I'm a current employee of a retail store. My earning wage is 8.50 per hour and I make a range of 30hrs Bi-weekly.
Last year my income was under $2,000. This year I expect to make the same amount while I was out for 6 month.
I was put as exempt from taxes so they don't take federal witholding from my check.
My question is; what is the total amount a person can earn each year to be exempt from taxer.
I'm dependent 20 years old. attending college.
For 2009 federal taxes for dependents:
You are not exempt if you have more than $5700 in total income (earned and unearned, combined).
You are not exempt if you have more than $300 in unearned income and have more than $950 in total income (earned and unearned, combined).
You are exempt if you have $5700 or less in total income (earned and unearned, combined) and have $300 or less in unearned income.
You are exempt if you have $950 or less in total income (earned and unearned, combined).
Earned income is income from work.
Unearned income is dividends, interest, unemployment compensation, etc.
Note: Different figures may apply for New York state taxes.
Note: Larger figures would apply for federal taxes if you were not a dependent.
If you only earn around $2000, you're OK - as a dependent you could earn $5700 and not owe federal income tax.