Income Tax Question?

Question

I have a Question about income taxes. Im only 19 so i dont really know alot about the taxes and what to do. Im doing my taxes for the first time. I have a W-2 form from working where im going to reciecve back $300. Then I have a form from the Lottery saying I owe them $200. Then I have a Interest Form saying I owe $300 for savings bonds interest. After I total everything---
+$300 W-2
-$300 Interest Savings Bonds
-$200 Lottery
Owe =$200
So Basically I owe Back $200. So when I do my taxes which im using turbo tax for the first time could I mail In a Check or Money Order for $200 with my income Tax Pamphlet. Oh Yeah and also do I have to include all my tax forms(W-2,Interest From,Lottery Form) that I received in the envelope im mailing in with my income tax pamphlet when I mail in taxes.

Answer 1

You put all of the income on the tax return.
That's Box 1 on the W-2, the Interest amount from the 1099-INT and the Prize amount from the lottery prize (the lottery prize goes down as "other income" on line 21 of the 1040).

You total this up.

Then you get a standard deduction (assuming you are not eligible to be claimed as a dependent--eg, were not in school during 2007) of $5350. Unless you are a dependent, you also get a standard deduction of $3400. You subtract these from your income to get your taxable income.

If you have taxable income, you look it up in the tax table. The first $71825 is taxed at 10%.

THEN AND ONLY THEN do you compare the tax with the taxes withheld on the forms. If you had more tax withheld than needed, you get a refund. If you had less tax withheld than needed (very easy to have happen with savings bonds), then you write a check for the difference.

Answer 2

I think you are mixing up a lot of numbers that aren't actually really related. You might not owe as much as you think you do. When it comes time to do your taxes, post again here with all of the numbers from each of the forms, and somebody can help you out.

I assume that the $300 you are talking about on your W-2 is what was withheld, and that you made little enough that you won't owe anything. If you're a dependent of your parents (still in school and not out on your own) you can make $5350 for the year before you have to pay tax - that would include the interest and the lottery win.

The lottery form says you owe them $200? That would be very strange - are you sure that's not your total winnings, or the amount they already withheld for taxes? If you won $800, they might have withheld $200 of it. If your total win was $200, I don't think you'd have a piece of paper from them.

When you file, you'll add your total income from your job, plus the lottery amount that you won, plus the $300 interest. You'll calculate the tax you owe, if any, on that amount. Then you will add up what was withheld from your job ($300?) to what was withheld from your lottery win. If the total tax is greater than the withholding, the difference is what you'll send in. If the total withholding is more than the tax you owe, you'll get the extra back as a refund.

Answer 3

It is not really very "simple". If it was, there would be no need for discussion boards like this.
A W2 doesn't tell you how much you will "receive". The forms from the lottery and the bank don't tell you how much you "owe".
Read the 1040 Instructions, and let us know what parts you don't understand.

Answer 4

Just follow the step by step instructions on the 1040 or 1040A and you will be fine.

Each line on the form tells you what to do and how to calculate the tax that you owe. It's really very simple.

cheers.