Hey guys, I know you all are a knowledgable bunch, so I'm going to throw this question out. I'm currently working at City-rent-a-car for the summer. I got my first paycheck, and yes I was expecting my pay to be taken by taxes and such. I have friends that have had jobs before. Anyways, I know I won't have to pay income tax on the money I make because it isn't more than 5000. (I think I read that somewhere), but I also heard from my teacher that I can get all the money the government took from my paycheck back..like the social secruity, medicare, federal tax, and such, can I get the money these programs took back as a refund or rebate? I went to search on google but couldn't find a definite answer. Maybe I have the wrong idea, but is there any such rebate or refund like that?If it's only a summer job and you make less than 5000 and you're still a dependent of your parents, is there anything I can do?

THanks for all the help and I'm trying to save the money for a wrx..hopefully...been waiting 2 and a half years!!

 

You can file a W-4 with your employer and tell them you are tax exempt.

 

You know, I thikn the first day of work they had me file the W-4...or some paper, I forget which, and I wrote "exempt" on the bottom and wrote "student", but my paycheck is still getting robbed!!

 

that exempt means only federal income tax is exempt.

the social security/medicare is mandatory, sometimes they group the 2 together, and put it under 1 category,. i think i'm exempt since i only work in the summer, but i didn't put it down. as so. just in case i'm not, then I don't want to get taxed later AFTER i spend my money. I'd rather have them take it out of each check.

and when you do your taxes in april and you end up being exempt, you'll get all your cash back anyways.

 

I thought you were exempt if you made less than 4k a year?

 

My understanding was that you're only exempt from income tax if you make less than $300 or $600, but I may be wrong.

As far as the most common reasons a person may be exempt from having to pay income tax, is if you have enough tax exemptions (owning a home, having children, etc.), and that is mainly what they (The IRS) are referring to on the W4 form. If you claim on your W4 that you're exempt, and you're really not, you may get audited by the IRS.

If you're still not sure about this all, ask a CPA that's a friend of a family member or such, i.e. the type that could give you some free advice

 

You work at city-rent-a-car? I was looking at jobs for the summer and was interviewed there twice but didn't get the job (I think i was asking for more money than they were willing to pay). I'm glad someone on I-club got it though, and I bet it's fun to drive those cars in SF.

Oleg

 

Yeah, when did you apply for it? THey told me they were hiring 2 people and interviewed 4 people. What a coincidence. The job isn't too bad. What sucks is waking up at 6 in the morning for those 7:30 shifits taking the bus. They won't let me drive my car to work even though they have an empty garage!! And they also won't let me drive the nice cars. Oh, and driving around downtown SUCKS ***.

 

you'll never be exempt from SS or Medicare. you'll get federal/city/state back if you make less than a certain amount.

 

ss and medicare never go away. As for the rest you can get it back when you file your taxes next year. only those who are paid under the table are truely exempt. If you make under 11000 a year you are qualified as low income and can get a whole list of tax breaks but only at tax time. ( g/f is an accountant)

 

http://www.irs.gov/newsroom/article/...107670,00.html

Education Credits Can Help at Tax Time


Tax Tip 2005-49, March 10, 2005

Are you footing the costs of higher education for yourself or a dependent for whom you claim an exemption on your tax return? The IRS says that education tax credits can help offset those costs. The Hope Credit and the Lifetime Learning Credit are education credits you may be able to subtract in full from your federal income tax, not just deduct from your taxable income.

The Hope Credit applies only for the first two years of post-secondary education, such as college or vocational school, and it can be worth up to $1,500 per eligible student, per year. It does not apply to graduate and professional-level programs. You're allowed 100 percent of the first $1,000 of qualified tuition and related fees paid during the tax year, plus 50 percent of the next $1,000. Each student must be enrolled at least half-time for at least one academic period beginning during the year.

The Lifetime Learning Credit applies to undergraduate, graduate and professional degree courses, including instruction to acquire or improve job skills. If you qualify, your credit equals 20 percent of the first $10,000 of post-secondary tuition and fees you pay during the year for all eligible students, for a maximum credit of $2,000 per tax return.

You cannot claim both the Hope and Lifetime Learning Credits for the same student in the same year.

To qualify for either credit, you must pay post-secondary tuition and fees for yourself, your spouse or your dependent. The credit may be claimed by the parent or the student, but not by both. However, if the student was claimed as a dependent, the student cannot claim the credit.

These credits are phased out for Modified Adjusted Gross Income over $42,000 ($85,000 for married filing jointly) and eliminated completely for Modified AGI of $52,000 or more ($105,000 for married filing jointly). If the taxpayer is married, the credit may be claimed only on a joint return.

The Hope Credit is not allowed for a student convicted of a felony drug offense.

Use Form 8863 to claim either the Hope or Lifetime Learning Credit.

For more information, see Publication 970, Tax Benefits for Education. Download it or order it by calling the IRS toll free at 1-800-TAX-FORM (1-800-829-3676).

Links:

*
Form 8863, Education Credits http://www.irs.gov/pub/irs-pdf/f8863.pdf
*
Publication 970, Tax Benefits for Higher Education http://www.irs.gov/pub/irs-pdf/p970.pdf
*
Tax Topic 605 http://www.irs.gov/taxtopics/tc605.html

 

Actually, if you work for the government or related sponsored agency, you don't have to pay ss or medicare. When I was working for UC Berkeley during undergrad, they only took out for state and federal. My mom's friend also didn't have to pay either when he worked for the FCC.

As for the OP, you're not getting much of that money back from your job this summer, especially since you're filing as a dependent. Just be glad your parents still support you in most part. They likely saving more money claiming you as a dependent than you can make back during the summer.

 

if you do nat'l guard or reserve you don't have to pay tax.

 

Thanks for all the info guys, it's pretty cleared up by now. Too bad I can't get the SS and medicare stuff back...because thats where most of my money went =(. It will be that much longer until i get a subaru =(.