I want to start a new job soon and I don't really understand taxes...is there a "taxes form for dummies" thing online that could teach me when it comes time to fill out the W4 form? I depend on my family for most of my living expenses, this is just extra money for myself to save for the future. I'm 18, single, no kids, but a dependent. So how do I fill one out?
Thanks!
2007-12-07 14:41:51 · 5 answers · asked by sarah 4 in Business & Finance ➔ Taxes ➔ United States
And can someone clarify the whole "getting money back at the end of the year" or "owing money at the end of the year"? Which is better and why? Why don't they take out the correct amount in the first place?
2007-12-07 14:43:07 · update #1
but why do i need a refund? why don't they just take out the correct amount in the first place?
2007-12-07 14:48:34 · update #2
Someone in the personnel department at your new job will be happy to explain to you how to fill out the W4 form. Don't fret over it, perhaps you could ask your parents advice.
2007-12-07 15:56:22 · answer #1 · answered by Bette 5 · 0⤊ 0⤋
They don't take the right ammount out to begin with because they don't decide how much to charge until the year is over.
You can do your taxes yourself very easily by going to any public library and picking up the free booklet w/instructions and all the forms you need. It's EASY - just follow the book.
OR- I 'd recommend buying the HR Block "Tax Cut" program to do it at home on your computer. If you wait until closer to April 15th, there are some pretty good deals - we actually got a free PRINTER with the purchase of ours!! For like $20 or something! It includes a free e-file, so you get your refund back faster.
Since you're single w/no kids and 1 dependent it should be a cinch. You can even get your refund direct deposited into your bank acct.
Hope that helps!
2007-12-07 15:07:16 · answer #2 · answered by Angie 4 · 1⤊ 0⤋
You'll most likely be able to use a form 1040EZ for federal - it's pretty simple. You can download the 2006 forms at irs.gov and take a look at them. The 2007 ones aren't out yet.
The employer can't take out exactly the right amount because the don't know what other income you might have. If you fill out your W-4 form accurately when you start working for them, it should be pretty close. If you make under around $100 a week they probably won't take anything out for federal income tax - which will work, since you won't owe anything.
2007-12-08 02:45:52 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
As to why they don't take out the correct amount, because your circumstances could change. You could get another job and make a lot more money, you could have a child or other expenses that qualify for tax exemptions. In short, tax authorities don't have the ability to foresee a person's tax liability by the end of a given tax year.
When you receive your W-2 for the previous tax year, you can do your own tax return. It's pretty easy, and you'll learn a lot that way.
2007-12-07 14:58:39 · answer #4 · answered by LoFlo 4 · 0⤊ 0⤋
When you fill out the W-4 put down single 0 or single 1.
When you are just getting started, 0 is better. It tends to guarantee a refund.
2007-12-07 14:45:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋