How to receive Tax exemption?

Question

I'm 17, I live in Akron, OH, and I get paid bi-weekly.

I just got a new job, and I'm getting charged local taxes from 2 different counties, is this because I live in a separate county from where I work? If I moved into the same county, would that change?

Also, I'm getting more than 20% of my income removed for taxes. (Comes out to 6.5$/hour after taxes.) Is this normal? I know at my old job I paid MUCH less.

I know at the end of the year your federal taxes are returned if you make under a certain amount, can anyone tell me what that amount is? Do you get local taxes back as well?

Is there any way to get those taxes simply not deducted? I am going to live on my own starting Aug. 1st, turn 18 Aug 31st, and am a full-time student in college. I am not emancipated.

I'd talk to a lawyer but I have no money to pay one. If there's somewhere else I can go or talk to, that would be nice.

Answer 1

The IRS has a good publication that should answer most if not all your questions.  Visit the IRS web site at www.irs.gov and look at Publication 17 in the forms section (on the left side near the top).

The way to lower your Federal Withholding is to complete Form W-4 and give it to your employer.  You can get this form on the IRS web site too and I am pretty sure there is instructions and a work sheet to see what you should have taken out for withholding.

Hope this helps.

Answer 2

Your first assumption about two counties is usually correct like people living in New Jersey but working in New York.  Your other questions I don't have enough info about to answer correctly.  See a local tax accountant like H@R Block or a private practitioner (see yellow pages in your county).

Answer 3

As a dependent, you can potentially make $5450 in wages during 2008 and not owe taxes.  

As for local taxes, ask someone to review your paycheck with you.  If you legally live in city A, you can owe taxes to A.  If you work in city B, you can owe taxes to B.  A will often give you a tax credit for taxes paid to B.  (Many of us do not live in areas with overlapping taxes so we won't be familiar with it.)

You cannot avoid these taxes.