Minors and Federal Income Taxes?

Question

I work at a pharamacy. (Started a few weeks ago) and I had to fill out some paper work. One was a W4 form. When I received my paycheck last night, money for federal income taxes were deducted from my check. Is the money supposed to be deducted? I am 17 and am a student in high school (NY).
If I'm not supposed to pay, then how can I fix this problem? can I even fix it??
Thanks in advance.

Alright, well I make minimum wage (That's 7.15 in NY) and I only work 3 days a week, 22 hours in total. I understand that FICA must be paid. It was just the Federal I was unsure about.
Can I ask my manager for a new W-4 form to make sure I've filled everything out properly?
(Thanks for the answers, btw!)

Answer 1

I disagree with M G: you do not pay taxes simply because you work. However, if you earn more than a certain amount during the year, you pay income tax. If your work falls into any of the most common categories, then you pay the FICA class (Social Security, Medicare, etc.).

I also disagree with TaylorProud: you do *not* want to get the maximum refund when you file. Rather, you want to fill out your W-4 accurately, such that you keep the money up front. The US Treasury department does not pay interest on that money, so your refund is essentially an interest-free loan frmo the time they deduct the money until you deposit your refund check.

Age has very little to do with whether or not you pay taxes. There was an alternate worksheet on the W-4 form where you could figure how many deductions to claim. That worksheet is really a kludge -- you figure out how much you expect to make through the year, and then compute how many deductions to pretend so they take out roughly the correct amount of taxes.

Income tax is based on the "ability to pay" method of taxation (the other two major ones are "per capita" and "services received"). To this extent, M G is correct, but overgeneralizing. The general idea is that those who make enough money should pay taxes -- the more you make, the heavier your tax burden. You are likely paying 5-10% of your paycheck in taxes, whereas I'm shelling out over 30%.

Since the amount they're deducting is likely inaccurate (it's merely their best estimate), you get it back in two ways:
(1) File a corrected W-4 form; this will change your deduction levels in one or two pay periods (next check or the one after).
(2) When you file your taxes early next year, you pay in any shortfall, or get a refund for any overpayment.

Does that help?

Answer 2

For every pay check, the social security and medicare taxes (at 7.65%) are deducted. You don't have any choice.

Then there is Federal and State income tax. If you think that you won't make more than $5,350 in the year 2007, then you won't have any Federal tax liability. If any Federal tax is withheld, you will get the refund check after you file your 2007 return. You must file your return.

Answer 3

Whether you owe tax depends on how much you make, not on your age. Welcome to the work world. And they'll take out social security and medicare in any case, and that's 7.65%.

If you make over $5350 for the year, you'll have some tax liability for federal. If you make less than that, and they withhold any federal income taxes, then you can file a tax return and get it all back.

If you won't make that much this year, then you can change your W-4 to "exempt" and they won't withhold income taxes, although they will still take out social security and medicare. If you do that, be sure to change it back in January if you'll make more than the limit for next year.

Answer 4

When you completed your W-4 you should have claimed 0 exemptions on your taxes. Do your parents still claim you?
You want to get the maximum refund when you file your taxes, in order to do that, they must take out taxes out of your check.
When you file at the end of the year, you will likely get most of what you paid back in a lump sum, look at it as forced savings with no interest. Then take your money refund and deposit it in your savings account for a future car or home.
Everyone who works pays Federal Income Taxes and Social Security Taxes, the Social Security, you get back when you retire.

Answer 5

If you work, you have to pay taxes.