[Kiss Me Deadly]

I just recently filed my taxes (by myself, im 21) on the H&R block website for free.. (my school lets the students know that theyre eligible to file for free ((if they make less than $52K per year)) via a list of participating companies on the irs website..) I chose to do this since I HATE my parents' accountant.. but whatever...

So I chose H&R block since its a reconizable name..

Now, I went thru the interview and entered all the amounts/taxes from my W-2's etc and then did the adjustments/deductions section...

In the end, at the summary my adjusted gross income was less than the amounts I entered from my W-2... is this common due to the deductions? Or should I be worried..

Also, they say im getting a federal refund (small one), but ive never gotten a refund before.. and I owe State taxes, which is common..

thanks, never done this before

[huong]

I'm not a CPA, but I prepare tax returns on the weekend. It is quite common for AGI to be different from what is stated on your W2s. The reason you are getting a refund is because you are getting more witheld from your paycheck (Box 2 of W2s) than is necessary. I can't help you with state taxes b/c I'm not familiar with it.

Edit: Things that reduce your AGI include contributing to an IRA, paying medical expenses, and unreimbursed business expenses.

[Kiss Me Deadly]

^^ oh wow, thanks so much for the advice :)

[Zophie]

be careful that your parents don't claim you as a dependent on their taxes if you are claiming yourself though. You both can't claim you. My parents claimed me all through school.

[Kiss Me Deadly]

I dont think I claimed myself, my parents didnt do their taxes yet, so ill forewarn them :)

Taxes are so redick... i hate them

[thithi]

I have a job thru a corporation, and they usually withhold more taxes throughout the year from my paycheck than necessary. As a result, I usually get a refund. I always itemize, and after my deductions, my AGI is always lower than my actual income.

You're taxed based on your AGI, so if you're eligible to itemize your deductions, definitely do that, as you want your AGI to be as low as possible.

I read somewhere that the average AGI is $62,000, and the average deduction is $19,000. I played it safe this year and my deductions were about $17,000.

[Gracia]

Really a helpful information. Thx dude. I am not a accounting person... but still its a valid info in general

[Kiss Me Deadly]

yeah, I didnt know that the itemized deductions lowered your AGI, so thats what I was wondering about thanks!

[Zophie]

you don't always come out ahead itemizing though.

I'm really bummed. Today I called the CPA someone recommended to me and she is too busy to take new clients.

[ZoeyZoo]

Originally Posted by Zophie

be careful that your parents don't claim you as a dependent on their taxes if you are claiming yourself though. You both can't claim you. My parents claimed me all through school.

Yes be carefult of this. It would have cost me a lot of money if they claimed me. Since they didn't I was elgible for some additiona deductions (hope credit).

I used to be an accountant but I don't do individual taxes.

With the adjusted gross income it could be less for many reasons. Using the standard deduction (would be a few thousand less), itemizing your deductions for health care and such. Also your employer may deduct money from your check that doesn't usually count toward your taxable income such as 401K and health insurance.