taxes for teens jennifer allen allen, gibbs & houlik, lc june 19, 2013
TRANSCRIPT
Taxes for Teens
Jennifer Allen
Allen, Gibbs & Houlik, LC
June 19, 2013
Topics Students Need to Know
• Filing status• Independent vs. dependent• How do I fill out a W-4?• Do I have to file?• How do I file?• What documents do I need to file?• Deductions vs. exemptions
Filing Status
• Single• Married filing jointly• Married filing separately• Head of household
• (unmarried, keep up a home & qualified person lives with you more than 1/2 of the year)
Independent vs. Dependent
• Dependent: Someone else provides more than 50% of your support (rent, utilities, food, etc)
• Differs from financial aid for college dependent (easier to be independent for tax purposes than for financial-aid purposes)
Completing a W-4
Do I Have to File?
• If you are dependent, earned income over $6,100 or unearned income over $1,000
• If you are independent, as single $10,000 or married filing joint $20,000 or head of household $12,850
• If you receive tips and your employer did not withhold Social Security & Medicare tax
• Net earnings from self-employment of at least $400 (lawn-mowing business, babysitting, etc.)
• These are the most common but there could be more reasons that you must file.
Should I File Even if I Don’t Have To?
• Earned Income credit ($487-$6,044 credit depending on number of kids & income)• $14,340-19,680 with no kids• $46,227 single/$51,567 MFJ with 3 kids
• Additional child tax credit ($1,000/child even if no liability)
• American Opportunity credit ($1,000 is refundable even if no liability)
• Any federal or state tax withheld
How Do I File?
• Federal• www.irs.gov has freefile for income less than
$57,000
• Kansas• www.kansas.gov/webfile for state returns for
income less than $1,000,000
• Tax professional
What Documents Do I Need to File?
• W2s and 1099s• Social Security number for you (and
dependents)• Tuition Statements (Form 1098-T) if you
have higher education expenses• Student Loan interest (Form 1098-E)
Deductions vs. Exemptions
Personal exemptions are $3,900/person.
Standard deductions are – $6,100 for single/married filing separate– $12,200 married filing joint– $8,950 head of household or – $1,000 or earned income plus $350
dependent
Deductions, continued
Itemized deductions• Uninsured medical and dental expenses (greater
than 10% of adjusted gross income)• Greater of state income taxes or sales tax paid• Interest on primary residence• Taxes on primary residence • Taxes on personal property (car, boat, etc.)• Charity contributions• Unreimbursed employee business expenses, tax
prep fee, investment fees, safety deposit fees (greater than 2% of adjusted gross income)
