okay so im new to this tax thing
i know i pay taxes....like when i go shopping for food or clothing or anything.
so....i pay taxes and then i get some back or something like that.
but how does the whole process work?
when and how does the whole tax thing start?

1/18/2007 5:50:07 PM

Quote :

"Age : 20"

Have you not had to file / have you not had a job or any paid income since you were 16? Anyways, what you are asking is EXTREMELY broad ... people devote entire careers trying to figure that sort of stuff out. Start with Google, the Library, the IRS, NC Department of Revenue, and your parents, then get back with us.

1/18/2007 5:55:16 PM

see what you posted at the end of your thread title... "H&R Block" - that's what you need to do; go to them

Seriously, there's a lot to it that you could really learn from reading articles (and some on message boards). Pick up turbo tax and get the basics...

1/18/2007 5:56:19 PM

it sounds like you want a refund on sales tax

how are you this oblivious

you are a mechanical engineer to boot

1/18/2007 6:01:31 PM

well i havent had to worry about my financial situations...
as much as i would like to be independent, im not just yet.
i never had to file anything like taxes and shit like that

1/18/2007 6:05:10 PM

this is my first year filing them too, so don't feel bad. i worked during the summer, but i was always exempted because of school

1/18/2007 6:12:34 PM

To e-file a standard deduction tax return, go to h&r block.com or whatever site you wish to use. Go thru their tutorial and fill in everything. (edit: they give you all your money if you allow them to put it on their hrblock credit card {basically a prepaid credit card}, but you can transfer the funds to your account for free) It's fairly self explanatory...an engineering major should be able to do this.

Note: This standard deduction is only if you made less than $5,150 last year, and assuming you don't have anything else to "write off." Anything over $5,150, you will pay taxes on.

Someone correct me if I'm wrong.

[Edited on January 18, 2007 at 6:16 PM. Reason : .]

1/18/2007 6:15:00 PM

^^huh? school doesn't exempt you, how much you make is what is the deciding factor

Quote :

"okay so im new to this tax thing i know i pay taxes....like when i go shopping for food or clothing or anything. so....i pay taxes and then i get some back or something like that. but how does the whole process work? when and how does the whole tax thing start?"

I hope you aren't serious? You don't get sales tax back. And you only get some of you income taxes back if you pay too much. It's not like they are just giving you free money . . . it is just that you paid them too much and essentially gave the gov't an interest free loan.

[Edited on January 18, 2007 at 7:02 PM. Reason : ]

1/18/2007 6:55:43 PM

i just mail all my shit to one of my family's accountants and let them take care of it. I haven't a clue how it's done.

1/18/2007 6:59:00 PM

well i've just always written "exempt" on there and its been done. i guess i didn't make enough, just did what my mom told me to do

1/18/2007 7:05:13 PM

http://www.irs.gov/individuals/article/0,,id=96623,00.html

Follow the questions and it will tell you whether you need to or not. It's 5th grade math, not rocket science to do your taxes as long as you don't have capital gains or have your own business.

^ I'm assuming you are single and your parents claim you as a dependent. If so, you are only exempt if you earned less than $5,150. Which would indicate that you don't work. Much.

[Edited on January 18, 2007 at 8:22 PM. Reason : ^]

1/18/2007 8:18:47 PM

Your tax return is for income tax, not sales tax. The income taxes taken out of your paycheck are an estimate. You have to calculate your actual tax each year. You get credits/deductions for things like tuition and student loan interest. Your refund will be the difference between what you paid and what you actually owe. Keep in mind, you may owe them.

Here's what you do:

1.) Collect your tax documents. You'll need W2s from each employer, you'll need a 1098-T from NCSU showing how much tuition you paid, you'll need a form from student loan lenders saying how much interest you paid, and you'll need forms from any interest earning accounts you hold.

2.) Go here, http://www.irs.gov/efile/article/0,,id=118986,00.html, and choose a service to file with. Generally H&R Block or TurboTax are the most well known.

3.) Follow directions.

[Edited on January 18, 2007 at 8:31 PM. Reason : ?]

1/18/2007 8:27:54 PM

Quote :

"I'm assuming you are single and your parents claim you as a dependent. If so, you are only exempt if you earned less than $5,150. Which would indicate that you don't work. Much. "

that was up to 2006. i was a lifeguard over the summer while in school, so yeah i guess thats it

1/18/2007 9:26:57 PM

H&R block wants $9 to efile, lots of places will do it for free

1/18/2007 11:28:40 PM

^ I used HR Block last year...they do it for free, but you have to get your return on their hrblock card (essentially a prepaid credit card) and then just transfer the money from the credit card to your account (free!!!!).

1/19/2007 2:40:45 PM

SALES TAX??????!!!!!





*hand on head*

1/19/2007 3:16:00 PM

Quote :

"N'awlins, LOOzeeAna"

1/19/2007 4:22:34 PM

^ yea? and...?

WHO DAT! WHO DAT SAYING THEY GON BEAT THE SAINTS!

1/19/2007 5:57:11 PM

Quote :

"Toledo, OH"

1/19/2007 5:57:37 PM

so basically i posted this so i can find out what kind of tax information i need from my parents to file for financial aids on fafsa for next school year. they have a small business and im a dependent under them so i guess i need their "tax information" but i dunno the specifics

1/19/2007 5:59:06 PM

http://www.irs.gov/pub/irs-pdf/f1040ez.pdf?portlet=3

1/19/2007 6:10:22 PM

Quote :

"^ I used HR Block last year"

well this year when i used it they wanted $9 for efile, i went to another place on the list and got it for free

1/19/2007 6:49:21 PM

Some of you really need to know what you are talking about before you give tax advice. You could really get people into trouble.

First, since your parents are still claiming you they will be able to get a credit or a deduction for the tuition expenses and cost of your books (if they are bought from the university bookstore). It does not matter if this money is a federal loan (your parents will still get the benefits since they claim you as a dependent).

Second, when you are ready to file please make sure that you do not claim yourself. If you claim yourself and e-file your return you will put your parents into a tough spot. There return will get rejected and they will have to file a paper return proving that you are in fact their dependent. Your return would also get adjusted at that point and you would owe penalties and interest.

1/19/2007 6:49:34 PM

I have used this site for the past 5 years

http://www.completetax.com/CTindex.asp?welcome=GY1318083

I get it back fast and they store all your shit so you dont have to do much except change the numbers

1/20/2007 11:18:09 AM

it really sounds like you haven't even worked before, so you haven't paid any taxes. therefore you shouldn't have to file anything.

1/20/2007 12:13:46 PM

Quote :

"well i havent had to worry about my financial situations... as much as i would like to be independent, im not just yet. i never had to file anything like taxes and shit like that"

Then just continue giving any W-2's you may receive, etc. to your parents and allow them to continue taking care of it. That's what I do... especially if I owe anything

Seriously though, if you have no idea what you're doing... don't try to pan it out yourself.

1/22/2007 12:36:34 AM

next year I will become independent!!!!

1/22/2007 7:34:13 AM

Full time students a get ALL of their federal back generally. If you don't know what you're doing... get someone who DOES to do it.

Most people think H&R is stupid. I can do my own taxes. Well, lets see in 2005 did you know that if you put in $450 to the US government you could get a $1400 IRA? That's a free $950 to use toward a house down payment or emergency medical.

It's things like this most people don't realize about doing their taxes. I'm lucky to have a tax accountant as a mother. I've even been audited in 2002 and everything balanced out perfectly.

1/22/2007 7:47:24 AM

Quote :

"Well, lets see in 2005 did you know that if you put in $450 to the US government you could get a $1400 IRA?"

Is that still available or 2005 thing only?

1/22/2007 8:17:25 AM

Nope. I couldn't get it for 2006. I asked.

1/22/2007 8:19:06 AM

Quote :

"Most people think H&R is stupid. I can do my own taxes. Well, lets see in 2005 did you know that if you put in $450 to the US government you could get a $1400 IRA? That's a free $950 to use toward a house down payment or emergency medical. "

Please explain what you are talking about. I have been doing taxes for a while and have never heard of anything like this. I know if you would of contributed to a qualified IRA you could get a larger refund due to the IRA deduction. I also know that first time home buyers dont have to pay the 10% penalty on a distribution from an IRA but they still have to pay income tax on it.

1/22/2007 12:18:21 PM

Quote :

"Full time students a get ALL of their federal back generally. If you don't know what you're doing... get someone who DOES to do it."

I always made too much during the summer to get back all of my taxes. Oh well.

1/22/2007 12:30:15 PM

^^ I'd like to see the actual details too

1/22/2007 1:18:22 PM

Quote :

"you put in $450 to the US government "

what does that even mean?

1/22/2007 1:20:20 PM

maybe you have to bribe the right people

1/22/2007 1:35:45 PM

My God this is a scary thread

1/22/2007 2:01:24 PM

Quote :

"My God this is a scary thread"

You people giving "advice" must stop.

1/22/2007 2:05:27 PM

*laughs* yeah i guess i could have been a bit more vague.

The Federal Government at the time was offering a bonus toward contribution to an IRA of up to ~$1000. I'm not sure of how the scale itself worked (I'll ask the mom) but if you contributed $450 (correction $399) of your TAX REFUND into it they would add $1000.

This was offered on 2004 refunds (done in 2005). My total IRA was $1450 (correction $1435) and I moved it from H&R block to State Employees. H&R charged about $40 worth of bullshit fees but their rates sucked ass.

It was called an EXPRESS IRA, but in actuality was a traditional IRA brokered through H&R block.

This is per the letter that sent me about it at the end of March 2005 (I filed in Feb). It's like a tax break or something. AKA I don't understand except that the result was almost $1000 more in refund than I would have gotten normally.

I'll try to find more info but no promises.

1/22/2007 2:17:00 PM

Quote :

"Full time students a get ALL of their federal back generally."

most full time students dont pay their own tuition, which is a big part of that

1/22/2007 2:24:38 PM

Quote :

"It was called an EXPRESS IRA, but in actuality was a traditional IRA brokered through H&R block. "

The express IRA was the retirement account offered through H&R Block, in no way backed by the federal government. Are you sure that your mom didnt enroll in the express IRA through block, maximize your IRA deduction (at $3000), thus giving you an extra $1000 refund (roughly).

You may have knowledge of the express IRA because the New York State Attorney General sued H&R Block for deception in their IRA practices, including misrepresentation of fees and related interest rates.

In addition there were no federal tax breaks available for IRAs that are no longer available.

1/22/2007 2:55:35 PM