Originally Posted By LuLu I need to estimate my daughter's income tax for the FAFSA (college aid paperwork), which I'm trying to submit ASAP. It asks if she'll be filing this year and how much tax she'll pay. I did a bit of research and gather that she's earned less than the amount that requires you file ($5350). But she can file and all the income tax that's been withheld will be refunded - is that correct? So in effect her income tax for 2007 should be $0? Thanks in advance!
Originally Posted By Mr X If she paid, she should definitely apply for the refund. If you are counting her as a dependent, though, it gets more complicated (so I don't know the specifics). Why not get the money back though, if she's entitled? A few hours of paperwork for a few hundred bucks is worth it, I would say. ??
Originally Posted By LuLu It's definitely worth it, I'm just surprised that I wasn't aware she's entitled to get the money back, and wanted to verify before I fill out the FAFSA saying she's not paying any income tax for 2007!
Originally Posted By Mrs ElderP Ahh, the FAFSA, this is the first time in 12 years I won't be submitting one, YEA!! (First for myself, then for hubby including the MBA, it's been a long haul!) LuLu, turbotax basic on the web is free. (The basic is for people who don't itimize.) Use it to file your daughters taxes, and then you will know for sure that they are right. The FAFSA forms will even tell you, look on line X of the basic 1040 form, yours will most likely say 0, but you'll know for sure. www.turbotax.com
Originally Posted By DVC_dad Well there is a sort of timing issue here. If you have not yet filed the return, then you don't know how much she will get back, therefore, her taxes that have been withhed in 2007, are whatever her last paystub shows the year to date amount to be. However, once your return is filed, you then at that time will know that her tax will be refunded to her, maker her have a net of zero taxes paid. So, the first option is very agressive, and I'm not that sure I'd go that route, but you could. The second option is more honest. The IRS does not care in the case you name above, becuase you are going to do what is compliant with the tax law. I have no idea what the FAFSA thinks about how you play it. More than likely, it doesn't matter in the big picture. The amount of money you are discussing is very small by comparission to say the 36 year old applying for Financial Aid that made 239,000 last year if you know what I mean. However something to think about, I think she only gets Federal and State Withholding back. There is Social Security and Medicare that she paid in that I don't think she or anyone else ever gets back. Taxes are never truly zero.
Originally Posted By Mrs ElderP I would add that the FAFSA is the reason my taxes have been done by March 2nd for the past 12 years. Now, I'm just in the habit. As soon as the first W-2 is here I get started, and I'm usually done with in the first week of Feb. And yep, I've already started, but w/out hubby's W-2 I'm not yet done.
Originally Posted By peeaanuut I am one of the get it done quickly people too. Never filled out a FAFSA though. I probably should have at some point. As a side note, my california state tax was deposited in my account last night. I filed last friday afternoon. I have never seen it that fast before.
Originally Posted By LuLu DVC_dad, it also occurred to me that it might be to her benefit to state the amount of tax she has paid at this point. I really don't know what her refund will be, tho I can't believe I wasn't aware that she'd get one, otherwise I'd have had her file in 2006 too! I think she can still file a late return for that. I'm pretty sure the gov't keeps the SS & medicare, but that part isn't considered "income tax." You're eight, the amount is no biggie, but I don't want to mess with the gov't! Mrs EP, thanks for the turbotax tip, we'll use that! I do want to get this FAFSA in right away tho, as I understand sooner gives you better chance for $$.
Originally Posted By SuperDry <<< There is Social Security and Medicare that she paid in that I don't think she or anyone else ever gets back. Taxes are never truly zero. >>> Obviously not applicable in this case, but there is a situation where you get some Social Security withholding back (but not Medicare): you have two or more jobs and your combined gross income from the jobs exceeds the social security ceiling for that year (which is $102,000 for 2008). No employer can count the other jobs and can only stop withholding SS when that particular job exceeds $102,000 for the year. But the IRS will give you the excess money back when you file your taxes.
Originally Posted By JohnS1 Since we're asking tax questions, does anybody know what the deadline is for companies to send independent contractors their 1099s? I thought they had until the end of January, but I still have some outstanding - and want to get going on my taxes!!!
Originally Posted By LuLu I believe 1/31 is the deadline for mailing them (as long as you received over $600). Hopefully they'll arrive soon!
Originally Posted By amazedncal2 1/31 is the deadline for 1099's and the company has until Feb 28 to mail in the 1096 All too often companies don't know about or forget about the forms. I'd phone the company today and remind them
