<p>Estimate the income tax your parents will pay for 2013 using their 2012 IRS Form 1040, line 55 and 2013 pay stubs and other financial documents.</p>
<p>So for that, I looked on my parents' form for line 55 and the number seems pretty low? Is that the actual income tax for the entire year? Because my parents pay more than what is written but we went to a very reputable tax form person (lol) to do our taxes. So can you guys give me a range of what you guys put for that?? (like 0-2500, 2500-5000, etc)??</p>
<p>It doesn’t matter what anyone else put, it depends on the income reported. It could be $0 or over $100,000 depending on income. Low is relative.</p>
<p>Are your parents self employed…or do they own a business?</p>
<p>Yes, line 55 is generally the total amount of federal tax owed for the year. If your parents paid more in withholding, it may be attributable to state income tax. Otherwise, they should get a refund.</p>
<p>They are not self employed nor do they own a business. It was filed jointly but only one of my parents work
I know close to nothing about all this stuff so if the income was $50000, would $900 for line 55 be about right? or is that wrong?</p>
<p>You can’t just plug in an income number and get a tax owed number. It depends on so many things… type of income (wages, capital gains, etc.), number of exemptions, deductions, credits available, filing status and many other factors.</p>
<p>$900 seems a little low but it depends on many things. How many dependents they can claim, if multiple dependents are eligible for the child tax credit, if they contributed to IRAs, if they claimed the standard deduction or itemized. Such things as high medical bills not reimbursed by insurance or if they paid all premiums themselves, mortgage interest, property taxes, high charitable contributions. If the taxes were done by a reputable preparer, I would believe the numbers.</p>
<p>Alright thanks! Also exemptions is just a number like 0, 1, 2, 3, etc right?</p>
<p>Sorry I’m just terrible at this stuff haha and I want to make sure I don’t screw it up</p>
<p>Yes, exemptions is just a number which when multiplied by a dollar amount serves to reduce the adjusted gross income to help come up with a taxable income.</p>