Hi,
I am now a student and my parents do not claim me on their taxes as dependent, so I am filling my tax return as exempt cause I earned very little. Now I am making more and will need to change my status to NON-exempt. Will I owe taxes and how much?
Tx
You will find out how much you owe on your taxes when you compute your taxes in April. Here is a general idea:
Take what you make in the calendar year, that is your
annual income.
Then, deduct your personal exemption and standard deduction, and you get your
taxable income.
If your taxable income is very low, you may not owe anything.
If your parents qualify to claim you as a dependent, you cannot legally claim yourself, even if they choose to not take your dependency exemption for some reason. But that has nothing to do with whether you are exempt or not.
Exempt means that you had no tax liability last year (this also means that you probably got all of your withheld federal tax back) and you fully expect to be in the same status this year.
As a student and therefore somebody who probably cannot claim his own exemption, you would have to make
less than $5450 in 2008. So you should change to not being exempt and you can expect to owe taxes when you file in April.
