Currently I am a student and work part time earning very little money as my only source of income. What is the amount of income maximum where you will have to file or not?
2007-09-19 05:57:45 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If your income is from self-employment, then if you make $400 or more you have to file a tax return. If it's from a job where they are withholding social security and medicare from your paycheck, the limit is $5350 for 2007 if you can be claimed as a dependent, or $8750 if you can't be claimed as a dependent. Students can usually, but not always, be claimed by their parents.
2007-09-19 06:07:06 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
I think many people are under the false impression that just about any student can be exempt from federal taxes and this is not the case. And it doesn't really matter how much you make if you can be claimed as a dependent. Obviously you cannot even file for a separate tax return if you're claimed as a dependent by your parents. Only family income would matter then.
So for the most thorough answer to your question go to http://www.irs.gov/faqs/faq-kw186.html
Just go to the link and read. I'd believe the irs before the other twits giving answers.
2007-09-19 13:25:55 · answer #2 · answered by Bear Master 4 · 0⤊ 1⤋
If you meet the filing requirement as explained by Judy, then you must file your own return even if your parents can claim you dependent, and it will not be taxed at your parents tax rate.
If a dependent under 18 has only the investment income (interest and dividends), then it will be taxed at the parents' tax rate. Then your parents can choose to include your income in their own return.
2007-09-19 14:44:19 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
Judy is correct as usual, but the other guy is not. Note however that if you have any witholding, you need to file to get it back, even if you are not required to file otherwise.
2007-09-19 14:09:01 · answer #4 · answered by r_kav 4 · 0⤊ 1⤋