so I'm super confused and don't understand a single thing one bit at all. May I suggest you talk to your parents ... they should be able to help you understand.
- what exactly is this $12,000 deduction and how does this deduction work? why is the first 12,000 'tax free'? What do you mean by 12,000 deduction? This is the amount of the standard deduction for a single person on an income tax form .... everyone gets a standard deduction ... that is how a tax return works ... look at a form 1040 to see how this happens.
- Don't you still get taxed when making less than 12,000? If you make less than $12K in wages then the deduction totally negates your income so your taxable income is zero thus your tax bill is zero.
- Also, do i file taxes with my parents or not? Do i list myself as a dependent or file my own taxes separately? You will still be claimed as a dependent on your parents return however you will also file your own return (and NOT claim yourself) to get any refund of excess federal or state withholdings.
- Also i plan to use turbotax and they don't. Is this problematic? Can I file taxes by using turbo tax on my own and they use a CPA? This is not an issue ... but again discuss this with them first ... their accountant may file your return for you when they complete the parent's return ... I know I do all the dependent returns for my client's kids and at no charge.
- if i use turbotax and they don't do i have to wait for them to officially file taxes and do it at the same time or can i file my taxes the moment my w2 comes in from the employer through turbotax? im trying to get my refund as soon as possible, you know? Although you do not need to wait for them to file before you can file you MUST MUST MUST indicate you are being claimed as a dependent on your return ... this is NOT NOT NOT an option. If you do make this mistake (and file before your parents) not only will your parent's not be able to efile but you will also need to amend your return which causes a headache for all involved. This will not make anyone happy. PLEASE talk to your parents first so you understand what is happening.
ALSO ... no matter what the buzz is at the school ... you are NOT eligible for any of the education credit ... that is a myth so do not get sucked into that scam.
