College student question: What tax do i have to pay?
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Hi there. I am still in college but will be out soon. I would like to get used to the whole TAX idea and get ready myself before I come out to the real world ^-^ My situation: I am a college student (age 20) interning 20 hours a week at $15/ hour and a full time student. Although the income isn't a lot, I plan to graduate without debt and its enough to provide food and shelter for now. I reside in Philadelphia, my parents reside in whitemarsh township, and my internship reside in Paoli township. I filed taxes as a dependent student around March (way before the april 15 deadline). I was planning to file as independent, but it seems like (according to Turbotax) that I will get more money from American Lifetime Education Credit if I file with my parents. Every pay check, they take out: 1. social security 2. unemployment PA 3. Medicare 4. some Paoli township wage tax 5. PA and Federal withholding Now. I got received a letter from this self-claimed tax collector saying that I have to fork up an additional 1% of my total income to Springfield township. They only have my name, address (my parent's), and my SS number. They request to fill a form that state my wage. Their website looks pretty shady, and didn't send this letter until DECEMBER. Plus i have to pay 6% of late payment fee. The question: Is this tax collector the real deal? I looked up the county website, it said NO. I looked up the township website, it said YES. I tried emailing them... no response. Hmm... I wonder if I should best ignore it. The question is, which tax am I liable for? I know Medicare, unemployment, PA state tax, Federal tax, social security tax have to be paid. But I am real confused about the nitty-gritty township tax and wage tax. What I am getting is: I have to pay Paoli wage tax (cuz I work there), Whitemarsh wage tax (cuz my parents live there), and Philadelphia Non-resident wage tax (cuz I am reported as living in my parent's home but live in Philadelphia). I don't know if this is right. It seems like the the govn't is triple dipping T.T
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Answer:
The local taxes are based on where you work AND where you live. How is Springfield relevant? Since you are a college student, you need to see if you count as a resident for local taxes based on where you live as a student or where your parents live. If you pay local taxes based on where you live, you may be able to get a credit for taxes paid where you work. Yes, check the websites for each township and read the forms carefully. EVERY locality with a tax is beating the bushes hunting down people who haven't paid. http://www.springfield-montco.org/index.asp?pageId=76
hahaseas... at Yahoo! Answers Visit the source
Other answers
these local taxes have nothing to do with your federal or state tax returns, whether you file as a student dependent or otherwise if you file your return with your parent's address, there is likely a city tax and since you filed your own tax return they will assess you individually and apparently there is a local tax on the location of your work times are rough and locals are taxing anything and everything they can to meet a budget
What's your connection to Springfield Township? If you don't work there, don't live there, and your parents don't live there, I'd call them and tell them all that - nothing in your question indicates any connection there to give a reason why you'd owe them.
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