Federal tax rate for those making under $500/month?

Question

Yes i am being taxes if i wasn't i would not be asking.
and statement #2 I am a Dependant.

Answer 1

1. The federal tax (and may be state tax) depends your total income in the year. What your employer is withholding for federal income tax and state income tax is not same as paying tax. Employer may be withholding more than or less than required.

2. Your status is Single Dependent. For 2007, your standard deduction (for earned income) is $5,350. You won't get personal exemption of $3,400 as you are dependent. That means on earned income up to $5,350 you won't have any federal income tax.

3. In January 2008 your employer will send you a form W2. It shows your total income and amounts withheld for various accounts (SE tax, federal tax, state tax...).

4. You will need to file your federal and state income tax returns in 2008 by April 15, 2008. The returns will show your total income (from W2) and your total federal and state taxes on that income (these tax figures has nothing to do with what you put of your W4).

5. Now if on W2 you paid more federal taxes than your federal tax liability as per your return, then you will get a refund. If on W2 you paid less federal taxes than your federal tax liability as per your return, then you must pay it.

Answer 2

As a dependent, if your income is over $5350 for the year as an employee, you will be taxed 10% on the amount over $5350.