2007-02-02 03:36:25 · 8 answers · asked by gamy2121 2 in Business & Finance ➔ Taxes ➔ United States
0 and single, or 0 and married, either way your employer may not have taken out enough.
2007-02-02 03:39:16 · answer #1 · answered by David B 5 · 1⤊ 0⤋
I'll bet that you have more than one job, or another source of income other than your primary job. If you have a part time job, for instance, they will only withhold taxes based on the wages of that job. As the total amount of money you earn increases, you move up into a higher tax bracket.
Lets look at the lowest bracket for a single taxpayer, which is earning $0-$7550. The tax rate for that bracket is 10%. Now, the next bracket is for people earning $7550-$30650. Those people pay 10% on the first $7550, and 15% on the amount over $7550.
Now, if you had two jobs that earned $7550 a year and only claimed 0, both would withhold just enough federal withholding tax to cover your anticipated 10% tax liability. However, since your total income exceeds $7550, you'll have to pay an extra 5% of every dollar earned on the second job in taxes because the earnings from the second job kicked you into the next tax bracket. Now, this is a generalization, but still fairly accurate.
What you have to be VERY careful of is to find out at what income your employer has to start withholding taxes. Below a certain amount, the employer won't even withhold the amount needed for the 10% tax liability! I know this, because I work a weekend job, 16 hours a week making $9.75/hour. My employer is only required to set aside $2 as federal withholding tax! Think that's going to pay my taxes? Only if that were the ONLY job I had!
You have to fill out a new W-4 with the employer of your second job and have them withhold more money for federal taxes. I have my weekend job withhold an extra $20 a week for taxes just so I won't owe anything at the end of the year. Figure out how short you were, divide it by 52 and then have your second job employer withhold that much extra every week. That should square you and the IRS.
2007-02-02 04:00:05 · answer #2 · answered by peytonbarclay 3 · 0⤊ 0⤋
It is our responsibility as taxpayers to make sure our employer is withholding at the correct amount. This is best done by checking each pay check to make sure they are withholding correctly. Some companies don't have a clue as to what they are doing in tax matters. In past years employees who attempted to claim 0 as in dependents ended up with Exempt withholding. It was nice throughout the year, but come tax time, the sad news is one must pay in!
To get closer and insist your employer withhold correctly, go to www.irs.gov, "individual", withholding calculator. This will get you where you need to be.
good luck and blessing
2007-02-02 03:48:17 · answer #3 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
Do you work for several employers? If so, one or more of them will need to withhold more tax.
Are you claimed as a dependent by another tax payer? You lose your personal exemption if you are.
Do you have significant income that is not subject to withholding such as interest and dividend income? (Lucky dog if you do!)
Or did you just mess up your tax return and complete it incorrectly? Lots of folks do that; it's easy to mess up!
There are any number of reasons that you could be in that situation. Without knowing ALL of the facts and numbers in your case it's not possible to say why this happened.
2007-02-02 03:47:39 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If you have multiple jobs or lots of interest/dividend income. Each job would be calculating the taxes withheld based on an assumption that this was your only job. When you combine the amounts together it puts you in a higher tax bracket and the withhold is insufficient to cover. you need to manually select a higher withhold on the W-4.
2007-02-02 03:40:28 · answer #5 · answered by Shredded Cottage Cheese 6 · 1⤊ 0⤋
What are you claiming 0 on? Do you mean that you are claiming 0 exemptions on your W-4 for your employer? The fewer exemptions you claim on your W-4, the more tax is withheld.
You should carefully go through the instructions and worksheets on W-4 to see how many exemptions you are entitled to. Perhaps you are entitled to more exemptions.
2007-02-02 03:45:10 · answer #6 · answered by Take Responsibility 2 · 0⤊ 1⤋
You don't have enough deductions. You can always have your employer take out extra taxes to make up for it.
2007-02-02 03:41:16 · answer #7 · answered by lcritter55118 4 · 0⤊ 0⤋
How is it possible to have an absolute zero in any year?
2007-02-02 03:39:08 · answer #8 · answered by CoolFin69 2 · 0⤊ 4⤋