I am having to pay taxes again, what am I doing wrong?

Question

I am a single woman with no dependents and I work two jobs. It seems my employers aren't taken enough taxes out of my wages. For 2006 I claimed 1 for my full time and 0 for my part time, any help or advice? I have changed my status to 0/0 for both jobs this year but don't know what else..... It seems each year the amount I owe is getting higher and higher..... HELP?!?

Answer 1

The problem is that you are working two jobs. When you file Single 1 and Single 0 at those respective jobs, each job's withholding assumes that the income you earn there is the only income you have for the year. When you file your returns, you are adding both incomes together and that throws you into a higher tax bracket. What you need to do is to increase your withholding. On the Form W-4, you should complete the worksheet on page 2 of the form for dual incomes. This will figure out how much additional tax you need to have withheld. You might have to set your withholding to Single 0 plus $x additional per paycheck.

Answer 2

Many people find themselves owing money at tax time when they hold two jobs at the same time. Each job takes the correct amount for what they pay you, but when combined, the income puts you in a higher tax bracket.

To fix this, claim single/0 exemptions on both jobs. This should have an effect of around $6-$10 per week extra tax on your full time job. If that won't be enough, have an extra amount withheld each payday. Line 6 on the W-4 form is where you put how much extra you want withheld.

Answer 3

What you are doing wrong is that both jobs are assuming they are your only job, and taking to much money out at a low rate. They have to do this based on the withholding tables.

i.e. say income from 0-$10,000 is taxed at 10%, and income from $10,000-$30,000 is taxed at 20%.

Say you make $15,000 at each job. They each withhold $1000 for the first $10,000 of income and $1000 for the next $5000 at 20%. So you've paid $4000 in withholdings.

But the problem is, you owe $5000: $1000 for 0-$10,000 at 10%, and $4000 for $10,000-$30,000 at 20%. You owe because both companies withheld to much out at the 10% rate.

You can change your withholdings to withhold more if you had 0 deductions to counteract this.

Answer 4

Changing to zero allowances might take care of it. If it doesn't you can ask one of the employers to take out an extra amount each pay period.

If you already changed to zero allowances, look at how much your net paycheck went down, and multiply that by the number of pay periods each year. If the number you get is larger than what you owed this year, you're probably OK for next year unless you make a lot more money.

Answer 5

This same thing happens to me year after year. When you make a little more over $100 per week, the government wants 75%. Work in a Mickey Dees earning $10k per year and you could own a home, have it furnished, go to school for free and pay less than $300 in taxes but get back 5 grand in tax returns. I'm seriously contemplating tax evasion for as long as I can just to survive.

Answer 6

The Tax and Spend" provision interior the form looks to have not any barriers related to what can or can not be taxed. The ultimate courtroom purely gave limitless means to the federal government from this very unpredicted source. I actual have been on the fence yet contemporary subjects stress me to section with the Conservatives. I doubt i would be the only vote won at present for Mitt.

Answer 7

It may depend on where you get your taxes done at. If you use a major company like H&R Block or Jackson Hewitt, you'll always owe a lot of money and not get anything back. If you use a personal accountant or an independent person that handles tax returns, you'll more than likely get a large chunk of money back. To be honest, it really depends on who prepares your taxes. I saw a show last week where a couple took their taxes to 5 different preparers and got 5 different tax return results. Good luck!

Answer 8

raise your federal withholding so they take out a little more

Answer 9

STOP MAKING SO MUCH MONEY. you can buy a house, adopt a child, donate to churches, goodwill, and quit one of your jobs. seriously.......