Thursday, June 17, 2010

Tax question...please read carefully?

very long...i am 21 and never filed taxes. i have 2 jobs both $12000 or less/year. i had a baby born in july 07. i have never filed before because i was claimed by my parents on their tax return and 1 job was under the table. i am head of household. i know you can file up to 3 years back. the job that was under the table has decided to file taxes this year. can i get a return from the last 3 years there? do i still need my W-2s from the last 3 years (i don%26#039;t have them)? can i still claim my child even though he wasn%26#039;t born before june? do i get child tax credit? can i claim my college tuition as a deduction? i know nothing about taxes and am trying to determine whether i should go to a tax agency or just buy turbo tax. i want the most refund, but am not keen on paying hundreds in for one. anybody have any advice about all of this? i will be filing for the first time for BOTH jobs. i want to limit confusion on my part and keep my sanity during this. thanks for answering!



Tax question...please read carefully?

You can either go to your post office or go on line to irs.gov and get instructions %26amp; forms for everything you need to do your taxes. As far as filing back for 3 years you would need your W-2%26#039;s since copies must be sent with your return. If you go on line there are also many places where the irs will help you figure out if you qualify for certain deductions or breaks. You should be able to claim the Child Tax Credit as long as you owe taxes. It is actually taken from the tax amount you owe. If you can take it it is around $1000 per child. Another thing you need to consider is the Earned Income Credit. This will actually pay you over and above any money you paid in for taxes. There are also links on irs.gov for free tax preparation and e-filing for lower income individuals. I would try the free services before I put any money out for a tax preparer or turbo tax. Many people just don%26#039;t want to take the time to figure it all out but if you go slowly step by step I have found it to be understandable. Good luck to you!



Tax question...please read carefully?

This time of year the tax preparers start offering pretty good deals to drive the end of the season. I would check with them and see what deals they are offering but having a professional do them is always better than answering 1000 questions in turbo tax and often times claiming things you shouldn%26#039;t



Tax question...please read carefully?

Your income is low enough that the IRS will help you fill out the tax returns for free if you go in person.



1. As a dependent, as soon as you made more than $5000, you generally had a filing requirement.



2. Being paid under the table was no excuse. Those kinds of jobs end up having you owe 15-30% of whatever you were paid to pay the taxes.



Tax question...please read carefully?

The cheapest way is to do Turbo Tax online. I believe it is $29.00 for online. Your current tax situation (2007) is very easy to do so don%26#039;t go somewhere and have them do it. You can claim your child whenever he/she was born in the year. You can file and are required to file even though you didn%26#039;t get a W-2. Did you save you paystubs? There are two ways to claim your tuition and Turbo Tax will explain it.



Don%26#039;t worry.



Tax question...please read carefully?

If your parents could claim you for the earlier years, you can%26#039;t claim yourself or get an education credit, or claim your baby - you can%26#039;t claim him anyway for those years, he wasn%26#039;t born yet.



But you can, and might legally be required to, go back and file for the income you had. Yes you%26#039;d need your W-2%26#039;s, and records of what you made on the under the table job. It%26#039;s likely that for the back years, you will owe rather than get any extra refund, but either is possible.



Turbotax is different for every year, so you wouldn%26#039;t be able to file the back years unless you had the TT version from those years.

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