I e-file and every year I get a return, but this year it says I owe about $350 fed. I held a few jobs last year all w2. I have checked all my fields many times. It seems I entered everything okay. What is going on here?
2007-03-03 16:53:20 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Your employers did not withhold enough taxes, this often occurs when people work more than one job.
On your w2's claim a lower number, or have one employer withhold more for taxes.
The reason this occurs is that each employer assumes a certain amount will end up being exempt from taxes so they don't withhold that.
2007-03-03 16:59:11 · answer #1 · answered by Vegan 7 · 0⤊ 0⤋
It's definitely possible, especially if you have multiple jobs. Each job takes out withholding without knowing about the other jobs. If you just have one job, the first $8450 (if you're filing as single) doesn't end up taxed, because of your exemption and standard deduction. But if you have multiple jobs, you don't get that amount untaxed for EACH job, just for the total, but essentially nothing is withheld for the first $8450 on each job even though it gets taxed when you add everything together and file your return.
Unfortunately, it's probably not something you're just entering wrong, but you probably really do owe it. If you're going to have multiple jobs again this year, increase your withholding so this doesn't happen again next year.
2007-03-04 01:47:45 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
That's not a very big bill. Be thankful you're not Bill Gates.
What happens when you have several jobs is that you make very little with each part time and get little or nothing withheld. By the end of the year, they're large enough combined that you owe a little.
Make sure your total gross wages is correct, and your total federal withheld is correct. After that, it's just a game of finding all the credits and deductions you qualify for.
2007-03-04 00:58:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you're income reaches a point where you're in a different tax bracket than you were accustom to being in... and your tax payouts were not equal to what you owed... then YES, it svery possible you owe taxes.
Its not uncommon. I got hit like that once.... and owed $26.
A lot of people OWE taxes at the end of year, despite how much they paid in already.
Welcome to good company.
2007-03-04 01:00:06 · answer #4 · answered by bakfanlin 6 · 0⤊ 0⤋
what probably happened is that your employer did not withhold as much as they were supposed to.. its possible that the income you received between your two jobs put you into a higher tax bracket, one that each of your employers did not realize you would be in (since they are only thinking that you are going to make what they are paying you)
thats what i imagine happened, but our tax system is so messed up its hard to tell
2007-03-04 00:58:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, it depends how you file your return. It's common that someone would owe or they did something wrong and have to pay a penalty fees or fines.
2007-03-04 01:02:26 · answer #6 · answered by FILO 6 · 0⤊ 0⤋
if you dont pay enough taxes during the year they will expect for you to pay for it in the end of the year, its stupit! but for your case i think you might have done something wrong in the past so check your last years tax return!!
2007-03-04 00:57:15 · answer #7 · answered by b_yavalar 2 · 0⤊ 1⤋