I work as an intern for my church and only make $1,000 a month. I know very little about taxes, but I have heard that if your income is below a certain amount that there is a way to get a tax return either in part or full. Can anyone verify or help me out with this, thanks.
2007-04-23 16:25:21 · 5 answers · asked by Ryan 2 in Business & Finance ➔ Taxes ➔ United States
I work as an intern for my church in Texas (where there is no income tax, I made a mistake in my original question sorry) and only make $1,000 a month. I know very little about taxes or social security, but I know that out of my $1,000 salary I only get about $800. I know part of my income is going to Social Security, but I heard that if you make below a certain amount you can have that money that is going to Social Security returned to you. Can anyone verify or help me out with this, thanks.
2007-04-23 16:31:21 · update #1
The refund that was designed to return all or part of Social Security taxes to low-income taxpayers is the Earned Income Credit. If you have no children and earn less than $12,000 then you may get some Earned Income Credit.
In addition, some of the income taxes that you paid in may be refunded to you. If you are single and you earned less than $8,450 in 2006 you would get all of your federal tax refunded to you.
Working for a nonprofit has no bearing on your income taxes.
2007-04-23 17:26:05 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
There are limits where if you make less, you get all your withholding back, but at $12,000 you're over those limits if you're single - if you are married filing a joint return and that's your only income, then you'd get all of your withholding back if it's on a W-2.
Whether you get a refund depends on how much you have withheld. For 2006, with an income of $12,000 a year, if you're single, no dependents, and are not a dependent, and the income is on a W-2, your total federal income tax would be around $350 - if you had more than that withheld for federal income tax the extra would be refunded to you - if you had less withheld, you'd have to pay the balance.
It sounds from your additional information that you've probably got quite a bit coming out for income tax, since social security and medicare would b less than $80 a month deducted. You might end up with quite a bit of overpayment refunded to you, unless something else is being deducted that you didn't mention, like health insurance or something.
The social security and medicare money will not be returned to you.
2007-04-23 23:38:52 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The maximum income you can have from wages and not pay any tax is $8,450 for 2006. Since you make more than that you must file a return. You will have a tax liability though it will only be a few hundred dollars. Whether you get a refund or not will depend entirely upon how much income tax was withheld from your pay.
WARNING: Some churches do not participate in Social Security or withhold it from their employees' wages. If you are in that situation, you MUST attach Schedule SE to your return and pay the Self Employment tax at 15.3%. Churches that do that do a serious disservice to their employees since the employees (other than possibly the ministers) are NOT exempt from Social Security taxes.
Every dollar of earned income is subject to Social Security tax, up to $97,400 per year and every dollar is subject to Medicare taxes.
2007-04-23 23:40:43 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
File a new w-4 and claim an extra exemption or two (If you paid no tax last year) They will withhold no tax from your check. When you fill out your tax next year, claim the correct number of exemptions and see if you qualify for earned income credit.....Nuf Said You will pay SSI no matter what...
2007-04-23 23:33:17 · answer #4 · answered by Elo Fudpucker 5 · 0⤊ 1⤋
I have never heard of SS or Medicare taxes being returned, Only State and Federal.
2007-04-23 23:33:30 · answer #5 · answered by gnomes31 5 · 0⤊ 0⤋