My 16 year old worked and received a w-2 from 2016. she had taxes taken out. does she need to file taxes or do I still count her as a dependent on my taxes?

[betterdaz]

if she does file her own taxes do I still count her as a dependent?

[Howard1948 · Accepted solution]

The child may still be a dependent on your return even if that child must file a Federal income tax return.

You do NOT include the earned income of a dependent or anyone else (other than a spouse filing a joint return) on your tax return.  Your dependent needs to determine whether he/she needs to file his/her own return.  Filing requirements are included in IRS Publication 501 pages 3 through 5 which can be found on the IRS website at www.irs.gov.  Even if his/her income is below the filing requirement, he/she may still want to file a return if he/she can get a refund of any Federal/state income taxes that may have been withheld from the paycheck.  If he/she does file to get a refund and “can be claimed as a dependent on someone else’s return”, be sure that box is checked in the Personal Information section of TT.

[Gerson_Lopz]

So I’m 16 years old and I started working at Panera in February and when the whole corona virus thing started they took me out of the schedule and I wasn’t working but I called them and asked if I was still an employee and they said yes but months passed and they never called me so I applied for another job a Popeyes and I started working there about a month ago and I work 49 hours in 2 weeks and got payed 686 dollar (without taxes being talked off) then when I got my money deposited it was 524.48 so they took 161.52 is that a lot because I don’t know. And when I was filling out the w-4 papers I think it there was check is box that said if you have 2 jobs to click yes so they take out less taxes off your pay check. But I didn’t at the time because I was only working at one which was Panera. So I just need advice on what to do so I don’t get in serious trouble.

[VolvoGirl]

At the end of the year you will get a W2 Tax form from each job you had during the year.  They have to send it to you by Jan 31.  You don't have to file a tax return unless you made more than $12,200 or to get back any federal income tax withholding in box 2.  They also take out Social Security and Medicare taxes but you don't get those back.  So I don't know what they took out the 161.52 for.  It is more than the 7.65%  for SS & Medicare.  

If you file a tax return for 2020 you will need to check the box that says someone can claim you as a dependent.  If you have questions then post back in January when you get the W2s.  And don't file until you get the W2s from all the jobs you worked at.

[Gerson_Lopz]

Oh ok I just want to know more so I’m prepared on what to do and have. That was from my second check at the Popeyes job. I have the paper check in hand for the first one and it says that, the gross earnings is YTD 222.60, I don’t know what YTD means. Then is shows at the bottom, OASDI 13.80$ the below that it’s Medicare 3.23$ then below that it is STATE W/H MD 12.96$ Which totals at 29.99$ so my actual check is 192.61$. Idk what any of that is and why they are taking that from my check. And I also work 15.90 hours those 2 weeks because I was training. I was getting paid minimum wage which was 14 an hour. And I just wanted to know what is all those thing that there taking. And better under all of this because I’m pretty new to this.

[VolvoGirl]

YTD just means Year to Date.  So it's the total so far for the year.

OASDI is the 6.2% for Social Security. 222.60 x .062 = 13.80

Medicare is 1.45%  222.60 x .0145 = 3.23

Those are mandatory taxes everyone pays.

Then they also took out state income tax withholding W/H.  It's strange they took out state withholding but not federal withholding.  At the end of the year you can file a state tax return to get that part back as a Refund.

[Gerson_Lopz]

Oh ok il keep that in mind. I also was wondering should i quit my other job a panera even though im not actually working there. I think it would be much better. Because im getting more hours and more pay at popeyes. Just wondering because idk if it will affect anything in a bad way.

[VolvoGirl]

That is up to you to keep the first job.  It won't affect you either way.  It's ok to have 2 or more jobs at the same time.  You pay tax at the end of the year on your total income from all jobs.  You fill out a tax return and it calculates how much tax you owe on your total income.  You won't owe any tax until you make over $12,200 total for the whole year.  Which means the first 12,200 of income is tax free.  Except for the SS and Medicare taxes.  Oh the 12,200 is only for Federal Tax.  State tax is separate.

Then if you have more withholding taken out than the tax you get a refund.  Or you might be short and owe some more.  Hope that helps and is clear.

[Gerson_Lopz]

Yeah and what if i earn more then 12k a year then what would i do, because i feel like if i mess up on something i might get in trouble and i dont want that because im also trying to figure out things about credit scores and loans and all of that. Its funny how you never learn this in school and it the most important things in someone's life. But i wanna start now so when im older i know what to do and wont get bamboozled or tricked in the future.

[VolvoGirl]

Don't worry about it.  You won't get in any trouble or mess up.  Your employer takes withholding out of your pay.  Withholding (W/H) is just an estimated amount of what the tax will be.  That's why you file a tax return each year, to settle up.

 Some people want a lot of withholding taken out of their paychecks so they get a big refund when they file their tax return in April. But you shouldn't count on that.  You actually should try to come out even.  So you don't owe the IRS or state and they don't owe you either.  

[Gerson_Lopz]

Oh ok ok. So you shouldn't be greedy and just keep things normal and simple. What can you do to like help you get less deductible or something like that. I heard that donations to salvation army helps and stuff.

[VolvoGirl]

No that doesn't help so much anymore.  That is what the 12,200 is for.  12,200 is the Standard Deduction for a Single person.  You get to subtract the 12,200 Standard Deduction from your income.  That's why the first 12,200 of income is tax free.  

You get to deduct the Standard Deduction or all your deductions whichever is more.  Itemized deductions are things like Medical, Gifts to Charity, State Income Taxes Paid, Mortgage Interest, Property Taxes, Car Registration fees, etc.  And some deductions like Medical and taxes paid are limited.

[Gerson_Lopz]

Hmm ok. So what should i start doing once im 18 and considered an adult. I was also planning on buying a car like next year when i get my license. What do you mean car registration fees. Can you explain that a little more. Im just curious. 

[VolvoGirl]

Just do what you are doing now and wait until next January when you get the W2s from your employers.  Then fill out a tax return and see how it works.  You file your tax return by April 15 each year.  Then you can see if you're on the right track or make any adjustments to your withholding.

[Gerson_Lopz]

ok so i dont have to worry about anything right now. But when January come my job will give a the w-2 forms and i have to fill them out and do i have to turn it in to them or do i have to go somewhere and turn it in there.