I have always filed my own taxes and have never had any problems, but I'm am completely confused as to why, when I complete the e-file process, it says I owe! I have really simple taxes, with two W-2's to report, no kids and no other deductions/income. When I add each of them seperately, each one has a summary that says I should receive around $440 back. But when I add them both on, I magically owe $162! I don't understand...If the summary shows each one gives me a credit around $440, shouldn't I be getting a refund around $880...and not have to owe?! Someone give me a clue please. I'm completely confused and this has never happened to me in previous years.
2007-01-22 18:57:27 · 6 answers · asked by ? 2 in Business & Finance ➔ Taxes ➔ United States
you are probably in a higher tax bracket when both are added and did not pay enough taxes during the year. It can easily happen with more than one employer.
2007-01-22 19:07:40 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Nooooo, not the $880 refund, because separately, each one figured in the standard deduction but you only get that once for the year - not on each employer.
Did you do your previous years taxes with separate figures ?
The IRS may be coming to audit you for double claiming the standard deduction !
Additionally , the 2 together put you in a higher bracket, which means a higher %.
You will owe $162 this year because the low rate on the separate jobs under - withheld.
You may owe lots more for previous years with penalties if you did that separate thing then too.
2007-01-22 19:14:41 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Both incomes combined probably put you in a higher tax bracket. The IRS considers your total income in deciding how much you pay in taxes, not the income you make from each job separately. I also agree with the first answer that maybe you claimed too many dependents. Sometimes claiming yourself does count against you and can cause you to owe money
2007-01-22 19:13:06 · answer #3 · answered by Michelle F 3 · 0⤊ 0⤋
your adding 2 and 2 together. it looks at your TOTAL income for the year, not at each one separately. so, individually, you have not made that much money, if that's the only w-2 you had, but when you combine them together, you have earned more money and you have pushed yourself into a higher tax bracket, and you owe money.easy thing to do with more then one job. that happens to me, and thats why i claim no exemptions.
2007-01-22 19:08:10 · answer #4 · answered by Jen 5 · 0⤊ 0⤋
the more you make, the more you owe..it's simple really...be thankful it's only 162......next year change your W4 to claim 0 on the at least one of the jobs and then next year, you won't have to pay.....
2007-01-22 19:01:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
if you go to hrblock.com you can do a free tax return estimator. i used it last year and it was dead on for what i got for my return.
2007-01-22 19:06:49 · answer #6 · answered by blackbaloon1 2 · 0⤊ 2⤋