ok here is the scenario:
My gross pay per year is $70,000. After taxes I receive only $2000 every bi-weekly. So gov is chewing off about $695 every bi-weekly from my paycheck.
(1) I am single
(2) I don't own house
(3) Fed allowance I claim is 1
I am sad and crying, please help!!!!!!!! How would I save money? Will I get money back at the end of the year?
2007-01-31 06:02:53 · 9 answers · asked by lol 1 in Business & Finance ➔ Taxes ➔ United States
Is Bush democrats or republican?
2007-01-31 06:22:30 · update #1
Vote Republican.
2007-01-31 06:09:23 · answer #1 · answered by Rob D 5 · 2⤊ 4⤋
You are correct on all counts, except the Fed wouldn't allow it because it would still have to loan the government the money they needed to operate and then lose the extra money the tax payer pays in. Another way is to change the tax code and go to a flat tax across the board. If we had a flat tax rate at of 17 to 22% on all income with no deductions, they would make more money than they do now, with the middle income people carrying the load. The state didn't have a state income tax when I lived there in the '80's and through sales and tourist tax only they had some of the best roads and schools, fire and police and reserves than any other state, proving that a state does not need the income tax. Just before I moved to Texas, I lived in Kentucky and they had income tax and the same sales tax as Texas but had some of the lesser kept up roads and nearly no reserves. This proves that an income tax is the lesser part of a revenue base.
2016-05-23 23:15:56 · answer #2 · answered by ? 4 · 0⤊ 0⤋
First, make sure you are getting every legit deduction. Try one of the tax prep programs that has "what if" info. You may discover some new ones.
If you received a large refund last year with similiar income, you are allowing too much withholding, so you can increase your number of dependents on your withholding declaration and receive the income during the year instead of letting those swine in Washington use your money interest free until you get it back as a refund.
Owning a house would help greatly, if it is at all feasible. Another possibility instead or in addition would be to acquire a rental property. Even if you only break even on it, you can depreciate it against your current income. For example, a 100K rental depreciated at a 15 year rate would give you a 7K tax deduction.
2007-01-31 08:36:28 · answer #3 · answered by Jack D 2 · 0⤊ 0⤋
Quit wining.
Invest in a 401-K, the money is pre-tax, and they will charge less taxes off of your check.
2) I claim single-1 on the Fed, Single and 0 +$10 extra on state, and end up getting back about $300 from both every year. Cali is notorious for underwithholding on your taxes.
2007-01-31 06:12:47 · answer #4 · answered by Mazz 5 · 3⤊ 1⤋
I have 3 kids, a wife and a mother in law to feed,house,provide for. my gross pay is just over 40K and my biweekly paychecks are in the 1500 range so quit crying.
Things you should do to save on taxes would be:
- get married and have kids (just don't do it only for tax reasons)
- have the maximum allowed amount deducted from your paycheck to go to your 401K or IRA or whatever retirement plan you find. (if you don't have one, get one).
- Buy a house... You're making 70K and not buying a house? what the heck is wrong with you? I wish I could afford to buy a house. It might not be the best tax break, but it's better than nothing.
- Do you pay for student loans? the interest is deductible
- Give more to charities
And to second Rob's answer.. vote something other than Democrat/Liberal. Enjoy your lower tax rate while you can because next year they'll be raising it for sure since the
Demo-Tax-a-crats are back in Congres.
2007-01-31 06:13:23 · answer #5 · answered by Anonymous · 3⤊ 2⤋
Always claim 0 at your work, they take more out of each check, but you don't end up owing at the end of the year. Change your claim at work to 0. Think about buying a house, it would be a good investment and you get to deduct the intrest you pay! You are getting nothing from renting, except receipts!!
2007-01-31 06:14:13 · answer #6 · answered by wish I were 6 · 0⤊ 1⤋
Don't expect the current Congress to reduce your taxes. They are busy trying to reverse the recent tax cuts retroactively.
Your best bet would be to marry, buy a house and consult a financial adviser.
Good luck with that!
2007-01-31 06:10:52 · answer #7 · answered by Suzianne 7 · 2⤊ 1⤋
Are you sure that $695 is all taxes? You don't have health insurance?
2007-01-31 08:59:12 · answer #8 · answered by growing inside 5 · 0⤊ 0⤋
I would recommend cheating. People rarely get caught and you can get almost all your paid taxes back if you do it right.
2007-01-31 06:08:10 · answer #9 · answered by Josher 3 · 1⤊ 7⤋