I am 19 years old. My dad claims me as a dependent.
In 2006 I earned:
$3,708.17 in wages.
$2.99 in interest payments
$26.04 in dividend payments.
$608.06 in short term capital gains.
From my paychecks:
$206.22 was withheld in Federal Income Taxes.
$229.90 was withheld in Social Security Taxes
$53.77 was withheld in Medicare Taxes.
$51.01 was withheld in New Jersey State Income Taxes.
$34.31 was withheld in SUI/SDI Taxes.
Also, I don't know if this matters, but I had about $200 in gambling losses.
Can someone who is knowledgeable please tell me what I can get in refunds (if I can get part of it back in refunds or all of it), and if I have to pay short term gains tax?
Thank you so much in advance.
2007-02-23 20:23:01 · 8 answers · asked by RockiesFan 2 in Business & Finance ➔ Taxes ➔ United States
Since your income is below the limit ($5150 as a dependent) where you'd have to pay federal taxes, you should file to get back the whole $206 that was withheld. You won't get the Social Security, Medicare and SUI back.
Short term capital gains are treated as ordinary income and add to your other ordinary income (wages, interest, dividends). But since that total is below $5150, you don't have to pay tax on that.
The gambling losses don't figure in your return, and wouldn't even if you owed taxes, although if you did, and if you itemized, you could deduct them to the extent that you claimed gambling winnings on that year's return if you had proper records of all your gambling activity.
Since you have the capital gain, you won't be able to file 1040EZ form. You'll use a 1040, and a schedule D to show the capital gain. Don't worry, it's not that complex - you'll have a lot of lines without any numbers on them.
Unless you have a dependent child you didn't mention, you aren't eligible at age 19 for EIC as another responder suggested.
Since I'm not familiar with NJ rules, I'll leave it to someone who knows what they're talking about to guide you there.
2007-02-24 12:15:45 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You will need to file a return. As a dependent of your parents you may not claim a personal exemption on your tax return. Because you have earned income (wages ) you are entitle to a standard deduction for your wages plus $300.
In you case you would take a standard deduction of $4,008 and then pay tax on the amount of income above that amount ($314 ).
You will get a refund for most of your federal and state withheld taxes. Medicare, social security and the SUI/SDI taxes are not refundable.
Good Luck!
2007-02-23 22:56:10 · answer #2 · answered by waggy_33 6 · 0⤊ 1⤋
The saying 'The Only Sure Things In Life Are Death and Taxes' is true for all Americans. From a glance, I would guess that you are in the tax filer category who don't have to file for lack of sufficient income, based on the IRS's rules. So, go to the IRS web page or grab your pop's tax packet for '06 and find out what your filing status is. Then get ready to pay taxes for the rest of your natural life...It is not rocket science. Unless you have a complicated capital gain or capital appreciation scenario, you should have no problem. The tax packet provided by the IRS has step-by-step intstructions. Good luck dog! In a perfect world you would receive a refund this year of $206 + $51= $257.00; round down to nearest dollar if less than $.50; and round up to nearest dollar when more than $.50; get it?
2007-02-23 22:24:33 · answer #3 · answered by WVJaybird 2 · 0⤊ 1⤋
You will need to file a tax return.
However, you should be able to get a refund of all of your federal income taxes paid because your total income is less than standard deduction of $5150. Also, you will probably get a little more for earned income credit.
2007-02-23 23:55:43 · answer #4 · answered by Steve 6 · 0⤊ 1⤋
file your taxes through the links ,which
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2007-02-25 19:03:09 · answer #5 · answered by ellen h 2 · 0⤊ 0⤋
as you are the first time tax filer, u can file your tax at
2007-02-25 14:20:45 · answer #6 · answered by Peater s 1 · 0⤊ 0⤋
i am not clear about you doubt but i can suggest you with a site where you can get benefited. this site is a online tax filing site. go for this for information.
byee
2007-02-23 22:11:30 · answer #7 · answered by Anonymous · 0⤊ 1⤋
u may get EIC refund http://www.taxfreer.com/
2007-02-24 00:05:37 · answer #8 · answered by Anonymous · 0⤊ 1⤋