Hi. This is a pretty basic question, sorry. But I'm 18 and it's the first time I've had to worry about tax returns/extensions. I am not claimed as a dependent by anyone. I know that a deduction doesn't function the same way as a credit. But does a deduction reduce the amount of my income that is taxable, or is it only used to determine which tax bracket you fall into? I am a full time college student, and I received $5000 in 2006 from a small trust fund. Given that the standard deduction is $5150, and the personal exemption is like $3300, I owe nothing, right? Is this true for the California state taxes also? Also, if I don't owe, then I don't need to file, do I? I assume I'm not getting a refund if I never actually paid anything. Could someone let me know if I'm right about all this? I thought I didn't need to file, but then someone told me otherwise, so I'm kind of panicking. I need to do an extension really quick if I was wrong. Thanks!
2007-04-17 17:10:26 · 5 answers · asked by glitter gal 1 in Business & Finance ➔ Taxes ➔ United States
Don't panic. If you can't be claimed as a dependent, then you don't have to file federal. And you're right, if you didn't pay anything in, you won't get anything back. You didn't need to do an extension - you don't have to file for federal. I'm not sure about CA.
A deduction would reduce the amount of your taxable income.
You are only eligible for the telephone tax credit that someone mentioned if you had a phone with long distance service that you paid for sometime in the period of March 2003 and July 2006.
2007-04-17 20:51:44 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
i'm undecided you recognize in basic terms what a reimbursement is. contained in the path of the twelve months you have money withheld out of your paycheck for federal income tax. on the top of the twelve months, you prepare a variety reported as a tax return to calculate how plenty tax you owe entire for the twelve months, and evaluate that to what grow to be withheld. in case you had extra withheld than your complete tax, you get the extra desirable lower back as a reimbursement. in case you probably did no longer have adequate withheld, you may desire to pay the rest quite than getting a reimbursement. a reimbursement isn't some form of bonus the government grants for working. that's like in case you went to WalMart and offered $sixteen properly worth of things, yet gave the cashier a $20 invoice. you will get a "refund" of $4, even although that's not them providing you with some thing, that's in basic terms getting your guy or woman money lower back. You paid in $sixteen.87 for federal withholding. You did no longer make adequate to owe any taxes. so as that's what you will get lower back. actually, for the reason which you're allowed to around to the closest dollar, you may get $17 lower back - yet i'm constructive the extra desirable thirteen cents isn't what you have been asking approximately. There are a pair credit that folk can get that they did no longer pay in, yet you're no longer eligible for those. you may desire to the two be a minimum of age 25, or have a based new child.
2016-10-03 04:07:19 · answer #2 · answered by ? 4 · 0⤊ 0⤋
You do not need to file a federal tax return. However, you have to file and pay income taxes to California on the $5000 from your trust income.
2007-04-18 03:04:12 · answer #3 · answered by c1523456 6 · 0⤊ 0⤋
File a return to get your telephone excise tax refund of $30.
2007-04-17 19:12:55 · answer #4 · answered by david z 1 · 0⤊ 1⤋
yes, you are right .. you do not have to file if your income is less than $8000 something (believe $8400) and also if you have not paid any FED tax on it... I'm not quit sure about state tax though.. you might want to check state tax website or form for that
2007-04-17 17:20:09 · answer #5 · answered by David 1 · 0⤊ 0⤋