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| *Ostroff, Fair and Company>>>United States Taxes |
Question about my taxes? |
I have a question about my taxes. Why is it that I only made 8800 last year, yet I had to pay 300 dollars in taxes come april 15th. I am a 22 year old student, took the standard deduction, and paid $94 in taxes during the year. Is it because my parents still claim me as a dependent? Or did I just miss some deductions and credits? Yes, it's mainly because you can be claimed as a dependent. If you couldn't be, you'd have only owed a small amount of tax, and the $94 withheld would have more than covered it. Since you can be claimed as a dependent, you don't get the $3300 exemption for yourself that you would if you were NOT a dependent. Note that since your parents CAN claim you as a dependent, you can't claim yourself even if they don't actually claim you. You only paid $94 on $8800? I'm guessing you claimed several deductions on your W-4? Yes, that extra $300 is because your folks claimed you as a dependent. That works out just about exactly right! From what you are saying, your parents can't legally claim you as a dependent. They have to provide you with more than half of your support. That doesn't sound like that's the case. Perhaps they should file an amended return (as you should, too.) If you provide over half of your own support, then you are not a dependent. However, if your parents claimed you, then only the first $5,150 of your wages is not taxed. The remaining $3,650 is taxed at 10%, so your tax bill was $365. If you had claimed yourself as a dependent, your tax bill would have been $35 without any credits or deductions. If you paid tuition, or had a telephone, your taxes would likely have been zero or you would have received up to a $30 refund for the telephone excise tax credit. Next year, claim yourself if you are a student and provide over half of your own support, or if you are not a student but you made over $3,300. I incorrectly gave Scott a thumbs down. If your parents don't support you , they should not be claiming you as a dependent. If they are, they are claiming a $3300 exemption, plus a possible tuition deduction or credit. |
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