when filing income taxes why do i always end up paying and not getting refund?

Answer 1

You need more deductions such as kids,,wife,,,mortgage, anything you can deduct from your income.

Answer 2

It really depends on a vast number of possibilities.
Assuming you are not self employed...
1.)You are not having enough taken out of your paychecks to be applied toward your taxes.
Perhaps you should fill out a new W-4 with your employer
and
A.) reduce the number of exemptions you are claiming- the lower the number the more that is taken out.
or
B.) request that additional funds be taken out. You can specify a dollar amount to be taken out and applied to your taxes. Consider the amount you owed in taxes the previous year and divide it by the number of pay periods you have in a year.
For example: let's say you owed $500 and you get paid every other week (365/ 14 =approx. 26 paychecks in a year) You would then divide $500 by 26. ($500/ 26=$19.23) This would mean that you should request that about $19 more per check should be applied to taxes.

2.)Perhaps you are not taking advantage of write offs/ or credits that you are entitled to.-Are you a student? Are you a home owner? Do you have high medical bills?

One last thing. Do you really want a tax 'refund'? If you are entitled to a tax refund then you actually overpaid. You should think of it as Uncle Sam was merely holding your money for you. He got to use and invest as he saw fit while gaining the benefits of the use of that money.
Also, you should think of it as getting your money back- not a gift from the government ( it was your to begin with).


I hope this helps. If your taxes are complicated then you really should seek the advice of a professional.

Answer 3

If you are only paying a little at tax time, then you are having about the right amount withheld. The important thing is your total tax, not your refund. If you have an extra $500 a month withheld, you'd get a refund of $6000 less whatever you'd otherwise have to pay, and the government would have had free use of your money all year. Doesn't sound like a good idea.

Answer 4

It could be a number of things. The best thing to do is go to Human resourses department of your company and change yourself to "0," so that more taxes are taken out throughout the year, ensuring that you get somewhat of a return. Also save all over your receipts. If you have job where you travel a lot and are unable to eat correctly, you can use the food you eat as a deduction, also the ideas you purchase for work. However, it could be a number of things that cause you not to receive a refund. For, I've always filed as 0 throughout the year and once it comes tax time, I've always received a refund of good amount. The best thing to do is personally speak to a tax advisor or a CPA.

Answer 5

Most likely your employer is not withholding enough tax from your paycheck. If you claimed yourself when flling out your W4, then you will not have as much tax taken out of your check. If that isn't enough, you may want to look into paying quaterly estimated taxes this way you dont take a huge hit at the end of the year.

Answer 6

Judy (answer 4) gave the best answer you will get. If you wish to adjust your withholding to come closer to your actual tax, the IRS provides a good calculator for deciding what to claim on your W-4.

Answer 7

If you don't have any any deductions it will hurt you. Because when you get paid you get most of your money then. Check with your payroll dept. and look at your W-2 form. You might need to change it. If you have a kid and not married select S-1 If married with child Select M-2 and so far on.....