When I did my w-2 that I was trying to file electronically, it said that I OWED $171. Which is odd to me seeing as I have never owed before, am not married, no kids, don't own a house, NOTHING. I made a whole $14000. I have two w-2 forms from two places I worked this year, and on one of them it says that I had federal income tax withheld, and the other one doesn't have anything. Could this be the reason it is saying I owe? And why would I even owe in the first place?
I claimed 0 and I work for JC Penny Inc.
2007-01-15 07:44:50 · 3 answers · asked by Liquid Cherry Blood 1 in Business & Finance ➔ Personal Finance
This is a common problem with people working more than 1 low paying job in the year. Did you claim 0 on both jobs? And is it possible the amount you owe is from the state?
2007-01-15 09:59:18 · answer #1 · answered by Michele 2 · 0⤊ 0⤋
Yes, the reason you still owe is because the 2nd place wasn't withholding any taxes.
Being single, on exactly $14,000 of income, your federal tax for the year would be a little over $1200.
Each employer, by default, will only withhold taxes based on income earned from them. You can have an employer withhold more if you'd like.
So the taxes that were withheld were not enough based on the fact that you had a second job that wasn't withholding anything.
Also, since you had two jobs, the income from each job would have probably placed you really close to two tax brackets. So, they may have only withheld based on the lower bracket. But, when you add in both jobs you're in the higher bracket.
2007-01-16 00:06:50 · answer #2 · answered by jjbone_99 2 · 0⤊ 0⤋
do you save your old paycheck to see if any fed or tate taxes were taken out???? Instead of relying on the W-2 form..
2007-01-15 15:53:20 · answer #3 · answered by tshark44 5 · 0⤊ 0⤋