I am a full time college student and I also work for my school's transit system. When I first got hired and filled out my tax information I may have done so incorrectly. I may have placed a 1 in the area where it asks about dependents, I don't have any. I believe that because of this there are not a lot of taxes being taken out of my paychecks. For instance, I received a check once for about a gross pay of $602 and about $6 of federal and $16 for state taxes were taken out. I redid my tax information and requested that an additional $5 be taken out of federal and state each. And when I redid it, I put a zero in the area for the dependents. But, the amount of taxes being taken out is still not what I think it should be. No more than about $40 for each check. I don't make that much, my gross a year would probably be about $11,000. Will I have to pay the IRS during tax season because of this tax situation? How do I fix this???
2007-08-29 14:19:21 · 5 answers · asked by ? 2 in Business & Finance ➔ Taxes ➔ United States
Are you a dependent of your parents? That would determine how much tax liability you would have with the IRS as if you are a dependent of someone else you don't get to claim your personal exemption which is $3,400 for 2007. But as long as what you owe the IRS is not more than $1,000 there will be no underpayment penalty for taxes. Also, I have attached a link to a paycheck calculator website, www.paycheckcity.com, to help you determine how much you should be having withheld from your paycheck.
2007-08-29 14:43:36 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If your income is around $11,000 and you are a dependent, your federal tax liability for the year will be around $565. If you end up with less than that withheld, you'd have to pay the rest when you file, but there won't be a penalty as long as you owe under $1000, and unless you suddenly get a huge raise, you wouldn't owe anywhere near that! If you think you'll be short of the $565 or so, make sure you have enough put back to pay when you file.
2007-08-29 21:49:59 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You don't provide all the relevant details, but likely you are not being taxed much, because your federal income tax liability will be about zero at the end of the year.
It's those evil 'rich' people the Dems are always railing against that pay all the income taxes, not the working poor.
2007-08-29 22:11:02 · answer #3 · answered by heart_and_troll 5 · 0⤊ 1⤋
Go to the HR of your company and explain the situation and make the change. You might also want to start saving a portion of your check for the time you've miss-reported because you'll have to pay for sure.
2007-08-29 21:27:25 · answer #4 · answered by Lex 7 · 0⤊ 1⤋
way to complex, hire an d accountant
2007-08-29 21:59:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋