I am 18 years old and I just got a job that pays me aproximately $15,000 a year. My parents claimed me as a dependant on their taxes and I am a full time student so I understand that I can't claim myself. I want to know if I can still get any of my tax money back. My main question is about some business expenses, I got a phone line and a headset telephone that I use strictly for business and was hoping that I could write them off on my taxes but now Im not so sure if I can even file taxes. I'm new at this. Somebody please help me.
2007-08-17 11:20:37 · 6 answers · asked by shelly 2 in Business & Finance ➔ Taxes ➔ United States
Whether you get anything back depends on how much is withheld for income taxes from your paychecks - if too much is withheld, then you'll get the extra back.
As to the expenses, they'd be deductible only if you itemize. If you don't itemize, you get a standard deduction of $5350, so you'd only itemize if your deductions totalled more than that, which they almost surely don't. This would be the same answer whether your parents claim you or not.
If you're 18 and a full-time student, and live with your parents at least half of the year, not counting temporary absences such as for school, and you don't provide over half of your own support for the year, then your parents are allowed to claim you. Contrary to what someone above said, you don't just get to decide who will claim you - if your parents are eligible to claim you by those rules, even if they don't, you are not allowed to claim yourself.
With income of $15K for the year, you not only can, but are required to file a tax return. You'll calculate your taxes, then if you paid in more than that, you'll get the extra back. Your tax liability will be around $1081 for the year.
2007-08-17 11:50:30 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
Not only *can* you file taxes, but you *must* file taxes.
If you own a business, you can (in general) deduct expenses which are reasonable and necessary to conduct that business. The first telephone line in your home is not deductible, but if you live with your folks, that means your parents' phone line. You would deduct the phone line and the headset telephone on Schedule C.
If you are an employee, employee business expenses are claimed as an itemized deduction. Most people without a mortgage (and many people with mortgages) find it more advantageous to take the standard deduction.
However, if your parents claim you as a dependent on their income taxes next year, that will affect what options are available to you in filing your own income taxes. It makes sense for you AND your parents to go to the same tax preparer, because the returns need to be coordinated. Since tax preparers are not allowed to reveal details of your return to anyone, it's substantially easier for one preparer to do both returns.
Good luck with your new job, and with your schooling. Keep your eye on the prize, and don't let the first interfere with the second!
2007-08-17 11:37:46 · answer #2 · answered by Anonymous · 1⤊ 1⤋
The information already submitted is good. Chances are your parents will be claiming you since you no doubt will have education expenses and using those credits on their return will be giving them a bigger refund than what you will end of having. File your return, you may or may not get a refund. When I prepare tax returns for my clients int his situation, I usually inform them how much they are saving by claiming their student child and how much credit--and how much their dependent child is losing by having the parents claim them. It usually works out that the parents give some of their refund to their child.
Good luck to you--study hard!!
2007-08-17 12:05:48 · answer #3 · answered by IRENE THE BOOKIE 3 · 1⤊ 0⤋
Since you are 18 then yes all you do is check the box that says someone else can claim you as a dependant. Your headset is exempt and a portion (not all) of your phone bill is exempt. You must file taxes.
19 is the cutoff age unles syou go to school then its 24.
2007-08-17 11:34:59 · answer #4 · answered by Anonymous · 0⤊ 4⤋
The short answer on the business expenses is no you can't deduct them anywhere because of other limits I will not go into.
You and your parnts should sit down with a professional who will prepare your taxes both ways with you claiming yourself etc. and see which way comes out best.
You certainly can claim your own exemption or they can but not both.
2007-08-17 11:25:59 · answer #5 · answered by Anonymous · 1⤊ 3⤋
In order to do make claims for expenses, your parents need to stop claiming you.
2007-08-17 11:26:43 · answer #6 · answered by Brina 2 · 0⤊ 4⤋