So I was an analyst last summer at a bank in New York and got the typical 70k prorated and the consensus seemed to be that analysts get a couple grand in tax rebates. I know my friend that I worked with got around 2k back.
I file as a dependent of my parents and my dad has always done my taxes. He is under the impression that I get taxed at his rate and that I won't get any money back because he has a pretty good salary. Does your parents salary affect how much you get back in rebates if you file as a dependent?
I have no experience with taxes at all - is he right?
Other relevant info: I have no other income during the year and my parents live in New York and my internship was there.
im no tax expert but i dont think it matters what your dad made. the tax rate you get taxed at is only on the money YOU made, and those taxes were taken under the assumption that you would be making 70k, so your return should be sizable since you made nowhere near that. dont forget to take as many deductions as you can (ie suits/ties/shirts you got for work, any travel expenses, etc) you can probably get it close to 3k if you deduct a bunch of shit
Don't file as a dependent. You will get almost everything you paid in taxes if you don't (I got back $3500).
Your dad is incorrect. Let's say you made 15k. Then you get taxed based off of that 15k that you made. You would file as single, dependent (unless your dad didn't claim you as a dependent, but if hes providing tuition money and etc he would have claimed you already). So your taxable income is 15000 - 5800 = 9200. The 10% tax bracket is taxable income 0-8350, and the 15% bracket is 8351-33950, so you owe 85000.10 + 7000.15 = 955 in federal tax. Anything withheld over that is returned to you as a tax refund. You should also get a nice check from your state tax refund also.
Dont itemize your deductions unless they're over the standard deduction of $5800, which I doubt is true for a SA.
Thank you for your comments
If you've made over $1,900 in investment income (Interest, Dividends, or Capital Gains) and claimed as a dependent, you will be taxed at your father's rate. In which case, since he makes a good amount of money, I'm sure it's a very high tax rate.
If you file independently, yes, you will most likely get a decent tax refund. Assuming you only got the prorated 70k...
Source: I'm a tax accountant.
Ouch.
I hated life in tax.
I had about 3200 taken out in taxes and got 2000 back. I file as independent...did I get screwed? NY btw
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