Im a full time college student, 18 years of age, earning minimum wage at a part time job earning less than 8k a year. I turned 18 in July of 06, and since that date, have not had an income tax deducted from my paycheck. My paycheck removes social security and medicare taxes, but no federal income tax ( i live in alabama). Do i have a tax debt, and if so how do i find out how much. I do not fully understand all of this complicated tax stuff, and i do not have many forms about my income. just simple paycheck stubbs. HELP!!
2007-03-21 08:56:07 · 4 answers · asked by KrittR23 2 in Business & Finance ➔ Taxes ➔ United States
I don't know why income tax was stopped being deducted when you turned 18, that has nothing to do with tax withholding. Unless that is the date you started working, or maybe filled out a new w4 form.
If you claim yourself on your own tax return, you will probably not owe any tax based on the info you have provided. If your parents still claim you on their return, you may owe a little. Check your W4 form with your employer, if you are not currently claiming 0 exemptions, lower the number you are claiming to have more tax withheld.
2007-03-21 09:03:02 · answer #1 · answered by Brian G 6 · 0⤊ 0⤋
I'm assuming your parents are claiming you as a dependent. If so, when you file your tax return, you will get a standard deduction of $5,150. Subtract this from your taxable wages. You should be left with approx. $2,800. Your federal tax would be 10% of this amount, or $280.
You should contribute to a traditional IRA by 4/17/07 to reduce or totally eliminate any tax due.
2007-03-21 16:21:17 · answer #2 · answered by tma 6 · 0⤊ 0⤋
If your parents CAN claim you as a dependent, then you can not take the exemption for yourself, even if your parents choose not to claim you. The first $5150 of your income is tax-free. If your parents claim you as a dependent, then they should take the Hope Credit. If they CAN claim you, but don't, then you can take the Hope Credit. The Hope Credit is for first and second year college students in a degree program at a qualified college or university. Use form 8863 to figure your credit.
2007-03-21 16:59:59 · answer #3 · answered by anr 3 · 0⤊ 0⤋
Once you start getting income then you have to file taxes if you didn't make a lot of money then they shouldn't make you pay.Just to satay on the safe side file your taxes.
2007-03-21 16:02:14 · answer #4 · answered by ad121ana 3 · 0⤊ 1⤋