confusion. did my tax estimation with taxact, turbotax and h&r block. they say the same thing but when I called the department of treasury (need there # again), they said I don't have any debts. help me! I really need my income tax this year!
2007-03-04 21:03:14 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Your question is not real clear. How do you get a refund if you owe?
If you called IRS (I'm guessing) to see if you owed them any money, how would taxact or turbotax know? Whatever you enter into their program is of your knowledge.
Need more info to help ya.
2007-03-04 21:09:27 · answer #1 · answered by bbrzt 4 · 0⤊ 0⤋
Uh, what refund? If you owe, then that means you don't get a refund. You only get a refund if you pay in more tax through the year than your total tax liability. If you owe, that means you paid in LESS than you should of, there's no refund, and you will have to pay the amount that you're short.
Check with your employer, and change your W-4 so more is taken out in 2007 so you don't have this problem again next year.
If you DID have a refund coming, then if you had any debts like overdue taxes, child support or student loans, the refund would be taken toward those. All they were telling you is that you don't have anything like that against you, not that you'll get a refund.
If you don't or can't pay the $1405 that you apparently owe for 2006, they'll set up a payment plan for you. If it's not paid off by next year, your refunds will be taken in future years to pay it, plus interest and possible penalties, if you have a refund coming in future years.
It's like if you went into a store and bought an item that costs $12. If you pay with a $20 bill, you'll get money back (your "refund"). If you only give the cashier $10, they'll still be standing there expecting the rest of their money.
Your taxes are more than you paid so far. So the IRS will expect you to pay the rest of what you owe.
2007-03-05 09:38:12 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
It sounds like you did call the IRS and they said that you have no debts, or in other words, tax liens against you that would take your refund, right? But the problem is, they don't at this point have access to your W2 and so they cannot even tell you at this point whether you owe taxes this year----ALL THEY MEANT WAS THAT YOU DON'T HAVE ANY REASON TO KEEP YOUR REFUND IF YOU HAD ONE COMING. I think you are confusing 2 separate issues here. If you did do your taxes online and they said you OWE the federal gov't this year, it means you did not have enough taken out of your paycheck all year, and now you have to PAY! So disappointing, I know. But, if you cannot afford the $$ all at once, they do have a payment plan that you can set up and you can make small payments each month to pay it off. Sorry for the bad news!
2007-03-05 08:52:01 · answer #3 · answered by MarineMom 6 · 0⤊ 0⤋
A refund means that you had too much money withheld from your pay and the IRS owes you. It isn't just a free check the government sends you in the spring.
If you did not have enough money withheld from your pay, you owe the IRS. Since you have gotten the same estimate from multiple programs, it is safe to say that you need to pay up.
Talk to your HR or payroll department and take a look at your W4. If you claimed a high number of allowances or "exempt" on your W4, then change it to a lower number or zero so that more money will be withheld. Your goal should be to break even at tax time----you don't want to owe but you don't want a big refund. If you set your W4 correctly, you won't have a refund in the spring but the "extra" money will be added to your paychecks throughout the year.
2007-03-05 08:55:51 · answer #4 · answered by TaxGurl 6 · 0⤊ 0⤋
You have no federal back taxes. That has no effect on this year's tax return.
The estimate for 2006 may be flawed, you may have left information off the estimator.
Do the actual return. That is the only way to see if you get a refund.
2007-03-05 10:30:01 · answer #5 · answered by ninasgramma 7 · 0⤊ 0⤋
even if you overpaid this year you may have underpaid from previous years. most programs like turbotax only factor in the current year. if you owe from previous years you had better get it sorted out and pay before they catch up and subject you to with holding and penalties. there is no substitute for doing lots of research to file your own taxes or having a legit accountant do them (software kits and mall places suck-they encourage you to cheat because they know you are the one getting stuck and not them if you get caught cheating).
2007-03-05 05:25:27 · answer #6 · answered by comic book guy 5 · 0⤊ 0⤋
If you owe $1,405 then you CAN'T get a refund this year. If you owe, you have to pay, pure and simple.
2007-03-05 05:48:41 · answer #7 · answered by Bostonian In MO 7 · 2⤊ 0⤋
no,if you someone owes you 20 dollars will you give them another 20 dollars??????????????
o and every department of treasury has a diffrent number depens were you live
2007-03-05 05:11:01 · answer #8 · answered by Anonymous · 0⤊ 2⤋