2007-02-04 11:31:50 · 2 answers · asked by stacypub 1 in Business & Finance ➔ Taxes ➔ United States
Most states have much lower deductions, and a lower percentage of tax. That is, for a couple, you might not start paying Fed taxes until you have made about 12,000 dollars. The state tax might start after about $4000 income.
2007-02-04 11:37:52 · answer #1 · answered by hasse_john 7 · 8⤊ 4⤋
I'd need more information then that to explain it, but it's not that uncommon. I'm assuming you have to pay in more now? Having a balance due instead of a refund?
Taxes are paid through the year out of your wages by the employer, a seperate amount for state and federal taxes. The most common reason people owe more money at the end of the year is due to not enough being taken out. So he probably didn't have enough taken out for his state, but enough for federal.
Another reason might be the type of credits (if any) you're getting on the federal. Alot of states don't offer the same breaks as the federal return.
2007-02-04 19:42:59 · answer #2 · answered by Treyot 2 · 4⤊ 0⤋