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Did you know you pay higher taxes if you are under 25?


TravelingChris
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I am really angry about this. My son, who is 23, moved into his own apartment last year, shortly after he got a full time job. He is only paid a bit over minimum wage. He usually only works 35 hours a week. He is living on a poverty level.. He had taxes taken out but having always heard that very low income people don't pay taxes, and since he is definitely below the poverty level, I thought he would get almost all of his money back. Well, no. YOu see, he isn't 25. If he was 25, he would get it back.

 

Well, fed gov't and congress, since you decided to put such a dumb rule in place, he has decided he will take food stamps, after all. He had been trying to be self sufficient but he is actually eligible for food stamps at a rate of 60-70 dollars a month. So because they didn't refund him 300 dollars, he will now be costing the government between 720 and 840 dollars a year.

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I don't believe he gets any FICA/Medicare back, either...and that doesn't change when he's 25. I've been paying those taxes for nearly 30 years. But I believe if he makes over $9,000 or so, he won't get everything back. (I don't remember what the standard withholding is...sorry!). He will owe 10% (I believe) on anything he made above the standard deduction, unless he has itemized deductions. As far as I know, this formula doesn't change at 25, either. Now, the EITC is a credit (it's different than getting what you paid in back, as it can result in MORE money "refunded" than paid in). Based upon the comments above, that may be what you're referring to.

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Yeah, I don't think anyone ever gets back FICA/Medicare, no matter how little you earn.

 

Many states are much less progressive tax-wise than the Feds, too, so lower income folks who pay 0 fed income tax, or even get refundable credits like EIC from the feds may still owe the state, and always the FICA./ Medicare.

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At $7.25/hr, a single fellow with no dependents earns $15,080 gross in a year. (52 weeks, 40 hours a week)

 

If no one can claim him on their taxes, and he is ineligible for EIC his adjusted gross income will be $5,330 and he will owe $533 in taxes.

 

If he had more than that taken out of his paychecks, he'll get a refund.

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Or are there other things that change at age 25?

 

There is nothing besides the EITC that changes at age 25 (or if you are married or hoh and a parent). It used to be that the EITC could be claimed by any low income adult, regardless of age. He does not pay more because he is under 25. He does not get a refundable credit designed primarily for people in long term or family poverty as a single young adult.

 

If he makes over about $10,000 a year his tax burden is low, but no zip, unless he has a spouse or child to claim.

 

He should take any food stamps he is eligible for without any hesitation, regardless of if he is ineligible for the EITC.

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Renee said, "Poverty level for one person is $11,170. "

Yep, that was him last year. He didn't get a job until mid March and he doesn't work 40 hours a week- most low paid people don't.Yes, it was the Earned income credit that he is not eligible for. Yes, he is at poverty level and does live alone- did I mention that his diet is very poor. Rent is 400, utilities are like another 140, and he spends little on gas since he works only a few miles away, and only a few miles from us too. As I said, we feed him usually at least once a week. HOwever he is being very responsible- he does have car insurance, and he is very slowly paying back his student loan.

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Renee said, "Poverty level for one person is $11,170. "

Yep, that was him last year. He didn't get a job until mid March and he doesn't work 40 hours a week- most low paid people don't.Yes, it was the Earned income credit that he is not eligible for. Yes, he is at poverty level and does live alone- did I mention that his diet is very poor. Rent is 400, utilities are like another 140, and he spends little on gas since he works only a few miles away, and only a few miles from us too. As I said, we feed him usually at least once a week. HOwever he is being very responsible- he does have car insurance, and he is very slowly paying back his student loan.

 

he should take the food stamps. He is one for whom food stamps were designed.

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