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I have a huge problem.. i just got my W2 from work and it had me having 2 federal exemptions and 1 state... i'm single and dont have any kids.. shouldn't it be 1 or zero? I made 12,388 and my federal tax with held was only 285 is something wrong? Is there any way to fix this? thanks

2007-01-22 14:04:06 · 7 answers · asked by Anonymous in Business & Finance Taxes United States

7 answers

It is too late to fix it, but don't panic too much. The thing that was wrong is the W-4 you filed with your employer. Have your employer show you the W-4 you filled out and submitted to see if, indeed, it says Single 2. If it doesn't, then you have a grip with your employer. It probably won't result in anything, but it will help satisfy your curiosity.

Now, if you are Single and have no dependents and no one will claim you as a dependent, then the first $8450 of income will not be taxed. If you have more than $5150 of Schedule A items, this amount will be more...but I would guess you will not be needing Schedule A. Therefore, take $12,388 minus $8,450 and you get $3938 of taxable income (assuming you have no other income other than your W-2 and you have no adjustments). The tax on $3938 is roughly $394. You had $285 withheld. Assuming you have no credits, you will owe the difference or $109. You have until April 16th to mail the $109. Hopefully you can come up with $109 in 10 weeks. It is only $11 per week and it looks like you earn about $250 per week.

Oh, by the way, while you are talking with your employer about the W-4, be sure to change it so you are claiming Single 1. If you want a larger return and don't mind getting a slightly smaller paycheck each week, claim Single 0.

Good luck!

2007-01-22 14:14:44 · answer #1 · answered by TaxMan 5 · 0 0

Firstly, let me state that I am not a tax professional, but have been working with my own taxes for over 20 years.

1. File a new W-4 form immediately. If you don't live with your parents, change the Federal allowances to 1.

2. You should ask your employer to show you the most original W-4 and state form that you filled out. Have him make copies for you. If you claimed correctly on your W-4, but your employer withheld incorrectly, you may be able to get your employer to assist you with any tax that you may owe.

3. Talk with a tax preparer and/or fill out your forms as soon as possible. Since you are single with no kids, you can fill out Form 1040-EZ by yourself. The instructions are rather easy and the form is available for download at http://www.irs.gov. This will give you an idea of how much you will need to pay. You might get lucky and actually get a small refund on your state taxes since your taxes were withheld with claiming only one allowance.

4. You don't have to mail your tax returns (with payment) until April 16 (April 15 is on a Sunday this year), so you have a little under 3 months to get the money together, save what you can, you may have to borrow the rest....if your employer screwed up, maybe they can assist you with an advance. If you actually did fill out the W-4 the way that was reflected by your withholdings, it's up to you to find a way to pay the tax.

Here's the good news........

Assuming you're not paying a mortgage, and if you live on your own (not with your parents), the 2006 Standard Deduction for singles is $5,150 and the personal exemption is $3,300. To find out your taxable income, you subtract all of this from your Gross Income. This means that your taxable income is just under $4,000.

Taxable income under $7,550 is subject to a 10% tax...so your tax for 2006 is about $400. From your withholdings, you have already paid $285....so you will owe about $115. Hopefully this is an amount you can put together in 3 months.

Fill out Form 1040-EZ to find out exactly what you will owe.

2007-01-22 14:07:29 · answer #2 · answered by Yep! 4 · 1 0

You will owe about $79 in federal income tax with the $30 Telephone Excise Tax Credit claimed . There will be no penalty for underwithholding.

If this bothers you, fill out another W-4 and change your allowances from 2 federal to 1 federal for 2007.

2007-01-22 19:18:42 · answer #3 · answered by ninasgramma 7 · 0 0

As long as you claim it correctly when you do your taxes you should be fine. You might have to pay instead of getting a return this year. Straighten it out with the accounting department where you work at so it doesn't happen again next year.

I don't think you can get in trouble for that. A lot of people have 0 exemptions to have them take out more per pay check and then they end up with a bigger return.

2007-01-22 14:14:44 · answer #4 · answered by ? 6 · 0 0

The w4 form you filled out when you got the job is the reason. You set yourself up with 2 deductions. You are going to have to pay this year (instead of getting a refund) most likely, but you can refile a new w4 and reduce it to 1 or 0 so you won't have the same problem next year.

2007-01-22 14:11:06 · answer #5 · answered by qmstr725 3 · 0 0

Well, yes, something is wrong. You need to file a new W-4 with correct information on it. See your Payroll department if you have one, or ask your boss who to see about it. The wrong numbers are why so little was withheld. You will probably owe taxes this year when you file.

2007-01-22 14:54:56 · answer #6 · answered by Judy 7 · 0 0

No U are gonna owe about 159 in federal.....

2007-01-22 14:16:02 · answer #7 · answered by shimmyshimmer 3 · 0 0

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