at my job, every hour on the books you get $1 in tips taken out per hour. But I guess you get that all back when you do your taxes. Someone please explain how this works, do you have to fill anything out or do you just get it back? Do you need to keep the slips or is it already on record? Also when you are 18 but still a student and living with your parents what taxes do you get back and how?
2007-04-19 14:24:46 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
No, you don't get your tips back when you do your taxes.
And you are required to keep accurate records of tips that you received, and report ALL of them when you file. If you are reporting all of your tips to your employer, then they'd already be shown on your W-2, but if you aren't, then you need to add the unreported tips on your tax return.
Whether you get money back, come out even or owe taxes at tax time depends on how much your total income is, and how much you had withheld for federal income taxes. On a tax form, you calculate your total tax liability - if you had more than that withheld for federal income tax, you get the extra refunded to you; if you didn't have at least that much withheld, you pay the difference.
If you received a W-2 for all of your income, and didn't have any tips over what you reported to your employer, you won't have any tax liability if you made under $5150 for the year so you'd get everything back that you paid in. If you made over that, you'd owe some tax which might or might not be covered by the amount you had withheld.
2007-04-19 18:20:43 · answer #1 · answered by Judy 7 · 5⤊ 0⤋
You should not be having tips deducted from your wages. They may be added in based on what you report so you can taxed on this additional income on top of your hourly wages. For Federal purposes, if you are a dependent with your parents, you have to file a tax return if you have earned income of over $5,150. States vary, so you may or may not have to file, but you should file as I am assuming you will get money back based on whatever other income you may have.
2007-04-19 22:10:53 · answer #2 · answered by Brian S 2 · 0⤊ 0⤋
ask your parent to claim you as a dependent. If your income is less than $8,450, then you don't have to file.
2007-04-19 23:24:49 · answer #3 · answered by emulwa 2 · 0⤊ 3⤋