Everyone who lives and works in the United States will need to pay taxes to the government at some point in their life. But when do you need to start? What's the threshold? It all depends on the specifics of your circumstances, including your age, how much you're making, and more.
Tax Filing Vs. Payment
The most important thing to understand is that filing a return is different from actually owing anything to the government. You can submit your forms only to discover that you're not actually required to pay. However, submitting always keeps you safe for a simple reason: if you do end up owing, you'll always know about it. If you did need to submit and failed to, there could be fairly extensive penalties involved.
It's Always Better To File
Sending in your forms cannot hurt your standing with the IRS. They will never punish you for a return that wasn't strictly needed. It will simply be superfluous, unnecessary. However, if you fail to give them your information and it was required, that can lead to serious penalties if you are eventually audited.
Guide Yourself By Forms You Receive
If you receive any kind of W-2, 1099-MISC, or any other official document from an individual or business, you absolutely must submit and probably pay the government. Payment is determined by how much you ended up making. If you had a W-2, you've probably had money withheld from what you've been receiving throughout the year and are likely to receive a refund. But with a 1099, you haven't experienced withholding and thus are likely to end up owing. The exception is if you have been paying estimated taxes quarterly.
Dependents
As the child of working parents, if you aren't providing your own primary support, you're going to be claimed as a dependent. But if you have a job, you may end up owing payments of your own as well. Depending on how much you make among many other details you may see most of that refunded, but it's still a factor that must be considered. Generally, the best course of action is to ask parents. They usually have a reliable method that they use to calculate their own figures, which can often be applied to student workers as well.
Keep in mind that simply because an individual is required to file a return of their own does not mean they are disqualified from dependent status. It could mean that, but the meaning isn't guaranteed. Always approach your local office with any questions. Miami, Chicago, or Cleveland tax offices http://www.libertytax.com/ should be more than capable of assisting you.
Tax Filing Vs. Payment
The most important thing to understand is that filing a return is different from actually owing anything to the government. You can submit your forms only to discover that you're not actually required to pay. However, submitting always keeps you safe for a simple reason: if you do end up owing, you'll always know about it. If you did need to submit and failed to, there could be fairly extensive penalties involved.
It's Always Better To File
Sending in your forms cannot hurt your standing with the IRS. They will never punish you for a return that wasn't strictly needed. It will simply be superfluous, unnecessary. However, if you fail to give them your information and it was required, that can lead to serious penalties if you are eventually audited.
Guide Yourself By Forms You Receive
If you receive any kind of W-2, 1099-MISC, or any other official document from an individual or business, you absolutely must submit and probably pay the government. Payment is determined by how much you ended up making. If you had a W-2, you've probably had money withheld from what you've been receiving throughout the year and are likely to receive a refund. But with a 1099, you haven't experienced withholding and thus are likely to end up owing. The exception is if you have been paying estimated taxes quarterly.
Dependents
As the child of working parents, if you aren't providing your own primary support, you're going to be claimed as a dependent. But if you have a job, you may end up owing payments of your own as well. Depending on how much you make among many other details you may see most of that refunded, but it's still a factor that must be considered. Generally, the best course of action is to ask parents. They usually have a reliable method that they use to calculate their own figures, which can often be applied to student workers as well.
Keep in mind that simply because an individual is required to file a return of their own does not mean they are disqualified from dependent status. It could mean that, but the meaning isn't guaranteed. Always approach your local office with any questions. Miami, Chicago, or Cleveland tax offices http://www.libertytax.com/ should be more than capable of assisting you.
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