Taxes.....

[GACMAN]

so my son is a college student who worked a couple of different jobs last year...2 of them he was considered an employee and they sent him W-2's...the 3rd job he was considered a contract employee so he got a 1099-MISC. His standard deduction is $6300.00 but he made 7335.00 for the year. He paid $50.00 in taxes plus medicare and SS.....anyway his tax liability to the Feds is $506.00...so because he worked 3 jobs and made more then his tax liability of $6300.00 he now has to pay taxes back to the feds....I struggle with this for a kid that is full time college student who is working his a$$ off to do the right thing and is penalized for it.....plus stinken turbo tax is going to charge me $40 to file because of the stupid 1099-MISC form......any thoughts ideas or suggestions....I tried beating the wife but she threw the double hex on me and I have ice on my back now so looking for a different way of dealing with this!!!

 

[Blue2010]

Based on this breakdown, something sounds off.

See this 2016 Tax Table -- if you do the math (income minus standard deduction), he'd be left with $1035 in taxable income. Assuming he is single, that would be a tax owed of $104 (minus the $50 he paid, leaving roughly $54 due).

Also -- can he take the American Opportunity Credit -- you should have received a tuition statement from his college that you enter and the tax program "should" automatically apply this credit if it's applicable. Usually, a student can take this credit for four years.

Hope this helps.

 

[Blue2010]

Also -- make sure you're not being penalized for the Obamacare BS. You should have gotten a Form 1095 from whatever health provider he's covered under.

 

[GACMAN]

Based on this breakdown, something sounds off.

See this 2016 Tax Table -- if you do the math (income minus standard deduction), he'd be left with $1035 in taxable income. Assuming he is single, that would be a tax owed of $104 (minus the $50 he paid, leaving roughly $54 due).

Also -- can he take the American Opportunity Credit -- you should have received a tuition statement from his college that you enter and the tax program "should" automatically apply this credit if it's applicable. Usually, a student can take this credit for four years.

Hope this helps.

Hey @Blue2010 I knew something was not right but was so pissed that I didn't see it...I cleared everything off of Turbo Tax and am going to start again on it tomorrow. I appreciate the feedback.

My son lived with us and we have paid for parts of his college so it made sense for us to take the AOC on our taxes.

We have him covered on the insurance so I don't think that impacted him.

I appreciate the assist!!!

 

[Blue2010]

Hey @Blue2010 I knew something was not right but was so pissed that I didn't see it...I cleared everything off of Turbo Tax and am going to start again on it tomorrow. I appreciate the feedback.

My son lived with us and we have paid for parts of his college so it made sense for us to take the AOC on our taxes.

We have him covered on the insurance so I don't think that impacted him.

I appreciate the assist!!!

Anytime man... Depending on his age, he could be eligible for the Earned Income Credit too.

 

[GACMAN]

I did some more research and the problem lies with that 1099-MISC form. Apparently the big portion of the taxes due are SS and Medicare taxes that were not paid related to the 1099 form. Apparently they do not come into play in relationship with the $6300 exemption.

 

[nctransplant]

He needs to quit working and get some baby mama's. He will get money back then.

 

[JuleZ '02 HEEL]

I did some more research and the problem lies with that 1099-MISC form. Apparently the big portion of the taxes due are SS and Medicare taxes that were not paid related to the 1099 form. Apparently they do not come into play in relationship with the $6300 exemption.

Yeah, you have to be careful getting paid as a contractor (1099); no taxes are getting paid so you have to set aside a hefty chunk of it (I usually moved 30% to a separate money market account and hoped to have a little left over), plus it makes the filing process more complicated and expensive. Glad to not have to deal with 1099s any more, at least for now.

 

[GACMAN]

Yeah, you have to be careful getting paid as a contractor (1099); no taxes are getting paid so you have to set aside a hefty chunk of it (I usually moved 30% to a separate money market account and hoped to have a little left over), plus it makes the filing process more complicated and expensive. Glad to not have to deal with 1099s any more, at least for now.

Did not realize he was getting paid this way until I started looking at his taxes...lesson learned! I think the tax liability is 15.5% for him....pay them and move on I guess!