18 years old tax question?

Question

I am going to file for the 1040ez form. However, how can I file for both federal and state taxes? I had some money withheld and I know I earned less than $5000. I also cashed in som government savings bonds that were valued around $2000. What would happen if I didn't add that as my income? Would they come to get me!

How do I file for state and federal tax?

also, how can i list all of my 3 part time jobs?

Answer 1

Please do NOT fall for the advice that paying taxes is voluntary. Here is the information about that Tax Evasion Scheme directly from the internet:

http://www.irs.gov/businesses/small/article/0,,id=106502,00.html

Here is information from the IRS about what to you should do about your savings bond:

"If your total taxable interest for the year is more than $1500, you report (and separately identify) the interest on Schedule B of Form 1040 or Schedule 1 of Form 1040A. If your total interest is not more than $1500 for the year, report the savings bond interest with your other interest on the "Interest" line of your tax return. If you do not report the increase in the redemption value of the bonds as interest each year, you must report all of the interest in the year they are cashed or otherwise disposed of. Exception: Some or all of the interest may be excludable from your gross income if you pay qualified higher education expenses for yourself, your spouse, or your dependent during the year."

As far as the state taxes, you should be able to go to your state's web site and download the form(s) and instructions. Check out this link to find your state:

http://accountant.intuit.com/practice_resources/tax/links/state_tax_forms.aspx

As to what will happen if you don't pay what you owe (if you owe) to the IRS or to your state, the IRS will send you a letter wanting you to pay what you owe plus some interest and a penalty. Depending on your state, they more than likely will do the same thing.

You are better off ALWAYS reporting and paying what you owe to the IRS and to your state. Hopefully you have enough federal withholding to offset what you owe from the interest you earned on your savings bond and will be getting a refund.

If you were a full-time student in 2006 (5 months or more) then your parents should be able to claim you and you would still file your own return. You MAY end up with less of a refund, OR owing a little more money this way. BUT if your parents claim you on their return they more than likely will come out with more of a refund or less money that they owe. They can always give you the difference. Work your returns both ways to make the best decision.

Answer 2

You have to claim the interest on the Savings Bonds. The IRS already knows how much that was; there's no way around it. It's not the face value of the bonds that matters, but how much interest was earned.

If you have more than $5,150 in earned income from wages or if you have more than $850 in unearned income you need to file or if you have more than $4,850 in earned income and $300 in unearned income you need to file. Based on your incomplete figures given, it sounds like you probably do need to file.

At any rate, since you had income taxes withheld from you wages you'll need to file to get a refund of that if nothing else.

Answer 3

they won't "come and get me" but IRS will find out and charge you interest for not paying full amount of tax due.

You'd get a letter in the mail from IRS,, might take awhile for them to get around to writing you,, but the interest compounds daily .. and it is high rate of interest...

you'll file a different return for state

you might think about going to a free tax site like VITA or TCE in your area, they can help with federal and state. if the savings bond is government bond, may not be tax charged on that in your state

Answer 4

You're fine on the savings bonds, that's not income. Somebody once paid for those using taxed income, and the govt has been using the money all this time. If it ever matters, a company will send you a 1099 for any gains you have.

Filing state and federal are two completely separate processes, and you'll need different forms for it.

Answer 5

Bubber is wrong on the savings bonds. The interest is taxable on your federal return, although probably not on our state. If you don't show it on your return, no, they won't come and get you, but will send you a bill for the additional taxes you owe, plus interest and penalties. And then if you don't pay it voluntarily, they'll get it one way or the other. Don't mess with them - that would be a real bad way to start your tax-paying years.

Answer 6

For me, it doesn't change what I get back anyway.
Federal and State are different forms. In my county, there is also a local form, so make sure you get all the proper forms.
if you are a student, you can also file online for free.

Answer 7

You don't need to file. It is totally voluntary. It even says so in the IRS code.