They Only Withheld $200 From My Federal Income Tax Last Year!!??

Question

And They Withheld $2434 From My Wife.
We Currently Pay A Mortgage On Our House, And Have No Kids..

Will I End Up Owing?
How Should We File To Get The Most Money Back?

Answer 1

Instead of paying a crap load of money to H&R Block, you should do them yourself on the internet. Just go to taxact.com or something like that and all you have to do is fill in your info.

Here is a link that will tell you the amount they should take out.
http://www.irs.gov/individuals/article/0,,id=96196,00.html

Answer 2

There are a couple of things: First income taxes were reduced because of the $800 work tax credit. Second is when you changed your W-4 and took 1 exemption. When you change your W-4,you have to allow for the number of paydays left in the year. You could have left your W-4 alone and then take the exemption for your wife on a Married-Joint return and set some money aside during the remainder of the year to help cover any additional taxes. Some married people indicate Married on their W-4 and then check the "Withhold at Single Rate" and take zero exemptions. This allows the most money to be withheld during the year. You can estimate your gross income and tax liability for 2010 and divide the tax into specific amounts to be withheld from each pay period or paycheck. Then monitor your income and taxes during the year plus put some aside in a savings account during the year as a safety net if you should fall short. If you overpay the taxes,you saved some money plus interest and you can put some or all of your refund into the savings account. The IRS wants the taxpayers to get their W-4's set so that they do not get a refund or owe additional taxes. You did not state if your wife had any income for 2009. If her withholdings were low,that would also cause you to owe the IRS since both incomes are combined on a joint return to create 1 tax liability for the 2 of you.

Answer 3

How did that happen? Did your W-4 get messed up somehow, the form that tells them how much to take out? Check on that so it doesn't happen again for 2007.

If you worked part of the year as an independent contractor, you'll get a 1099 for that income. If that's the case, they would not have taken out any taxes for that income, and you'll have to pay it with your return unless you've been filing quarterly estimated payments. You'd also have to pay 15.3% self-employment tax, which is for social security and medicare.

You will very possibly end up owing, but there's no way anyone can really answer that without knowing the total that you and your wife made, and what type of income it was (W-2 wages, 1099 self-employment, other 1099, or whatever else.

You will still almost surely do better overall by filing a joint return.

If your total income between you was under about $40,000 for the year, look for a VITA site near you - they'll prepare your taxes at no charge, and will know how to deal with all this. You can find info on the program at irs.gov.

Answer 4

I agree go to Taxact on internet works pretty good. You do not have to do it all at one time. and if you owe you can wait till April to file and it only cost $15 for fed and state. Good deal

Answer 5

Why don't you go to H&R Block or something...they'll be able to help you.