I got my income tax done for free and the person says that I must pay back 400$ back to the feds is this true?

I got my income tax done for nothing at a community centre by a volunteer.I make less than 14000per year last year,I claimed my rent , student loans interest,and my meds[which the person would not listbecause it was 50$ less] he says that I owe the feds 400$! I told him I will go for another opinion and pay for a professional, I thought people who low income , my case below the pverty line for single people in Toronto is 17000 per year do not pay for taxes unless they were over paid . I dont understand what do you think?does this make sense?

Re-do your tax forms....with a tax preparer. At least this way you won't have any doubts years later.

If you really are in Toronto Canada - ask your question on the Canadian section of this site...

It's possible.

Since you asked this under "US taxes", I'll assume you're talking about a small town Toronto in the US that we just haven't heard of.

In the US, the standard deduction is $5,000. If you made betwen $5,000 and $15,000, you owe 10% of the excess above the $5,000 deduction.

well if you had a tax laibility and not enough federal with holdings, then it is possible to have a balance due. i would ahve someone else, perhaps a larger tax preperation office look at it.

With the 14000 you make, its over the personal amount that can be earned without being taxed (ie the basic personal amount for federal tax is 9600, therefore once you make over 9600 (excluding any other deductions possible) you will be paying tax). Did you fill out a form with your work asking them to take more/less income tax this year? If you didn't and had just left the lines blank, they would have taken just the basic taxes necessary and (as I'm in Canada too) I know that with the Government's reduction in personal tax rates effective Dec 07 for the whole of 2007, anyone who had no extra income, would have received at least .5% back due to the reduction in the lowest tax bracket rate of .5%. I'm sorry if this is not making much sense.

Without knowing all the info and what transpired, I'd probably go to a professional, especially since I've found as a student, tax preparation firms charge about $50 or less for those with a low level of income. I just use QuickTax though.

In the USA, a single person making over about $8,000 has to pay some tax. Student loan interest is not deductable. Your meds would be deductable only if they exceeded 7% of your income and you itemized.

Your taxes would have been very easy. I doubt they made a mistake. You can go to a tax place and spend $50+ to have them done.

Next year learn how to do your own. At your income level taxes are pretty easy.

Get a second opinion!

Taxes, who pays them? LOL

I've seen this happen. I remember a lady who claimed zero; payment withheld correctly, and she received a tiny refund from the IRS and the preparer told her she owed the state! This was in a state in which personnel departments way overheld regarding state taxes on the filled out W-4s.

Just do FreetaxUSA, Free1040now, or Taxact on line. Some states do not have free eFile on their website. One taxpayer emailed me and said it was only 10.00 to do BOTH Federal and State on FreeTaxUSA. Turbotax is 30.00; TaxAct is 17.00. H&R ripoff's taxcut is 45 and there have been complaints about the software and even the accuracy of the software. Several States do not charge on their website to do income taxes. So you may be able to iFile {eFile} the State return for free. If the IRS accepts your return, you should get your State back in 5 business days {except NY} and your Federal in 10-15 business days depending upon how late in the season. This also depends upon the software not messing up. You have to keep checking to make sure it went through. I've bought very expensive software before (Drake) and it didn't go through. I got all kinds of lies and excuses for why it didn't go through, depending upon which rep answered the phone. Don't go to block nor jackson-hewitt!

You can do your taxes yourself unless you are in a complicated situation - a proprietorship, partnership, lot of real estate deals with depreciation, foreign taxes and regulations, own a mutual fund
- along that line. If you are not comfortable, get on the National Association of Enrolled Agents - naea.org - website. Click on "Find an enrolled agent". Type in your town, state or zip code. Enrolled agents do not work cheap, but your taxes will be done right and they will go with you if you are audited by the IRS. They are usually not attorneys but have the power of attorney with the IRS.
Enrolled agents are professional tax practitioners who have technical expertise in the field of taxation, and are licensed to represent taxpayers before the Internal Revenue Service at all administrative levels. Moreover, enrolled agents are the only tax practitioners required by Federal law to maintain their expertise through continuing professional education. Tax attorneys and CPA's used to, but lobbied and no longer are required. It was too hard for them to pass the EA examination and to maintain their certification through continuing professional education. A CPA is worthless to the taxpayer unless that taxpayer is an Enrolled Agent. Note all the scandals. Accountants can't account. Lawyers lose on your behalf and lose radically. Bankers are insolvent. Journalists can't report: they never tell the truth. Economists can't predict recessions and depressions. There have been ZERO scandals in the vast majority of enrolled agent chapters since the founding of the NAEA in 1982.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.004
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy