I am a single professional who earned about $41K last year. I claim nothing on my W-4 and even have an additional $6.00 taken out of every paycheck. But when I punched in my figures to a reputable tax preparers' website, it says I am getting back $69! That's all! I don't think I made an error (1040 is pretty straight-forward). Am I just in a bad tax bracket or what?
2007-02-13 05:04:53 · 5 answers · asked by awilliams365 1 in Business & Finance ➔ Taxes ➔ United States
I am a single professional who earned about $41K last year. I claim nothing on my W-4 and even have an additional $6.00 taken out of every paycheck every two weeks. But when I punched in my figures to a reputable tax preparers' website, it says I am getting back $69! That's all! I don't think I made an error (1040 is pretty straight-forward). Am I just in a bad tax bracket or what?
2007-02-13 05:30:24 · update #1
Based on my computations for a single person with no withholding allowances there should have been $6262 (plus the $6 each payday) taken out during the year.
With single and one exemption with no other income and the standard deduction your tax would be $4701.
Obviously something is wrong. Check my estimates against the actual withholding and your total tax and see where the difference is.
BTW: If the only problem is that less than you expected was withheld what is the problem? You don't owe anything and had the rest of the money all year to invest.
2007-02-13 05:17:33 · answer #1 · answered by Barkley Hound 7 · 0⤊ 0⤋
On your W-4 are you claiming S-0 or S-1? There is a difference with what is taken out for your withholding- even with the additional 6.00.
2007-02-13 13:14:19 · answer #2 · answered by kam 5 · 0⤊ 0⤋
I suspect you don't understand what you did. You came within $3 of the perfect tax situation, neither paying too much nor too little. If you had not done the extra $6 (you don't say if your pay period is weekly, biweekly, monthly or what) if a month, you would have owed $3 in taxes.
If your thought was to overwithhold so you would get a huge refund, you better not be a CPA or bookkeeper, because you clearly failed miserably.
2007-02-13 13:23:18 · answer #3 · answered by thylawyer 7 · 0⤊ 0⤋
How much does your W-2 show you had withheld? That doesn't sound right...the $69 refund. What are the box 1 and box 2 amounts from the W-2?
2007-02-13 13:10:44 · answer #4 · answered by aku_aku78 2 · 0⤊ 0⤋
No, that doesn't sound right at all. Did you remember to subtract your standard deductions. I think they add up to $8450.00 for single this year.
Since you have a straight forward situation, why don't you go to IRS.gov and look up the tax tables and do your own by hand.
2007-02-13 13:12:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋