I owe money for taxes and i am only 17!!!!!!!!!!!! Please Help ME?

Question

I am 18 now as of this january, but all of last year i was only 17 i had made a total of $21,000 in that year and i owe $675.0!! What the heck?

I worked three jobs that totalled my wages to $21,298

my federal income tax withheld total for all three is $1362.02

Total Wages for job ONE $15424
Federal tax w/held $304.07
Social Security wages for job one $15424
SS Tax Withheld $956.29
Medicare Wages $15424
Medicare w/held $223.65
~
Total Wages for job two $5399.71
Federal tax w/held $304.07
Social Security wages $5399.71
SS Tax Withheld $334.78
Medicare Wages $5399.71
Medicare Taxes withheld $78.30
~
Total wages for job three $474.59
Federal tax w/held $15.87
Social Security wages $474.59
SS Tax Withheld $29.42
Medicare Wages $474.59
Medicare Taxes withheld $6.88

What the heck is going on?
(i would ask my mom but she hasnt filed for about two years so not the best person to turn to)

Please help me out. I live on my own and am broke now cuz my bills.

I am sorry on my first job instead of $304.00 i had $1042.08


PLEASE NOTE THAT ERROR

Answer 1

you have too many deductions being taken out of each check, so instead of a few extra bucks being taken out each week for taxes, you are getting a few extra bucks instead. at the end of tax season when the numbers are added up, they want those few bucks back...but now they have added up to $675.

when filling out paperwork for taxes when getting a job, and you can go back and change these at any time, if its just you, no kids, ALWAYS choose zero. The higher the number of deductions, the less they take out. If you don't have those deductions when tax time comes, you now owe them that money back.

All you can do is pay it up, you owe it. You can fill out forms and get on a payment plan with the IRS to pay it back but the starting fee, monthly fee, late fee, interest rate will rack this $675 up to at least $1000 if not more.

Welcome to the big game....the game of being an adult. Rule 1...NEVER, I repeat...NEVER sign anything till you 100% understand it or you can get screwed bad. This includes loan forms, tax papers, employment forms, anything. There is always someone or a professional that can answer any question you have on any document or item, just be warned those that give you the papers might not always give you the correct answer, as they are wanting you to sign THEIR paperwork.

Remember nothing is free, period, never, ever, ever. Even if you think you got it free, and you took it home free, somehow you paid for it. Either with future money, or your personal info, mailing address for marketing, something. Be leary of who, where and why you give out any of your info, for any reason. And if anyone calls you, NEVER give out info over the phone...only do this if you made the call to them.

Follow these 2 rules and you'll get along ok as an adult....welcome again.....the days of "fun" are done.....see why us adults say "stay as young as you can as long as you can" ? lol

Answer 2

Hi Mandi

I assume from your figures that someone was able to claim you last year as a dependent, whether they did claim you or not. If you were on your own last year, you would owe a little less tax than that but would still owe.

When you work several jobs, each one takes taxes out like they are the only job you work. Since the way taxes work is that you add everything together, you end up owing. You can ask your employer to take out a little extra from each pay so you don't end up in this same spot next year.

If you don't have the money to pay it all at once, file anyway by April 17 - otherwise you'll pay penalties and owe even more than you would otherwise. The IRS will set up a payment plan for you to pay off the rest. You'll pay interest, but it'll still be less than if you just don't file or file late.

Good luck. You're making good money for just being 18, but if you're working 3 jobs sounds like you're working pretty hard for it.

Answer 3

please get Turbo tax and prepare your return. As for owing taxes and your age, so. I've seen kids that are under 14 owe big amounts based on unearned income. Taxes don't look at your age.

When withholding is calculated by an employer it only looks at that bunch of income. It doesn't take into account other income you have. So if your tax rate in company A is 5%, they withhold at that rate. If your overall tax rate is 15%, based on several jobs, you will then be under-withheld. What did you claim on your W-4? To have the most withheld put Single - 0.

Answer 4

I think you had a typo on the first job. Nevertheless, the reason you owe is that you worked three jobs. The withholding tables assume that that job you are filing the W-4 for is the only job you have. When you have three jobs, the withholdings for each individual job doesn't take into account the tax implication of the other two jobs. When you file your tax returns, your tax return does account for the income from all three jobs to determine your tax liability for the year. This results in you being underwithheld for the year, and that is why you owe tax.

Answer 5

Welcome to the real world. Kinda hate to say that, am also rather ashamed that I was not a better steward. I protested the Vietnam War, I did not cast a vote for any that said lower taxes and then raised them. I did my best. But we sure left you and ourselves in a mess of debt and diseases not to mention the global pollution.
Stop living beyond your means is the only advise that I can give you as far as being broke and having bills that you cannot afford. Look at your bills and decide what you can EXIST without, not do not want or do not need, but to exist. Puts a slant on things that is hard for a young man to understand, just try it and start saving while you are able enough to work.

Answer 6

When I was working I was always afraid of owing money on my taxes at the end of the year. When I filled out my tax forms for an employer, I would elect to have extra money taken out for Federal and State taxes. Once I started doing that, I never owed money again and I was able to recieve a lot more back as a refund because I had overpaid.

Answer 7

As an alternative to startng a payment plan with the IRS, you can make the full payment via official payments and put the owed amount on a credit card. There is a fee - because you are getting a cash advance of sorts but it doesn't get as complicated as an IRS payment plan. This is what I would do if I knew I could pay the creidt card bill in FULL in a few months.

Answer 8

", you may be interested in some of the Tax Prep Deals I found that saves some money on tax prep services online.

Answer 9

If you have earned income, you must file. It does not matter that you were only 17.

Answer 10

you made 15k and they only witheld 304 dollars for feds? theres the problem,....are you claiming single 3? check your w-4 and make sure you are claiming single 0, otherwise you are screwed.