so, a little background... we are newly married (march '06), new homeowners (april '06) and now its tax time. I was going to do the taxes myself and was extremely excited for the "big" refund everyone was talking about but it told be we owe $900 dollars. Could that be?! we have interest deducted, and we both have jobs where taxes are taken out. i just can't believe that we would have to pay. any insight would be appreciated as to why that would be. like i said, i am new to this... thanks in advance!
2007-02-07 07:40:21 · 8 answers · asked by Lindsey P 1 in Business & Finance ➔ Taxes ➔ United States
There are so many variables in taxes that there is no way that anyone can answer your question without many more details, such as both of your incomes, the number of deductions you each claim on your W4, the amount of your itemized deductions, your interest income, etc, etc, etc.
If you owe too much, you may also be charged fines and penalties for not having enough witheld.
2007-02-07 07:47:51 · answer #1 · answered by jonmm 4 · 0⤊ 0⤋
More info would be required to determine whether it's correct or not. Check the number of deductions that you listed on your W4 forms with your employers. The more deductions you claim, the less tax you pay. If you have no children, you should be claiming Married and 2 or less - 2 will usually cause you to break even. If you claim 1 or 0, you will almost definitely get a refund, but you get more taxes taken out of your check also.
I recommend testing the waters to see which way is best for you. I would rather pay in a little at the end of the year than have the government earning interest on my refund!
2007-02-07 07:53:38 · answer #2 · answered by Mr. Knowitall 3 · 1⤊ 0⤋
Deepnds on your W-4s. You pay the same amt of taxes in total but W-4 determines when you pay. Stupid people get those big refunds because they claim single zero & give the govt an interest free loan all yr. Again - total amt of taxes is same no matter what you claim on W-4. Paying them later better than paying each week. House deduction way over-rated as only getting around 25% of the mortgage interst back & since you are given $11k deduction to start the % is actually much lower. If end up with $16k in deductions that is only $5k more than you would have gotten with no house so getting maybe 10% of interest back. That scenario is a common 1. Paying is good if done at the end of the tax period.
2007-02-07 07:55:49 · answer #3 · answered by vegas_iwish 5 · 0⤊ 0⤋
When you itemize your taxes, you can deduct your mortgage interest paid as well as real estate taxes paid (not sure if that last applies in every state). You can also deduct a certain percentage of utility bills and such if you use part of your home as an office. If your itemized deductions come out less than the standard deduction for you, though, you might as well take the higher standard deduction. As for having to pay, if you didn't have enough taxes taken out to cover what you would owe based on your income, then of course you have to pay.
I'd take everything to a tax professional and make sure you're claiming all of the deductions you're entitled to.
2007-02-07 07:50:58 · answer #4 · answered by Katasha 3 · 0⤊ 1⤋
Sounds like when you got married and changed your deductions at work from single to whatever, that something is screwy and someone's work isn't pulling enough out.
It might be worth the trip to a tax service to figure it out.- Usually the first year of marriage you do get more back, because as a single person, you were paying more in.
2007-02-07 07:51:05 · answer #5 · answered by juicy13500 3 · 0⤊ 0⤋
I would suggest a tax preparer...and get a list of all the deductions that you can itemize...there are way more than you can deduct that just the interest.....
2007-02-07 08:15:33 · answer #6 · answered by Shelly B 5 · 0⤊ 0⤋
depends on what you made did you file them already? Contact
www.shaydzofluv.com
2007-02-07 11:32:45 · answer #7 · answered by shaydzofluv 2 · 0⤊ 1⤋
really it all depends on what you made
2007-02-07 07:43:39 · answer #8 · answered by kizlynj 2 · 0⤊ 0⤋