tax question...agrument at work?

[Katie]

My daughter who is 17 made 8010.00 in 2009 working at Target. Target only took out 220.00 in federal withholding.
I am claiming her on my taxes. I believe she owes the IRS over 600.00....my fellow workers..do not.

If i am claiming her..she can not claim herself, thus losing the exception..correct? I think the number is so large due to the Obama tax laws he changed in April....anyway...
I know it's a generic question...but 8000 made, 220 taken out for federal taxes....17 yr old

What do you guys think?

 

[golfgal]

She needs to file her own taxes since she made over $5100 (I think the number is that). You can still claim her--she files a 1040EZ and that is on the form. You should also have her check what her deductions are at work and perhaps drop that by one.

 

[Katie]

she claimed 0....but obviously that's not going to be enough!
Do you agree she is goign to have to pay?

 

[glitterkittyy]

My daughter who is 17 made 8010.00 in 2009 working at Target. Target only took out 220.00 in federal withholding.
I am claiming her on my taxes. I believe she owes the IRS over 600.00....my fellow workers..do not.

If i am claiming her..she can not claim herself, thus losing the exception..correct? I think the number is so large due to the Obama tax laws he changed in April....anyway...
I know it's a generic question...but 8000 made, 220 taken out for federal taxes....17 yr old

What do you guys think?

You are right. According to the tax tables, she owes.

She should fill out a new W4 and put down single and zero (again, I know she is already listed with this) and then complete the next section where she can identify an extra amount to withhold each paycheck. What is probably happening is that her paycheck each pay period isn't usually enough to count for taxes. It doesn't have much to do with the Obama tax thing. She would have to make more than $230 biweekly (pretty sure that's the right #) to have anything withheld.

 

[AshleyW]

I put in all her information to the H&R Block taxes calculator.. 17 years old, $8010 income, $220 federal taxes paid, 0 dependents.. and it popped up with a $620 refund. It said she'd get all her taxes paid back, plus a $400 "making work pay" tax credit.

Maybe it's different because you're claiming her. I don't know anything about taxes - I just like playing with online calculators.

 

[glitterkittyy]

I put in all her information to the H&R Block taxes calculator.. 17 years old, $8010 income, $220 federal taxes paid, 0 dependents.. and it popped up with a $620 refund. It said she'd get all her taxes paid back, plus a $400 "making work pay" tax credit.

Maybe it's different because you're claiming her. I don't know anything about taxes - I just like playing with online calculators.

Yep!

 

[golfgal]

she claimed 0....but obviously that's not going to be enough!
Do you agree she is goign to have to pay?

I would make sure that Target is really taking out at the zero exemptions rate. I found a tax calculator an it said she would owe $20. I found another calculator that looked the same as the first one and it said she owed $45.

She does not qualify for the making work pay credit. I did the form from the IRS site and it said she owes $813 in total tax.

I would go with what is on the form. I would try doing the free online Turbo Tax version of the 1040 and the 1040EZ to see if it comes up with something else though.

 

[jel0511]

You are correct, if you claim her, she can't claim herself. Question though. If she takes the exemption, it looks like a benefit of 1200 (not owing the 600 and getting 600 back), if you don't claim her, how much does it effect your total owed or refund. Look into what gets you a better outcome.

 

[Green Tea]

I put in all her information to the H&R Block taxes calculator.. 17 years old, $8010 income, $220 federal taxes paid, 0 dependents.. and it popped up with a $620 refund. It said she'd get all her taxes paid back, plus a $400 "making work pay" tax credit.

Maybe it's different because you're claiming her. I don't know anything about taxes - I just like playing with online calculators.

Right. She won't qualify for the making work pay thing.

You claim her as a dependent as usual. She files her own return and says she is claimed on another return as a dependent.

Turbo tax takes care of all it for you.

 

[Cheshire Figment]

See the responses to this same question in the Budget Board. I did not run the calculations for Illinois State Tax, but as far as the Federal is concerned she will owe all of $11.00.

Mike (CPA Retired)

 

[clhcpaca]

HI

When I put her info into our tax program at work. $8010 in wages and $220 in federal taxes, I ended up with her owing $11. She loses the personal exemption, but does get the standard deduction of $5700, so her taxable income is $2310 with tax of $231. Thus, she will owe $11, as Cheshire Figment said.

Cindy (CPA, not retired yet)

 

[golfgal]

HI

When I put her info into our tax program at work. $8010 in wages and $220 in federal taxes, I ended up with her owing $11. She loses the personal exemption, but does get the standard deduction of $5700, so her taxable income is $2310 with tax of $231. Thus, she will owe $11, as Cheshire Figment said.

Cindy (CPA, not retired yet)

Do you have to use the 1040 form to do this? I looked at the 1040EZ and it only talks about a deduction if someone isn't claiming you. It does have a bubble that says to use the 1040 but wasn't the purpose of the EZ so people didn't file the 1040??? I wonder if all those years ago when I filed my EZ's if they owe me more money back .

 

[SereneOne]

We claim our son and he still will be recieving $380 back. Three hundred from the state and eighty from federal. He did not make as much as your daughter, a couple thousand less.

 

[Cheshire Figment]

Do you have to use the 1040 form to do this? I looked at the 1040EZ and it only talks about a deduction if someone isn't claiming you. It does have a bubble that says to use the 1040 but wasn't the purpose of the EZ so people didn't file the 1040??? I wonder if all those years ago when I filed my EZ's if they owe me more money back .

The 1040-EZ will work. All you need to do is check the block on line five and follow the top worksheet on the back of the form.

 

[golfgal]

The 1040-EZ will work. All you need to do is check the block on line five and follow the top worksheet on the back of the form.

Thanks, I didn't look at the worksheets .

 

[TEENEE]

We had a similar situation this year. My son made over $10,000 (he's 18). I didn't claim him on my taxes so that he would get a better refund. By not claiming him I lost $500.00 but he got back $1300. He is a college freshman and was able to write off his books and the portion of his tuition that he paid so that helped too.

 

[tar heel]

We had a similar situation this year. My son made over $10,000 (he's 18). I didn't claim him on my taxes so that he would get a better refund. By not claiming him I lost $500.00 but he got back $1300. He is a college freshman and was able to write off his books and the portion of his tuition that he paid so that helped too.

Your son may have shortchanged himself on the tuition unless the part he didn't pay is in scholarships. It is considered paid by the person who claims the student as a dependent. For example, grandparents or the student himself may help pay, but the parents get the credit b/c they claim the student as a dependent.

DH and I are in a higher tax bracket than our college student, so we'll take the deduction as long as it's legal.

 

[TEENEE]

Your son may have shortchanged himself on the tuition unless the part he didn't pay is in scholarships. It is considered paid by the person who claims the student as a dependent.

DH and I are in a higher tax bracket than our college student, so we'll take the deduction as long as it's legal.

You are right. The part of his tuition that he didn't claim was scholarship money.

 

[Green Tea]

We had a similar situation this year. My son made over $10,000 (he's 18). I didn't claim him on my taxes so that he would get a better refund. By not claiming him I lost $500.00 but he got back $1300. He is a college freshman and was able to write off his books and the portion of his tuition that he paid so that helped too.

If he is not your dependent, you can not keep him on your health insurance, can you?? And how did you you only lose $500. You would lose the entire exemption for one person.

My kid asked me about that and I said well health ins would be lost. You'd have to get your own insurance, it would affect college tuitions. Um no, he paid the tax on whatever he earned.

If insurance laws in your state or with your particular group policy allow a non dependent child to remain pn your policy, the value of the benefit to that person may become taxable income to you.