I am really confused about taxes and what not.?

Question

I got my first job this year. Will i have to start paying taxes even tho im 17?? and how would i do it. My parents arent gonna help me so what do i need to do.

I just am worrie dbecaue my friend owes the governmt taxes beacuse shes been workin since 14 and hasnt ever payed.

I dont wanna end up owing them money, what do i need to do?? All my tax paperwork for the job was filled out for me. And I do have taxes taken out each paycheck but i dont know what else i owe the goevenment. Could someone please explain this or you can email me [e-mail]

Answer 1

Employer will have you fill out a W-4 form for both federal and state. You should claim 0 on W-4 for exemptions and they will take out federal and state withholding based on that information. Social security tax is 6.2% of your gross pay and medicare tax is 1.45% of your gross pay. Those should be the only taxes you will need to be concerned with.

Answer 2

You might or might not owe any tax - that will depend on how much you make, and won't have anything to do with being 17. If you make over $5350 this year, you'll owe some taxes to the feds, but since you are having taxes taken out, you'll probably be covered. If you make less than $5350 for the year, you'll get back anything they are withholding for federal income tax, and if you owe some but they take out too much, you'll get the extra back - that's called a refund. They are also taking money out for social security and medicare - you won't get that back.

Depending on where you live, you might also owe state and/or local income tax. They are probably taking that out too from your paychecks.

In January you'll get a form from your employer called a W-2 that will show what you made for 2007, and what was deducted for each category. You'll use this to fill out a tax form. It's not real hard, and you can probably do it yourself rather than have to pay someone to do it - when you get the W-2, come back to this forum and ask for advice, or save my ID and email me - first time through, it will probably be good to have a little help, but it's not real complicated.

Good luck. You'll be OK.

Answer 3

MukaT is correct.

I hope this helps you, because you are 17 years old your parents are able to claim you for a dependency exemption, you are not able to claim yourself for a dependency exemption.

You need to look at your paycheck. You will see Federal Withholding, FICA Withholding (Social Security), Medicare Withholding, State Withholding, and City Withholding (Local Withholding if applicable).

For the Federal you will need to file at the end of the tax year an Individual Federal Tax Form basically known as a U.S. 1040, for the State where you reside you may also have to file a State 1040.

The only way you will be able to receive a Federal and/or State Tax refund is if you have Federal and State withholding on each paycheck, for example you made $250 for the week, you have $25 withheld for Federal Tax, and $15 withheld for State Tax, if at the end of the year you overpaid you will receive a refund, if you paid just enough in taxes you will neither receive a refund nor owe, however if you did not have enough taxes withheld you may end up owing on Federal and/or State tax.

Find out if you are able to speak to a payroll person for the company you work for and make sure you are having Federal, State, and if applicable City Tax withholding.

Social Security and Medicare tax is tax withheld and when you reach retirement age you will receive a Social Security check with an amount for Medicare.

If you are doing well where you work you might want to look into a Roth IRA or investing in a Mutual Fund to save for retirement. Just a suggestion.

Make sure you save to get your taxes prepared at the end of the tax year at least $200, it might not cost $200 to have your taxes prepared but it is good to have extra saved. The person preparing your taxes at the end of the year will be able to assist you with any other tax questions.

The reason I state the above is because you are single and your filing status is single and it is total gross earnings for the year and you do not have the information as of yet.

Do not lose your W-2s, anything with 1099 Div, 1099 Int, 1099B, 1099E, 1099T, anything which states it is a tax document, you will need to take with you to the tax office, also remember to take your Social Security Card, the tax person will need this to correctly fill out your tax forms.

Answer 4

If your employer is taking out taxes on your wages, you should not have to worry about owing a lot of taxes. If you are concerned, then don't take any dependents. That way you will have more taken out than you need. If you count yourself as a dependent I doubt if you will need to worry about paying taxes at the end of the year. The only thing you owe the government is income taxes, social security taxes, and medicare taxes. Those are all taken out by your employer. I don't think you have anything to worry about.

Answer 5

1. Can your parents claim you their dependent? For this both the conditions must be true:
*The child (you ) must have lived with your parents for more than half of the year.
*The child must not have provided more than half of his or her own support for the year.

2. If your parents can claim you dependent, then if your income for 2007 is up to $5,350, you don't have any tax liability.
If your parents cannot claim you a dependent, then if your income for 2007 is up to $8,750, you don't have any tax liability.

3. You must file your return if your income exceeds amounts given in (2).
You should file your return even if income is below amounts given in (2) and Federal tax is withheld from your paycheck. In this case you will get refund.

4. You will need to file form 1040EZ (for 2007) by April 15, 2008.

5. In the mean while, you should download 1040EZ for 2006 and go through it. It is easy. The form can be downloaded from:
http://www.irs.gov/formspubs/lists/0,,id=97817,00.html