I don't really understand what determines the amount you owe or the amount you will be refuned on your taxes...As long as you aren't reporting inacurrate tax information (claiming too many dependents, etc) for your employment, is it assured that you won't owe anything?
I just started working professionally in July of last year so I did not make a ton of money (about $10,500), plus I have student loan interest of upwards of around $765. So, my employment and my student loans are the only places I will be reporting tax info on. I claimed myself as a dependant.
Could you assume at the very least that I wouldn't owe anything? Just curious. Thanks.
2007-01-22 03:13:44 · 8 answers · asked by LG 1 in Business & Finance ➔ Taxes ➔ United States
There is no assurance that you will not owe taxes in addition to your withholding.
With the information you have provided for 2006, you will owe just over $200 in taxes. So if your W-2 shows withholding greater than that amount, you will get a refund.
Be sure to subtract the student loan interest paid on Line 33 of the 1040.
2007-01-22 03:20:03 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
You shouldn't owe anything. If you only made 10,500 dollars last year you should get some back. You probally paid what about 1,000 in taxes? I think you might not even have to pay taxes making so little. You definitely will not owe with a low income.
It has to do with the amount you make determines the tax % you pay on.
2007-01-22 03:20:05 · answer #2 · answered by *Aimzie* 3 · 1⤊ 0⤋
From my past experience, You would do well to file you taxes right away and get your check. You could sent the check to your student loan bill and next year you will be in a good place.
The federal government, usually collect taxes in excess as to what would be owed. Don't fall for those "quick money traps". Wait for the U.S. Mail it is slow but $100.00 in your pocket is worth 5 week wait.
Pay off the student loan as soon as you can, save money from your pay to buy a house. Buy the smallest, cheapest, place you can find. The money you spend in rent (if you move from your parents) is a waste.
2007-01-22 03:27:38 · answer #3 · answered by whatevit 5 · 0⤊ 0⤋
You should be OK this year, as long as you didn't claim too many allowances on your W-4, since they'll have been withholding since July as if you made that much all year which you didn't.
But no, there's no assurance that you won't owe just because you claimed only the allowances you were entitled to, but you should be fairly close.
2007-01-22 06:07:27 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
I think the government sends you a slip or something that says you owe money after you do your taxes and sends them off. Plus you should get a check for money if you get money back. It's what happened to me!!
2007-01-22 03:18:28 · answer #5 · answered by RGS 1 · 0⤊ 1⤋
My assumption is you would NOT owe, based on the info you gave. Assuming you had withholdings taken from your salary, you'd probably get all of it back.
2007-01-22 03:21:07 · answer #6 · answered by bradxschuman 6 · 0⤊ 0⤋
The only way to know for sure is to do the math. To know if you will have to pay, we need to know if you are living on your own, or with Mom and Dad. On your own: you will not have to pay. with Mom and Dad: maybe.
Fill out the 1040EZ and you will know for sure. You can get the form online I think. Very simple to do.
2007-01-22 03:21:10 · answer #7 · answered by Scotty 2 · 0⤊ 0⤋
On the IRS site, I think it's www.irs.gov they have a calculator that you can estimate your taxes.
2007-01-22 03:16:59 · answer #8 · answered by Anonymous · 0⤊ 0⤋