Me and my wife claimed 0 on our w2's and we still owe $1000 to the irs Why are we still owe?

Answer 1

Separately you were in one tax bracket (say 15%), but together you are in a higher tax bracket (say 25%). If $10,000 of your joint income is taxed at 25% instead of 15%...bingo, an additional $1,000 in taxes.

Each of you can take out an additional $50 a month from your pay next year to avoid underwithholding.

Answer 2

There is something wrong. I Claim "0" and I always get money back. That's why I claim "0". You need to recalculate or get H&R Block or some other Tax preparer to check your return. You might have made to much $$$$ also. You can file with H&R Block online and it will cost you approximately $20.00. You can even get direct deposit. Try filing separately and see what happens.

Answer 3

Depends on your other income. My husband and I both claim single and we usually break even. We have no children, but do get a little bit of interest. One of you probably makes quiet a bit more than the other. This is usually what I see happen in this case.

Answer 4

Did you have income other than that shown on your W-2 forms?

If not, I wonder if you calculated the tax correctly. Did you take the right standard deduction? Did you use the right Tax Table?

You should probably go see a tax preparer.

Answer 5

You made to much $$$$--next year claim 0 + $x

Answer 6

It has to do with your personal exemption that you claim on your taxes, your income, and a lot of other things. It doesn't sound right but apparently, that's just how it's worked out for you. I say consult a CPA.

Answer 7

I don't know. If you get a dividend payment, you could owe. Otherwise you may have screwed up the calculations.

Answer 8

because you still made to much money. I had this problem so now I have my employer take out an extra 25.00 from every paycheck.