a couple of years ago, you still have to file if you made over $600, or was it $650 in the year. You might have to pay taxes, but it will probally be only something like $10-$25.

If that was your only job, and that is the only thing that you have to claim, you can do your taxes online in probally about 15 minutes.

Answer 5

Its the law, so you have to file, no matter how small the amount. If you get a W2, then the IRS already got a copy of the W2 and they know you need to file. Sine you have the W2, look at it. It tells you how much you made, and how much taxes were taken out. Also, if you are going to school, it is in your best interest to file because you get money back with the hope credit.

Answer 6

Are you surviving on $960 per year? Will someone be claiming you as a dependent on their tax return?

If you are a dependent, you have to file. The minimum income requirement for dependent tax filer this year is $850 of earned income (like wages, tips etc). If you have unearned income (interest, investment etc) greater than $300 you are also required to file.

If you file, chances are you will get some of your tax withholding back, but it will only be worth while if you doing it yourself without using tax professional. Your return wouldn't justify hiring someone. Go to www.irs.gov and get 1040EZ to do it by hand, or use their "freefile" service http://www.irs.gov/efile/article/0,,id=118986,00.html

If you are not a dependent of someone else, then you have two choices:
1. File and get your tax witholding back, plus you might be qualified for Earned Income Credit(EIC) if you meet certain conditions. For EIC requirements see http://www.irs.gov/newsroom/article/0,,id=153996,00.html
If qualify, and you are single and have no child, your EIC is $75. Still this wouldn't be worth it to hire professional (like H&R Block's fee will wipe out your entire return).

2. Your second choice is don't file. If your entire income is less than your standard deduction plus personal exemption, then you are not required to file. If your filing status is single, then the minimum income requirement is $8450 (standard deduction for single is $5150 plus $3300 for personal exemption).

If after figuring out 1040EZ and you are not getting all your tax withholding back, then check to see if you qualify for Education Credits http://www.irs.gov/publications/p970/index.html Education Credits might help you reduce your tax obligation to zero and get all your tax withholding back.

Best wishes.

Answer 7

If I were you, I'd file regardless. You may end up breaking even and not getting anything back but not owing anything either. But you may get some money back, granted not much but it's worth a shot. Fill out the form(s) and send all your stuff in.

Answer 8

Since no taxes were withheld on w-2 and you didnt make enough to have to file a return. I wouldnt rock the boat. you might end up paying in!!!

Answer 9

Sounds to me like you may be a full time student? You can get credits for tuition and books! You should print out the forms and fill in the blanks to see if you will get a refund!

Answer 10

Unfortunately you have to file if you made only $1.00 and got a w-2! Sorry...but good news, you should get most of your taxes back!