my daughter is 16 and will begin working her 1st job. Am I understanding right that she can earn up to the standard deduction and not have to pay or file taxes? Or does she have to file regardless? I tried looking this up online but not sure where exactly to go. Any help appreciated. Oh and one more question. Since I still claim her as dependant what should she put on her W4?
2007-06-18 08:42:26 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Your partially correct and partially incorrect. In 2007 the filing requirement is $5,350 for a single tax payer claimed as someone elses dependant.
You should file out the W-4 as the questionaire instructs. I think you will get to the bottom and have 2 but it might be one.
Anyway despite the fact that she isn't required to file, if she has withholdings you should to get her money back.
If your income is below a certain level, which hers will be well under the limit, the IRS provides links to file retuns electronically.
Go to WWW.IRS.GOV and click on free file, it is on the right menu somewhere. At least it was this year they may move it.
2007-06-18 09:11:21 · answer #1 · answered by Jerry 3 · 0⤊ 0⤋
She can earn up to her standard deduction and not have to file, but as she probably is having taxes withheld from her check she would file anyway for a refund. It should not matter much what she puts, 0 or 1 exemption, tax will be 0 until she earns over her standard deduction plus 1 exemption (LY $3,300). This is true unless she has significant investment income.
2007-06-18 16:17:01 · answer #2 · answered by irongrama 6 · 0⤊ 1⤋
Yes, you're right that she can earn up to the standard deduction for the year, and not have to file or owe any income tax to the feds. Depending on where you live, she might or might not owe state or local income tax.
If she earns under that but has anything withheld, she should file to get it refunded to her.
Since she's still your dependent, she'd be safest putting single - zero allowances on her W-4 since she won't get an exemption for herself.
2007-06-18 17:16:12 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Assuming that her only income is from the job (no interest or investment or self-employment income) then she does not need to file if her income is less than the standard deduction amount, $5,350 for 2007. Of course if any income tax was withheld from her wages she'd need to file to have those withheld taxes refunded.
2007-06-18 17:54:02 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋