Been married for over a year but my paycheck still says single have they been taking too much money out in tax

Question

I've been married for over a year but my paycheck says single, have they been taking too much money out for taxes and is there a way to get that money back?

Answer 1

When you file your tax return, you'll get the excess back. Talk to your payroll folks and change your withholding to married.

Some people like the big refund check and continue to do single/1 exemption, though.

Answer 2

If they are withholding too much, you are basically giving the IRS an interest free loan. Some people like getting money back at the end of the year, like it is a forced savings plan, however if you have the self control to deposit the excess every paycheck and not touch it, at the very least in your savings account you will be earning 1% on the money. Having the IRS hold the money for you until the end of the year, you earn nothing.

That said, since you are married, does your spouse work? Just because you are married and they are withholding at single rates does not necessarily guarantee that you will get money back at the end of the year. This is because of the "marriage penalty". When you have couple with both spouses working, the couple will end up paying more taxes than two single individuals making the same money. This is because the income levels in the tax brackets for married are not double the single tax brackets.

The withholding tables for singles and married that employers use to withhold taxes on are based on single incomes. For a married couple, the withholding table assumes that the employee's income is the sole income for the couple. When that is not the case, such as when the other spouse is working as well and also have withholding, you could run into a situation where you could be underwithheld for the year and owe tax at the end of the year. There is a worksheet for the W-4 that will allow you to consider your spouse's income in figuring out the correct withholding. This usually results in a little extra being withheld.

For example, when I was first married, my wife worked. With no kids at the time, my W-4 was set at Married, 2 exemptions. My wife's W-4 was set at Single, 0 exemptions. At the end of the year, we still owed $2,000 in taxes. This illustrates the marriage penalty. If I left my withholding the same, the correct withholding for my wife should have been Single, 0 exemptions, but with extra withholding of $83.33 per paycheck (semi-monthly pay). This is with just claiming the standard deduction. Now with 3 kids and the child tax credit and only one income (wife is a stay at home mom), itemized deductions for state income taxes, property tax, mortgage interest and charitable contributions, I have my withholding set at Married, 25 exemptions.

Answer 3

You should get it back at the end of the year on taxes. The more they take now, the more it benefits you at the end of the year at tax time. You will either get it in the form of a refund or by lowering your tax liability. If you'd like to see it throughout the year instead of alot at the end, then change your W-4 to married and claim one. It won't take as much, but it will still take some.

Answer 4

STAY AWAY from anyone on here that mentions private loans or any emails you get that chase you offering you private loans! Be careful. Do the FAFSA when it is time and the govt will provide you with the proper channels if you need to take out loans. They have lowered interest rates and all parent plus loans are now through the Dept. of Higher Ed. It is your choice if you need to pursue additional loans through a bank, etc. but remember this is his education so he has to be responsible for it. My son just left for college and I work at a college too. We make about half of what all of our friends make (even less than half in some cases). My son is going to a state university (small one so it has a personal touch and small classes) and that saves a lot of money. Check the state university ratings in US News and World Report and look for those that are rated high in your state. Figure out if he wants a smaller school or a larger one. If he goes to a public university outside of your state it will cost almost double. There are FAFSA (fed. financial aid calculators) everywhere online. I did a calculation a year ago when he was in high school and it ended up being pretty accurate when I finally actually did the paperwork. He needs to see his guidance office and start applying for scholarships early. Some of the big ones (Coca Cola, etc.) have early deadlines. We were surprised with a 2K renewable scholarship (private, not through the school or the feds) in the middle of July and found out it is renewable for all four years if he keeps his grades up. Make sure he belongs to clubs, activities, sports or does community service. This is important when applying for scholarships. ALSO...the federal govt and public universities are ALL about first generation students. If you did not go to college and you are a single mom, that is a plus right there (I am not sure whether your ex went to college or no or how you handle your tax situation with your son but...). My son was not first generation because I went but my husband did not however I know that they ask this question on college applications, I think the FAFSA and everyone right now wants to help the first generation college-bound kids.

Answer 5

You have to go to the payroll person and change your withholding status. Payroll does not change your deductions without you authorization them to do it. Single status takes the most Federal and State taxes.
If you want to brake even at the end of the year, not owing or getting a tax refund you can do it very simply. It is too late for 2006, but you can set up your status for 2007.
Go to the tax table in the instruction book, look under your taxable income for 2006. What status would you have to carry during the year to break even? Married, single, # of dependents? I do not know what tax bracket you are in so it is hard to give you a break down. You can indicate a status for tax purpose during the year, but you have to file at the end of the year with the correct/true status that you are in. Example: during the year you can have payroll to base the deductions on married with 5 dependents. At the end of the year when you file your income tax, 1040 you would put married with two, if you do not have any other dependents.
Some payroll systems are set up that you can chose between a standard deduction (single, married, head of household) or a percentage (5-40 %.) of your gross. I use to have payroll deduct 32% of my gross, and at the end of the year I would get or owe under $100.00. I did not want to wait under the end of the year to get a tax refund.

Answer 6

Yes, they've been taking more than neccessary out-- but thats the purpose of tax returns. WHen you file yoru income taxes you'll just get a higher return. Think of doing yoru income taxes as a 'reconcilliation' for what you paid for the year.

You can leave it at single and get more money or lower it and get less but more at paycheck time.

Answer 7

You need to give your employer a new W-4 to adjust your withholding. As far as amounts already withheld, they will show on you 1040 as payments. Your refund is the amount you have already paid less your tax liability. The IRS actually has no idea if your W-4 says single or married, they just know how much your employer withheld.

Answer 8

It seems everyone has been missing one very important point. Who is the higher wage earner? If it is not you, keep it at single. If you change it to married you will pay far too little. In fact, keeping it at single 1 might also mean you would pay too little.

If you are the main wage earner, you should switch to married and co-ordinate your withholding allowances with your spouse. Go to the link below and click on W-4 in the top left hand corner. It is fillable online, which makes it much easier than the paper version.

Answer 9

They probably have been taking out too much. File a new W-4 with your employer to show that you're married now.

When you file your tax return early next year, any extra that was taken out will increase your refund if you have one, or decrease the taxes you pay. You won't get cheated out of it.

Answer 10

The payroll department in your workplace wont generally get told of your change in status unless you dp it yourself.
Chances are, they have no idea. You have to fill some forms to indicate any changes in status etc, and that form remains with your employment file.
If you are getting more money taken away, it will also mean that you will have more money given back to you after your taxes are calculated.