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I just did my sons taxes and thought his refund was a bit low and wondered how other students were faring. He made about $8200 paid $630 in fed and is getting back about 300. I claim him as a dependent so he gets no tuition deduction. I figured he would get more but perhaps he made more than I did when I went to school and he went over the income threshold. I used a program to do it so i doubt its wrong but it just didnt feel right.
When I was in that same situation, my parents claimed me as well, a couple of years back I got even less than $300 back and I made right around $8,000.
That's about right. Since you claim him as a dependent (which you should) he doesn't get the standard deduction others get.
Make sure YOU take the tuition credit - and in many cases it's doubled this year since most of Iowa is in a disaster relief area.
He only had to pay $360 in federal income tax? I pay more than that every week!
Im sure he would gladly trade you paychecks any week that you'd like.Quote:
Originally Posted by brianhos
Quote:
Originally Posted by CYKID
This is why we need a flat tax, no deductions. A calculator is all you need at the end of the year.
Income x .whatever = how much you owe.
Keep the withholding though. A lot of people aren't smart enough to set money aside for paying their taxes a year later.Quote:
Originally Posted by brianhos
Yeah, but people would pay a lot more attention to spending if they had to write a check for $20k in April. Suddenly those earthparks are not such a great idea.Quote:
Originally Posted by d4nim4l
You'd think that but a lot of people don't pay attention to having to pay bills each month. Have to keep the withholding.Quote:
Originally Posted by brianhos
Unless there is some magical way to do something to the people who don't pay up and still collect their money.
yes i checked with an accountant friend and he said its probably right. 0 tax on first $5500(standard deduct) and about ten percent on the rest so he actually made 8700 and owes 328 in tax . I must have always made under the standard deduct when i was a student. Tx for your help.
A calculator is all you need if you are taking the standard deduction and dealing with W2 Forms. It isn't rocket science.Quote:
Originally Posted by brianhos
If you think there will be no deductions when implementing a flat tax and applying it to business you are certainly naive and have never ever owned a business.
And if he goes to a college that is located in the disaster area you will be able to deduct his housing costs up to the amount that the school charges for its housing costs.Quote:
Originally Posted by djkent01