Dependent 0?

[cuate01221]

So I was just hired at an autobody shop last week and am starting out at $8/hour(shitty but something is something). My employer listed me as Dependent 0.

I asked my teacher about this and he said that just means they will take more taxes out of my paid check now, but when it comes to tax returns I will be getting more.

Now, I got my first paid check for 16 worth of work and it was $128(16x8=128) which means no taxes were taken out? I am extremely confused with all of this and was hoping someone here has more knowledge on this subject?

[BIGRICH]

So I was just hired at an autobody shop last week and am starting out at $8/hour(shitty but something is something). My employer listed me as Dependent 0.

I asked my teacher about this and he said that just means they will take more taxes out of my paid check now, but when it comes to tax returns I will be getting more.

Now, I got my first paid check for 16 worth of work and it was $128(16x8=128) which means no taxes were taken out? I am extremely confused with all of this and was hoping someone here has more knowledge on this subject?

teacher is correct.....amount probably wasnt enough to get taxed

[MikeW]

I thought they taxed everything? Even if you only worked 1 hour.

1 or 0 is what you want. It's just a preference, really. Bigger check now, little-to-no return later. Or, smaller check now and a bigger return later.

[Mista Juice]

i think you need to make at least like 8 or 9k a year to be taxed.. at that rate per week (im hoping thats per week), he would make under 7k.. plus, hes obviously part time for the time being i would guess.. ive always hated figuring out tax BS.. luckily one of my coworkers that does all the payroll knows damn near everything about taxes..

as for claiming 1 or 0 on your w4, ive been claiming 0 for some time now and have been getting back a good return.. now that im older, ive changed to claiming 1 so i have more of MY money in my possession instead of the government.. i wont be getting a huge refund, but ill have more of my own money instead of basically just giving away and only getting SOME back..

[deevergote]

If you get more of your own money in your pocket, and save it properly, it's better than getting a big return.

[Oreellyfool]

Actually he probably put you down as Single and 0 allowances(Correct term, not dependent). Yes, Single and 0 means you will have the most taken out of your paycheck as possible.

And yes what Mista Juice is correct by saying is you do not get taxed on under 9k of income, but there is an exemption to this. That is if you are not claimed by some one else as a dependent. In your case you probably will be claimed by your parents. So you do not get to claim your personal exemption ($3,700) and your standard deduction goes down to $950- $5,950. So in theory, if you made more than $950, you could potentially owe tax.

Also the reason you did not have any federal tax withheld out of your paycheck is because if you times your paycheck by pay period (Weekly, bi-weekly, semi-monthly, monthly) it comes out to an amount that you will not probably owe tax. So based on the Government tax brackets and withholding tables (That can be found in Circular E <-- google it and read it in the bathroom) They do not need to withhold anything out of your paychecks until you make enough on a pay period basis to constitute a 15% tax bracket.

Lastly, If you had money withheld for federal tax out of your paycheck but you are under the filing requirements, I say file your tax return anyways because A.) you are at a low enough income level it will be free and B.) you cannot get that money back you withheld unless you file (AKA the IRS will not send it back to you without filing)

[Mista Juice]

If you get more of your own money in your pocket, and save it properly, it's better than getting a big return.

exactly.

[19dabeast85]

My wife and I both have a 3 on our w4 and we still got a 5k refund this year....time to increase it again.....

In general you claim 0 if single, 1 if married, 2 or 3 if you have children. I'm an accountant and advise everyone to start a home based business, do at least the minimum required to qualify it as a business according to tax code and then claim a 3-4 on their w4.

You keep ALL you wages in your pocket, the tax breaks of running a business far outweigh the cost of staying active in any home business model I know of (though there is one I prefer), it's a win-win. The only question is are you willing to spend a few hours a week actually building a business from home in order to take advantage of the savings.....this past year my wife and I deducted $19k in "normally" ordinary expenses as business expenses PLUS earned money with the home business...hence why we still aren't paying tax. The choice is yours....do you want to pay tax or not? Those that simply say they don't want to I help them get to where they aren't, it's simple tax planning and well within the law and codes!

As to the op's original question: Yes, you are under the taxable earnings during that pay period to have anything withheld. Tax withholding is exponential, the more you make the higher % is withheld, you are under the cutoff to begin withholding IN THAT PAY PERIOD. I can't remember exactly, but it's somewhere around 8-10/hr pay where if you are full time and get a $1 raise or so your take home doesn't go up more than a couple bucks, sucks! In this case I would increase the w4 withholding number.

[cuate01221]

Thanks for all the advice, I get paid weekly, but, I only work every other week. The check pretty much goes Thursday, Friday, Monday Tuesday, Wednesday. Then Friday we get paid.

I am only working bi-weekly until summer vacation comes up, then I will begin working every week. It's kinda complicated.

[HondaB18]

you should be taxed regardless if you were making 100 or 100k. looks like it is an under the table thing, might want to make sure with your employer

[cuate01221]

you should be taxed regardless if you were making 100 or 100k. looks like it is an under the table thing, might want to make sure with your employer

It's definitely not under the table. I am working at this shop as a student of my school. Instead of going to my auto body shop in school, I go out and get experience.

[mtnbikaah]

I worked a job one summer that I had them NOT take out any money for taxes. (I worked there the previous summer and when it came to tax season I got ALL of my taxes back because I didn't make enough money). I ended up making more money that summer and ended up owing a bunch of money come tax season.

If you aren't having the money taken out when you earn the money you will pay the government come April 15th.

Some people opt to do it that way so the government doesn't get a free use of that money from them. (otherwise that money could be in savings or investments MAKING money)

-2 cents.

[Mista Juice]

you should be taxed regardless if you were making 100 or 100k. looks like it is an under the table thing, might want to make sure with your employer

umm.. no..

Guidelines for MOST people

Filing Status 2011 Must file if gross income is at least

Single

Under 65 $9,500
65 or older $10,950
__________________________________________________ ______________

Married Filing Jointly
Both spouses under 65 $19,000

One spouse 65 or older $20,150
Both Spouses 65 or older $21,300
__________________________________________________ ______________

Married filing separately $3,700
__________________________________________________ ______________

Head of Household
Under 65 $12.200

65 or older $13,650

__________________________________________________ _______________

Qualifying Widow(er)

Under 65 $15,300

65 or older $16,450

[HondaB18]

umm.. no..

turbotax site

filing and being taxed are 2 different things....

http://www.money-zine.com/Financial-...ome-Tax-Rates/

http://www.investinginbonds.com/lear...?catid=3&id=61

http://www.tax-brackets.org/massachusettstaxtable

http://www.tax-rates.org/Massachusetts/income-tax

http://swz.salary.com/salarywizard/l...a.html#taxrate

https://wfb.dor.state.ma.us/DORCommo...taxtables.aspx

ask me what i know about mass tax, i really hope you do

[toycar]

I think the way you get taxed varies a bit from the employers interpretation of the actual tax law.


For example, if you earn less than $600 you dont have to claim it or pay taxes on it.


Usually an employer takes taxes out of every penny you make. I have seen it go the other way though. I prepare taxes for people sometimes and frequently if your paycheck is next to nothing, they dont really take taxes out.


Waitresses experience this all the time. In NE they make 2.13/hour plus tips. I have seen 0 taxes withheld on a W2 before, and the person made more then $600. Its rare, but it can happen.

Also, if you are I9'd, you are responsible for your own taxes and your employer is technically "contracting" your labor. Meaning they are not liable for you, and you are liable for your taxes getting paid. Again, its rare but there are reasonable explanations for what happened to you.


I wouldn't worry about it.

Yes, single/0 is the highest tax code.