Tax help! Why do my hubby & I always pay more federal taxes?!!?

Question

Every year, we get the shaft and have to pay...and it's always a lot (federal taxes). What are we doing wrong? We don't make a lot, it's just me and my husband. We used turbo tax so we are just plugging in numbers. Our mortgage interest didn't even help us. Should we be filing married/filing separatly? It sucks! The last time we got money back was when we had an apt! (years ago!) Any clue as to what's up? And can they take more out of paychecks so it is not such a "shock" come April?? Any tax professionals out there? Thanks!!

Answer 1

Assuming you are doing your taxes correctly, you are probably not having enough tax withheld from your paychecks. Get a copy of a W-4 (you can go to www.IRS.gov) and go through the worksheet to determine the proper number of withholding allowances. Then you can give a new W-4 to your employers to change your withholding.

My experience with Turbo Tax is that it is pretty accurate if you follow all the steps and answer all the interview questions. If you didn't take advantage of the interview and the various help sections, then you might want to go back and redo your return.

Another alternative is to take your return and your tax info to a tax preparation service (H&R Block, Jackson Hewitt, etc.) and ask them to review it for errors. Negotiate a fee before they do any work!

Answer 2

Turbo Tax stinks unless you only have a couple of W-2's. If Turbo tax is not allowing you to use your Mortage interest, which it most likely is not, then you need the help of a tax professional. Get a free estimate done or have a Tax Pro check your return I bet you and your hubby have missed out on a ton of deductions because Turbo Tax can't handle to much info. Looks like you saved a little money by not going to a tax pro but lost A LOT of money useing Turbo Tax.

Answer 3

Why are you getting the shaft? You pay tax on your income. By paying each April, it means you just didn't pay enough during the year to cover your whole bill. If you wish to have more taken out, you can, you can search for more deductions. You most likely should not be filing separately given your details. Finally, do you realize if you get a refund, that means the government has been holding your money (without interest)?

Answer 4

If you always have to pay a large amount, you should have more taken out. Don't file separately - that will almost surely end up with you paying more.

Check your W-4 that you have filed with your employer, and have them take out enough more each pay period to cover what you owe this year. That should bring you pretty close to breaking even next year unless something changes drastically.

Answer 5

Yes, you can have more withheld from each paycheck. Ask your employer for a new W-4 and read the instructions carefully when you fill it out (including the back of the form). That way you can ensure you have the right amount taken out.

Answer 6

Less than 10k file seperatly... And I help do my parents taxes.... (I'm 14 btw)... My parents have had bad things happen with Turbo-T sometimes and switched to H&R Block and have done better.... And I bought H&R Block stocks so when ppl come to their senses i'll be rich

Answer 7

Go to your employers and have them take a few more dollars out of each paycheck. I won't hurt so bad come April 15.

Answer 8

Reevaluate your exemptions & change them for federal and state. You might consider using a good tax preparer (not one of the franchises). It will certainly cost more than TurboTax, but he/she may save you a lot more than the cost of services, compared to doing it yourself. Ask around for referrals. Tac professionals are up to date on all the current tax laws, and they can interact with you and your specific situation better than a computer program.

Answer 9

if your total deductions are less than 10K, you should file married filing jointly standard deduction. have kids if you want to ever get money back. its how the world goes round.