I make $ 29,120.00 per year and I am lucky if I get a toatl of $ 150.00 back which includes both State and Federal... I take the most money out each week and still nothing... Why do you think?
2006-12-11 04:44:25 · 5 answers · asked by fun11 2 in Business & Finance ➔ Taxes ➔ United States
Dana B is right---it depends on what your standard deduction is. You can check out the IRS website and download a 1040 form to see. If you are single, your standard deduction is $5150 for tax year 2006. Anyone can itemize, but it only makes sense to itemize if your itemized deductions are greater than $5150. People who give a large percentage of income to charity and/or pay a home mortgage often have large enough deductions to make it worth their while to itemize. In your case, I would guess that your potential itemized deductions are less than your standard deduction unless you give about 20% of your income to charity or you own a house.
2006-12-11 05:57:27 · answer #1 · answered by Minnesota_Slinger 3 · 3⤊ 0⤋
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2006-12-11 04:47:29 · answer #2 · answered by BfrombigD 5 · 0⤊ 0⤋
Look at it from the other side. If you are in the 35% tax bracket (the highest Federal rate), and you donate $1000, your Federal taxes would be reduced by $350. This is assuming you are itemizing already. In this case you are still out $650. If you wish to donate to support the cause, please do. If you are just trying to reduce your taxes, it will always cost more than you save. That said, there is no floor for charitable contributions. As long as your total itemized deductions are more that the standard deduction, you can begin deducting from the first dollar. Actually, you could itemize deductions even if they are less than the standard deduction, but I doubt you would want to.
2006-12-11 11:25:09 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
In order to deduct donations, you have to "itemize". This means the total of the deductions on your Schedule A are higher than your standard deduction. Check out the instructions for Schedule A to see if you can deduct enough of those items to itemize. (mortgage interest, property taxes, donations, etc.)
2006-12-11 04:48:07 · answer #4 · answered by Dana B 2 · 4⤊ 0⤋
Information is missing, how many exemptions do you clam on your W-4. The higher the number the less they take out (and the less your refund will be). If you are claming zero or one it sounds like you are leaving money on the table. It is a good thing to get a small refund (if done correctly).
2006-12-11 05:30:40 · answer #5 · answered by Paul B 2 · 0⤊ 1⤋