Tax refund coming up in a month or so - do we get any medicare / Social Security tax back?
I was an SA at a BB, made around $17k, but I get so much financial aid (I'm poor) that around $12k of that will be taxable (grants used to cover room + board + personal expenses).
Spent around $2k on medical expenses and $1.6k on our student health plan (I know the medical expenses are deductible, not sure about the health insurance).
So I'm looking at $27k in taxable income. I paid $5k in taxes: $3k fed, $1k NY, $1k Medicare/SS.
Tax refund calculators say I should expect to pay $2.5k in taxes. That doesn't include medicare / social security does it? At first I thought it meant I would get like a $2.5k refund since $5k - $2.5k = $2.5k, but if I don't get any social security / medicare taxes back, then I'm looking at $4k - $2.5k = $1.5k..
Thanks for anyone's help in advance.
SS and Medicare are gone forever. No refund. Sorry. Medical is deductible as an itemized deduction, meaning you need to have deductible expenses on schedule A greater than the standard deduction to have any benefit; otherwise the standard deduction is more beneficial. In other words, throw all of your income on the 2010 1040, choose the standard deduction, claim an exemption for yourself if no one else is claiming you as a dependent, do the math, your 2011 tax / refund should be roughly what you calculate off the 2010 forms. good luck.
Yeah, you don't get that money back. Bear in mind that health expenses have a % AGI (net income before deductions) floor and are an itemized deduction. I think the floor is about 7% and isn't worth taking unless your itemized deductions are greater than $5K, so few people qualify for it unless something disastrous happens.
With $27K of net income and no itemized deductions, your federal tax for this year will probably work out to about $2300 if you can claim yourself as a dependant (otherwise about $3050) just off the top of my head. I think NY tax works out to about 5% at the lower brackets so you owe them ~1400 before your standard deduction. (If you can claim yourself as a dependant, knock off $7500 in tax for the standard deduction and you are down to ~105-1100 in state tax liability).
I'm guessing you had $0 liability for tuition (including money you borrowed to pay for it), but if your parents aren't claiming any sort of credits for paying for your books our tuition, you can also deduct the cost of your required books if those weren't covered by your school. So save that receipt or credit card statement. Also, you may be able to claim a for-AGI deduction for qualified moving expenses (EG Airfare) to work this summer if your employer did not cover it, although I'm a little fuzzy on the exact requirements. So please read up on the instructions before claiming that deduction.
For most practical purposes with the IRS, being able to claim yourself as a dependant means your parents aren't claiming you.
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