Doing your taxes if you're DACA approved

[itzel 336]

Hi Everyone!!!

Havent been online as often as I'd like...work and getting ready for school has kept me occupied. Approval from DACA is guarenteed to open many new doors and possibilites for all..

Well, heres what this post is about...taxes...

This is my first legal job ever, before DACA I worked under the table and never filed taxes...

Well this job, every paycheck withdraws taxes...

Ive been reading up on doing taxes and the different categories..nonresiden and resident..

DACA didnt provide us with any type of legal status, however Publication 519, the US Tax Guide released by the IRS, categorizes us as resident aliens because of the time we've been here (page 5)..

They even have this little table that helps you determine what to file under..

I will be filing as a resident as indicated by Publication 519 because of the time I've been here in the US, I mean we obviously had to meet that requirement to get qualified for DACA..

For any Android users, theres a free app called "TaxCaster" from Turbo Tax and gives you an estimate of how much you'd be getting back..its really user friendly..

Now all I have to wait is for my W2 from my employer at the end of Jan. and get back some of those taxes...

Heres the link to Publication 519: http://www.irs.gov/p...rs-pdf/p519.pdf

Any questions/comments feel free to do so..we're here to help each other out and Im sure I can learn something new....

Itzel...

[Fredo87 34]

Hey Itzel,

Very nice post and great app . Are you planing on filing your taxes yourself or are you going to an accountant?

[itzel 336]

Ill probably do it on my own...its not as hard as it looks, plus my mother in law is an accountant, so I'll have her look it over..

[Aled 118]

Great post Itzel and thank you. I recently landed a new job and this thing about doing taxes kept buzzing in. The back of my mind.

[beatrizrivera909 38]

IS WEIRD HOW IF WE HAVE NO KIDSA WE GET PAY LESS:(

[itzel 336]

@aled: I swear..when I saw my paychecks and saw how much taxes are being deducted, I was like "really, are you freaking kidding me??" Doing our taxes will give us a little back, if you download the app I mentioned in the post, it estimates how much you can receive...

@beatriz: I dont have kids and Ill still be getting some money returned..even if its less, at least its something..beggars cant be choosy.

[latinagirl 46]

thank you so much for the information!!

[itzel 336]

Youre welcome latinagirl and welcome to the forum

[pswa83 302]

as weird as it sounds, i cant wait to do my taxes next yr.

[Fredo87 34]

If you file single 0 on your W-4 your employer deducts more taxes out of your paycheck. Single 0 is the filing status where more taxes are withdrawn. But when you do your taxes the beginning of the next year you can file single 1 and you get more money back. That's what I do and I get a nice tax check back.

[GayHomoFag 1]

How does one do taxes anyway?

[Rawf 336]

If you file single 0 on your W-4 your employer deducts more taxes out of your paycheck. Single 0 is the filing status where more taxes are withdrawn. But when you do your taxes the beginning of the next year you can file single 1 and you get more money back. That's what I do and I get a nice tax check back.

My boss told me I can do Single 1 as well so I don't get as much deducted from my checks. I thought that was against the law, but apparently it is something normal to do.

[Fresita22 101]

taxes yeah i forgot about that i hope i can do them next year with my own social and not my TIN number

[roadrunner11 167]

My boss told me I can do Single 1 as well so I don't get as much deducted from my checks. I thought that was against the law, but apparently it is something normal to do.

I did Single 1 this year too Rawf; otherwise, they take away so much if you put a 0. I do have expenses because I am not a dependant anymore, hopefully I don't end up paying money.

Thanks Itzel! This was very helpful.

[Fredo87 34]

My boss told me I can do Single 1 as well so I don't get as much deducted from my checks. I thought that was against the law, but apparently it is something normal to do.

It's not illegal to do that because between the time you fill out your W-4 and the end of the year your situation might change (ex. you get married, have a child, etc). The only thing that is illegal is if you file your taxes with false information inorder to get back a bigger refund.

I did Single 1 this year too Rawf; otherwise, they take away so much if you put a 0. I do have expenses because I am not a dependant anymore, hopefully I don't end up paying money.

Thanks Itzel! This was very helpful.

I do single 0 because I did single 1 one year and 1 ended up paying back $100 to the state and my federal tax check was small lol Single 0 deducts more taxes but at the end I get a nice refund .

Even if you're not a dependant you still get a refund. Actually when you're a dependant you get less back when you file your taxes because your standard deduction is less and you are limited to any personal deductions. It's better when you are not a dependant.

[itzel 336]

Just like Fredo, I also put 0, because yes, they take out more $, but when you do your taxes, you get more back. I think its really personal choice if you put a 0 or 1, because neither is wrong. Good luck to us all and our nice fat checks coming our way!!!

[JayhOR24 58]

I was wondering about this not too long ago! thanks now I know!

[Cochoz 48]

So, how would I go about filing as self-employed?

[Fredo87 34]

So, how would I go about filing as self-employed?

Here is the web page with self-employment tax info http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed

Here is the form to file your taxes http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

Any questions on the topic let me know and I will help you to the best of my knowledge.

[Fredo87 34]

There are two tax return we will need to file : The federal tax return and the state tax return

This is the form that is needed to file the federal tax return (Form 1040) : http://www.irs.gov/pub/irs-pdf/f1040.pdf

NYS residents this is the form needed to file for NYS tax return (IT-201) : http://www.tax.ny.gov/pdf/current_forms/it/it201_fill_in.pdf

CA residents residents this is the form needed to file for CA tax return (540 form) : https://www.ftb.ca.gov/forms/2012/12_540.pdf

PA residents residents this is the form needed to file for PA tax return (PA-8453) : http://www.revenue.state.pa.us/portal/server.pt/community/personal_income_tax/14692

NJ residents residents this is the form needed to file for NJ tax return (NJ-1040) : http://www.state.nj.us/treasury/taxation/pdf/current/1040.pdf

*It's a 2011 form - That is the only form I was able to find

Anyone who can't find their states tax return form let me know and I will help you look

[BRIZA87 12]

i'm exited to do my taxes this year because last year i only got back about $600.00 out of the almost $7,000 i would've gotten if i had a good ss# By the way remember if you are between 25 and 65 years old you are eligible to receive the eic (earned income credit) which is where most people get big amounts of money back!

[pswa83 302]

with the whole fiscal cliff mess, it would be interesting to see how tax season pans out.

[rociomagdalenaa 11]

Okay, so for my job, I started working there in april of 2011. I gave them a fake ss# .I filed my taxes with an ITIN . after I got my ss# i didn't let my employer know and I haven't given them my new ss#. When filing taxes this year what should I do? I know that the ITIN won't be valid, so I'd have to use my new ss#, but will that work since I haven't used it yet?

[Rawf 336]

Okay, so for my job, I started working there in april of 2011. I gave them a fake ss# .I filed my taxes with an ITIN . after I got my ss# i didn't let my employer know and I haven't given them my new ss#. When filing taxes this year what should I do? I know that the ITIN won't be valid, so I'd have to use my new ss#, but will that work since I haven't used it yet?

Yes it will work.

[itzel 336]

UPDATED INFO:

I like to browse around other forums with fellow DREAMERS and educate myself over various subjects. One of the things that is very present at the time is doing my taxes. I found a post by a DREAMER by the username of msaccountant where he/she gives extra info we may not be aware of. Here it is and at the end I have posted the link to where I found this info. I take no credit for the following information

The purpose of this thread is to try and educate fellow DREAMers about filing individual income tax returns. I won't go into full details again like I have said again and again I'm no tax expert but I do have basic knowledge when it comes to this and I will try my best to help anyone out. (Any other members on here accounting majors, business majors, and anyone that has experience/knowledge is more than welcome to help out.)

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What do I do with my ITIN now that I have an SSN?

Once you're approved for DACA/EAD and have received your new SSN you must give up your ITIN.

This thread will tell you what you have to do: http://dreamact.info/forum/showthread.php?t=33829

Once you do that you will not use your ITIN to file taxes ever again your new SSN will be the number you use from now on.

Do I qualify for the Earned Income Credit/Earned Income Tax Credit?

Depends. You must be at least age 25*, your filing status must not be Married Filing Seperately, have a vaild SSN, and meet the income requirements.

Once you're approved for DACA/EAD and have received your own SSN you will have a valid SSN. However, you must know that if anyone on your tax return does not have a valid SSN you will not receive the credit.

I would advise those of you that previously had an SSN to get a new card before you file because if the preparer sees that it says it's not valid for employment then they will think you don't qualify for the credit.

*If you have children the age limit does not apply to you.

In addition, only the following income is classified as taxable earned income:

• Wages, salaries, tips, and other taxable employee pay;
  
• Union strike benefits;
  
• Long-term disability benefits received prior to minimum retirement age;
  
• Net earnings from self-employment if:
  
• You own or operate a business or a farm or
  
• You are a minister or member of a religious order
  
• You are a statutory employee and have income.
  

Examples of Income that are Not Earned Income:

• Pay received for work while an inmate in a penal institution*
  
• Interest and dividends
  
• Retirement income*
  
• Social security*
  
• Unemployment benefits*
  
• Alimony
  
• Child support
  

*Don't think any of you received that but still good to know.

Do I qualify for Education credits such as the American Opportunity Credit, Lifetime Learning Credit, or the Tuition and Fees deduction?

First of all to qualify for any of the credits the amount you are trying to deduct must be paid out of pocket, if it's a scholarship or perhaps you receive state aid that portion is not tax deductible.

Second, no matter who paid the tuition if your parents claim you as a dependent (they provide over half of your own support i.e.: pay bills, food, clothes, transportation expenses) then they will claim the education credit. This is tax law not something you can decide or argue with your folks about. If your parents do not have a SSN in other words they're undocumented they can still claim the credit.

American Opportunity Credit (AOC)

To qualify you must be attending an accredited school at least as a half time student for at least one academic period. (i.e: Half time student for spring semester)

You must be deducting educational expenses that were paid out of pocket for the first 4 years of higher education (undergrad).

You must not be convicted of a felony.

Also, you must be receiving a degree and/or certificate.

The following do not qualify as education expenses:

Room and Board, Parking Permit, Student Health Insurance, Travel and Research expenses.

The following qualify as education expenses:

Books, equipment, fees, and supplies only if they are required for the course.

The maximum credit per student is $2,500.

Only refundable education credit.

Lifetime Learning Credit (LLC)

To qualify you must be attending an accredited school.

Unlike the AOC you do not have to be an undergrad and you don't have to be attending at least half time.

No limit to how many years you can claim it.

The following expenses will qualify as educational expenses:

Tuition and any amount that's paid directly to the school to cover course-related books, fees, equipment, and supplies that are required. If you are purchasing any of these at a bookstore, internet, or somewhere else then they don't qualify.

The maximum credit per family/return is $2,000.

Tuition and fees deduction

Same requirements as the LLC only difference is this is an adjustment to income not a credit.

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This is what I have so far. I will add info on the Child and Dependent Care Credit, and the EIC income requirements.

If anyone has anything else they'd like me to add then speak now (PM me or post on here). I will try with the best of my knowledge and by researching to assist y'all. I won't prepare anyone's tax return nor will I provide an estimate of how much you might see as a refund or if you'll end up paying. I strongly suggest to visit a VITA center in your neighborhood and also to consider volunteering for them because you will gain some knowledge and it's just a great experience to give back. Once you're hooked you will start doing research on your own and asking questions like me.

Also very important the IRS has stated that they will not take any returns (e-filed or paper) until the 30th of January so if you file now and are expecting a refund the wait to receive it will start on the 30th. It's always best to get it through direct deposit though!

Source/Link: http://dreamact.info/forum/showthread.php?t=36978