On Feb 14, 1:11 pm, spacemancw <spacema...[at]yahoo.com> wrote:

- quote -

The kiddie tax does not apply to earned income. If she had unearned
income (dividends, interest, capital gains) in excess of $1,800 then a
kiddie tax is in order. The income can be either included in the
parent's return (form 8814, and thus taxed at the higher rates), or
the child can file the their own return and a special form (form 8615)
that will tax them at their parent's rate. This rule is to prevent
rich people from shifting their income to their kids in order to lower
their tax.

For your case, see standard deduction for dependents

http://www.irs.gov/publications/p17/...blink100033856

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"spacemancw" <spacemancw[at]yahoo.com> wrote in message
news:76db6d5a-fec2-4127-98df-f7d0d3e921fd[at]d36g2000prf.googlegroups.com...
- quote -

Your miscalculation. What the table says is true. However, her $2,768
doesn't mean you look up $2,768 in the table.

- quote -

That would be FRAUD.

- quote -

You're misinterpreting the table. Taxable income isn't gross income for an
individual.

- quote -

You obviously need a tax preparer since you don't seem to understand the
basic workings of our system.


She should file to get a refund of her withholdings. Why she didn't claim
exempt from withholding for that small amount of income is another mystery.

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- quote -

That is correct. She doesn't HAVE TO file. But she may WANT TO.

- quote -

Again, correct. If she chooses to file a tax return (like the 1040-EZ) it
will show that she owes no tax. But she already paid $115 in Federal
withholding. So she gets it back!

The error you made was to take her entire income and look up the tax in the
tax tables. You should have taken her income and subtracted her standard
deduction before you went to the tax tables. For a dependent, the standard
deduction is basically the same as her wages, up to a max of $5,450.

You will want to fill out a Massachusetts form also. I don't the specifics
about Massachusetts, but if it were New York she would get her full $135
back also.

--
Don EA in Upstate NY

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 14, 4:11*pm, spacemancw <spacema...[at]yahoo.com> wrote:
- quote -

If the $2,768 is all her income in 2008 then her tax liability is
zero. Even though she doesn't get a personal exemption, she still can
use the standard deduction for her filing status. Although there are
limits on standard deduction for a dependent, from the facts you
presented, your daughter's standard deduction is at least $2,768.


- quote -

It is NOT your income. It does NOT go on your tax return.
- quote -

She should file a return if he wants a refund of the tax dollars
withheld from her paychecks. I don't know about Massachusetts but she
should get a full refund of federal income taxes withheld.

- quote -

If gross income equals or exceeds the sum of the taxpayer's standard
deduction and personal exemption, the taxpayer must file.

- quote -

gross income.

- quote -


- quote -

You are correct. One can file without paying or pay without filing.
Everyone with salary withholding has paid federal income taxes whether
they file or not. Usually, that withholding does NOT turn out to be
equal to an individual's actual tax liability.

- quote -

Not exactly. If she had exactly $5,450 of wages, she wouldn't owe a
dollar.

- quote -

of the taxes that were withheld from her paychecks.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

My 17 year old daughter has a W2 from the ice cream shop she worked in
last summer?

She earned $2768.
She paid $115 in Federal tax and $135 in Massachusetts state tax.

The federal tax table for $2768 says $276.
She has no other income, winnings, interest, dividends, gifts or
anything.

Does she have to file as single and pay the IRS the difference?
She cannot claim herself as a deduction because I claim her on my 1040
as a dependant.

Or do I include her W2 along with mine, add up boxes number 1 on both
and put the total in line 7 on my 1040?

Or just do nothing with hers?

And a related question then I guess.
Is there a minimum amout of money you can earn before you pay tax?
It wouldn't seem so or perhaps it's $4, because the tax table in the
1040 instruction book shows tax for $5 and up.

Now the instructions say you that if you are a dependant (like my
daughter) and you were not over 65 or blind (again my daughter) and
your earned income was under $5450 (my daughter) then you do not have
to file.

But not filing surely isn't the same thing as not paying tax.
Are they saying that if you earn under $5450 that we don't care if you
only paid $1 or $0 tax, keep it, don't bother us?

So this is where my daughter is, she's a dependant of mine, earned
under $5450 but doesn't have to file even though she has to pay taxes
and apparently didn't pay enough taxes.

Any help and enlightenment would be appreciated.

Thanks.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >