Taxes

What does everyone have in common? According to one joke, we all must pay taxes. Around April 15th of every year though, taxes are no joke. The federal government expects every citizen to file their taxes by midnight that day or you may have to pay a late fee.

Taxes don't have to be so confusing and more than likely, you will actually get money back so it's wise to learn more about them.

What are taxes?
Taxes are mandatory payments to the city, state and federal government in exchange for services such as police and fire departments, street maintenance, disaster relief and even water service. Some taxes are automatically taken out of your paycheck, such as unemployment insurance and worker's compensation insurance in case you get injured on the job and need time off.

Your taxes
After January 1st, any employer you worked for in the previous calendar year should send you a W-2 form. This form will indicate exactly how much money you earned before anything was taken out (gross pay), how much money you earned and actually took home after taxes (net pay) and how much money you paid in taxes already. You will need these forms to complete your taxes so make sure previous employers have your current mailing address.

Exemptions
How much tax you pay depends on your total income and how many exemptions you file for when you first sign a W-2 form with your employer. If you are still a ward of the State, someone else can claim you as a dependent so you would have zero exemptions...you are financially supporting no one. If you are emancipated or over 18 with no one else claiming to care for you, you may claim yourself as one exemption. Additional exemptions are for a spouse or any children you financially support.

The more exemptions you file for, the less tax you have to pay out of your paycheck.

Filing your taxes
You can either get a booklet and form explaining how to file your taxes yourself or you can seek assistance through the internet or by phone. Be prepared to have your W-2 forms and bank account statements mentioning any interest paid to you in the previous calendar year. You can file your taxes anytime between January 1st and April 15th for the previous calendar year.

 

 

 

1.What information will I be asked on my tax form?

2. What kinds of tax deductions might I qualify for?

3. Where can I get help with my taxes?

 

 

 

 

Are you a dependent?

While you are in foster care, the State of Washington is financially responsible for your well-being. Therefore if you are filing taxes for income earned within the past year, you must file as a single person with no exemptions. If you are emancipated however, then you can claim yourself as one exemption.