posted
...I begin to wonder about my finances. Specifically, why I've never received a tax refund in my life, despite being a dependent student who hasn't earned over $5,000 a year yet. In fact, last year I had to pay an additional $200 or so on top of the $300-$400 that was already taken out of my wages.
Something just seems fishy about that. Is the IRS stealing from me? Or should I just get used to eating ramen for 2 out of 3 meals a day?
Posts: 86 | Registered: Feb 2001
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You probably shouldn't be paying taxes at all; chances are, it should all be coming back you. Hire an accountant. Something is wrong.
Posts: 2267 | Registered: May 2005
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Boon
unregistered
posted
Uh, the fact that you're a DEPENDENT STUDENT may have something to do with it. Specifically, your parents claim the exemptions for you, so you don't get to claim yourself on your taxes. In addition, when you filled out your W-4 (the paper at work when you first got hired that told your employer how much to take out) you probably put down that you file single, no? Well, that's true, but you should also put down that you need extra held out because you don't claim yourself at all.
edit: also, if you'd like me to crunch the numbers and explain to you exactly WHY you had to pay in a bit more, or make sure all is correct, I'd be happy to do that.
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quote:Uh, the fact that you're a DEPENDENT STUDENT may have something to do with it.
Why do you suppose that? On the surface, I would think that for someone who earns $5,000 a year, the difference between claiming 0 and claiming 1 should be fairly negligible.
Posts: 2267 | Registered: May 2005
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posted
Someone earning around $5000 a year should have a taxable income of zero or near zero, even with 0 exemptions, because the standard deductible (even for dependent children) is over $5000.
Which tax form have you been filling out?
Posts: 15770 | Registered: Dec 2001
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quote:Originally posted by TL: You're terrible at doing taxes?
That is definitely true. For some reason, nothing about taxes or the tax process makes sense to me. Which is going to be a serious problem my entire life.
So Boon, what you're saying is that my parents get the refund, instead of me? I kind of suspected that would be the case. It confuses me, though, because my brother was in a very similar situation (dependent student, making very little), and yet somehow got sizeable tax returns every year.
Also, I'm confused by the "you don't get to claim yourself on your taxes" statement. What does that mean? And what do you mean when you say that I should ask for extra held out? Wouldn't that just mean that I lose more money to the void?
Posts: 86 | Registered: Feb 2001
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quote:Originally posted by fugu13: Which tax form have you been filling out?
I can't remember. I've been filling them out online, and my hard copies are across the country. All I recall is that there were W-2's and 1099's involved somewhere.
Posts: 86 | Registered: Feb 2001
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posted
The money taken out of your paycheck, depending on which money we're talking about, is probably various taxes that cannot be avoided.
Have you saved one of your W2's? If so, download a copy of the 1040EZ for that year (just google 1040ez and the year). Also get the instructions, which should show up in the same google search. Fill it out completely. If you have any questions whatsoever, post them here.
Your only income is work income, and perhaps a little bank interest, correct? No major investments put in by your parents or anything like that?
Posts: 15770 | Registered: Dec 2001
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posted
I have a $1400 investment account I started when I was 18. Not exactly major Posts: 86 | Registered: Feb 2001
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Boon
unregistered
posted
Assuming $5000 income in 2006, $500 (10%) withheld, single, under 24, dependent student, the 1040EZ would have the following numbers:
Line 1: Wages: $5000 Line 2&3: Other income: $0 Line 4: AGI: $5000 Line 5: Check box if someone else can claim you: Checked and $5150 Line 6: Taxable income: $0 Line 7: Tax Withheld: $500 Line 8: EIC: $0 because you don't qualify Line 9: Phone Excise tax refund: $0 Line 10: Total payments: $500 Line 11: Tax: $0 (as taken from the table in the instructions) So, you'd get back all you'd paid in.
This would all change if you weren't a dependent student (which is what you said in the opening post). If that were the case, you could have earned up to $8450 in 2006 and still gotten back all you'd paid in.
So, yeah...maybe somebody's been screwing you over. Want me to crunch some actual numbers for you? No names or SSN's or anything like that needed, just income, tax withheld, stuff like that. You can email me through the board.
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posted
Boon knows her stuff, I'd take her up on the offer were I you.
Posts: 15770 | Registered: Dec 2001
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Boon
unregistered
posted
You should also keep in mind that if mistakes were actually made on your returns, you only have three years from the date they were due to file amendments and actually get refunds. So you could file amended returns between now and April 15th for 2006, 2005, and 2004 and get returns if you were due them.
Amended returns are not much more complicated than regular returns (requiring about an extra couple of minutes to fill out by hand). If, in fact, there are mistakes on your previous returns, and you filed 1040EZ, I'd be willing and happy to fill these out for you (minus identifying information) so you can file them.
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