Filing my First Taxes?

Question

Trying to do my own taxes with Turbo Tax but it only allows $674.22 cash back. How do I maximize my return?

Wages: $7052.59
Federal Income Tax Withheld: $674.22
Social Security Tax Withheld: $437.36
Medicare Tax Withheld: $102.26
Category 14 Other: CASDI $56.42

Also, State Income Tax: $109.87

I think it adds up to a 20% tax. I'm a full time student at a University and I have a college loan but I never paid any of the interest. I dont really have much in my life right now that I can deduct anything.

Am I just stuck with the $674.22 tax return? I was hoping to get mots or all of my withheld money back.


Thanks!

Answer 1

You should be able to deduct some of the tuition you paid in 2006. Look for a statement in the mail from your school. It will say Hope Credit.

More info about that here:
http://www.nasfaa.org/AnnualPubs/TaxBenefitsGuide.html

The only other suggestion I have for you is that if you can afford it, make sure you pay the interest portion of your student loans, that way next year, you will be able to claim that when you file your 2007 return.

Buy a house ASAP after graduation, that way when you start making the big bucks, you will have a tax shelter.

Good luck!

Answer 2

Yea, the $674 federal income tax withheld will be your only refund amount. You can't get back your Social Security and Medicare tax until you retire or receive Social Security Disability. Also, the CASDI in Box 14 is (assuming) State Disability witheld, which you can't get back either. Sorry for the bad news....

If you did pay your own tuition and you are not being claimed as a dependent on your parents return than you can use it as a Tution Credit, but it wont increase your refund because you owe no tax....sorry again

But in some States (not sure about California) they allow a credit for qualified tutition paid, you can get a certain percentage of the tutition paid in the tax year as a refundable credit. You really should contact a tax professional in your resident state to maximize your tax situation.

Answer 3

Honey, you did get all of your withholdings from Federal Income Tax returned to you. As you stated, you had $674.22 withheld for federal income tax and that is what you are getting back. I think if you do your state return you will find you are getting back the withholding there as well. Round that off and you will get a refund check for $110.00.
WELCOME to the real world!! All of my kids were confused when this happened to them. The other taxes that were withheld were Social Security and Medicare. I'm not sure what your other withholding is, maybe hospitalization?? But non of that will be returned to you. Congratulations for doing your taxes yourself.
WAIT A MINUTE!!!!! I just thought of a way to get a little more. Check the box that gives you the credit for the Federal Excise tax on the back of the 1040. That is $30 more. If you are filing a 1040A, get a 1040 and just transfer the figures to the appropriate lines and add the check for the federal excise tax.

Answer 4

The one way to maximize is to have some dependents, but they are expensive. If you are getting $674.22 back you are doing ok! Filing using Turbo-Tax or like software is good for single filers. If you have dependents and are married you can get earned income credit and child care credits. Based on your question I would think that you are a single student. You are probably not going to get much of a break as far as deductions.
There is one thing that you can look at: A SPECIAL ONE TIME TAX CREDIT ON YOUR 2006 TAX RETURN

When it comes time to prepare and file your 2006 tax return, make sure you don't overlook the federal exise tax refund credit. You claim the credit on line 71 of your form 1040. A similar line will be available if you file the short form 1040A. If you have family or friends who no longer files a tax return AND they have their own land phone in their home and have been paying a phone bill for years, make sure they know about this form
1040EZ-T.

What is this all about? Well the federal excise tax has been charged to you on your phone bill for years. It is an old tax that was assessed on your toll calls based on how far the call was being made and how much time you talked on that call. When phone companies began to offer flat fee phone service, challenges to the excise tax ended up in federal courts in several districts of the country.

The challenges pointed out that flat fee/rate phone service had nothing to do with the distance and the length of the phone call. Therefore, the excise tax should/could not be assessed. The IRS has now conceded this argument. Phone companies have been given notice to stop assessing the federal excise tax as of Aug 30, 2006. You will most likely see the tax on your September cutoff statement, but it should NOT be on your October bill.

But the challengers of the old law also demanded restitution. So the IRS has announced that a one time credit will be available when you and I file our 2006 tax return as I explained above. However, the IRS also established limits on how BIG a credit you can get. Here's how it works.

If you file your return as a single person with just you as a dependent, you get to claim a $30 credit on line 71 of your 1040.

If you file with a child or a parent as your dependent, you claim $40.

If you file your return as a married couple with no children ,you claim $40.

If you file as married with children, you claim $50 if one child, $60 if two children.

In all cases, the most you get to claim is $60 - UNLESS you have all your phone bills starting AFTER Feb 28, 2003 through July 31, 2006 (do not use any bills starting Aug 1, 2006.), then you can add up the ACTUAL TAX AS IT APPEARS ON YOUR BILLS AND CLAIM THAT FOR A CREDIT.

Now if you have your actual phone bills and come up with an ACTUAL TAX AMOUNT, you cannot use line 71 on your tax return. You have to complete a special form number 8913 and attach it to your tax return.

Individuals using the special from 1040EZ-T will have to attach this form 8913 also.

One final point - this credit is a refundable credit. That means you get this money, no matter how your tax return works out. If you would end up owing the IRS a balance, the refund will reduce that balance you owe.

If you end up getting a refund, the credit will be added and you get a bigger refund by that $30 to $60, depending on how many dependents are on your return.

Answer 5

Here is the exact tax return using 1040ex, it also depends on 2 things,

1.VERY IMPORTANT ON HOW YOU ARE GOING TO FILE,

Are your Parents or Parent claiming you on there return, and how old are you.

If your parents are claiming your tax return would look like this!

ADJUSTED GROSS INCOME 7052
STANDARD DEDUCTION -5150
TOTAL 1902
TOTAL INCOME TAX OWED 191
EDUCATION CREDIT - 191
TOTAL TAX OWED 0
AMONT PAID 675
TELEPHONE CREDIT 30
TOTAL REFUND 705


iF YOUR CLAIMING YOURSELF

ADJ 7052
STAND DED 5150
TOTAL $1902
dEPENDENCY -$3300
tAX OWED 000

TELEPHONE CREDIT 30
TAXES PAID 675
TOTAL REFUND
FROM FEDERAL 705.00
you will not qualify to take the education credit due to the fact that there is nothing to credit against.
you cannot take the education credit until after February 2, 2007 to file it then you can take the deduction it was phased out after December 31 2005, but reinstated with the new tax law signed into effect and effective Feb 1, 2007 for 2006 returns
SHOULD GET ALL OF STATE DEPENDING ON WHICH STATE HE LIVES. $110

But your parents would lose you as a dependent and since you are over 18 and a student they still would be entitled claim you as a dependent and possibly get the Earned Income Credit for you. but that would also depend on their gross income.

tHE REFUND WOULD BE NO MORE THAT 705. THAT IS ALL YOU CAN GET BACK PERIOD,

Answer 6

In most cases, you aren't going to get back more than you paid in. Remember, you are doing federal income taxes. Social Security is, theoretically, paid out once you retire. Medicare does not refund at all. That said, you should be able to file State income taxes and you might get a refund from your state.

Unless you have a child and get credit for child care, there are very few rare cases of where you get back more than you paid in. You also need to be sure your parents are not claiming you as a dependent or you won't be able to claim yourself. In your case, you'll probably be better off taking a standard deduction. Itemizing only helps when you have high medical bills or a mortgage. I hope that helps.

Answer 7

You did get all your withheld money back. Federal income tax withholding is the only thing that applies to federal income tax.

You don't get social security and medicare back.

State income tax depends on the state - you'll file a state return to see if you get anything back there.

By the way, if you're a dependent, like of your parents, you need to note that on your return. If you are, you'll still get most but not all of your withholding back.

Answer 8

The only money due to you because you are a student and you are exempt, is the federal money you paid in. Also you will get your State taxes back too. But the SSTax and the Medicare and CASDI are all that you pay in and don't get that back.

Did you file Exempt?

Answer 9

Use Taxcut.com. It's easy, they ask you step by step questions and you will get the maximum return guaranted (by them). That's who I am using and I am getting a huge return. Also, you don't have to pay until you are ready to file so you can preview what you will get back without having to pay anything.

Answer 10

Also, if you had a telephone- or, cell phone.. you can do this.
check the url below