I am going to owe about $600 this year. But my wife and I are both claiming Married 0 and having an additional $30 taken out. I have heard if you take out additonal money you will always owe. Is this correct?
2007-03-08 04:03:55 · 7 answers · asked by Dallas O 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you are having an additional amount it should decrease the amount that you owe.
To determine if you are having enough withheld for 2007. take yours and your spouses most recent paycheck stub and complete the withholding calculator from the IRS website, this should help guide you to what you both should be claiming on your respective W4's
http://www.irs.gov/individuals/page/0,,id=14806,00.html
2007-03-08 05:45:29 · answer #1 · answered by Anonymous · 2⤊ 1⤋
No, if you take out additional money, you will owe less than you would have if you didn't have the extra taken out. Your taxes are figured without regard to what you had withheld. Then your total tax liability is compared to what you had withheld or paid in estimated payments - if you overpaid, you get the extra refunded; if you underpaid, you owe the difference.
If two people are making similar salaries, and are fairly high income, this can happen. If you owe around $600, then try having an additional $12 a week withheld over what you are currently having taken out..
2007-03-08 08:54:59 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
It doesn't make sense to me that while each of you are claiming Married with 0 dependents and having an additional $30 taken out, that you owe money. There might other factors in your case. But if that's all it is, then it doesn't make sense.
I would check how much SHOULD be taken out of a particular check, based on the check amount. Then I would see if that amount WAS taken out. It's very possible that the bookkeeper at one of your places of employment has been screwing up and not taking out the right amount. People are known to make mistakes.
I would also check the amounts taken out of your paychecks, add them up, and see if they add up to the amounts on your W-2s. It's possible that there's an accounting error, and the W-2 doesn't reflect all the deductions.
It seems to me that someone not taking out the right amount or the W-2 not reflecting all amounts taken out is more likely than owing taxes when claiming zero dependents and having extra money taken out!
2007-03-09 18:23:42 · answer #3 · answered by Neil 2 · 0⤊ 0⤋
No, that's not true. The only reason that you owe is because you didn't have enough withheld during the year. You still need to have an additional $12 per week withheld between you. I'd suggest that you go a bit higher than that if you'd rather get a small refund instead of having to pay at all.
Paying $600 isn't all that bad, though. Since it's less than $1,000 there won't be any penalty for underpayment. It's like getting an interest free loan from the government -- the exact opposite of what happens when you get a refund!
2007-03-08 07:28:38 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 2⤋
If you made more than the withholding covers, you owe.
If you have extra withholding that goes towards your liability. "always owe?" that doesn't make sense!
2007-03-09 05:48:33 · answer #5 · answered by ? 4 · 0⤊ 0⤋
There are so many factors that determine how much that you owe, that you should really see a professional.
Simple things like ... What tax bracket are you in.....Did you receive a pay raise last year..... What contributions did you make to your retirement......etc.....etc...etc....
Take it to a professional, and who knows, maybe they can find a couple of deductions that you missed.....
2007-03-08 04:09:12 · answer #6 · answered by pnk517 4 · 1⤊ 2⤋
I cannot answer this, however some places have second opinion tax assessments, so consider stopping in one of those places if they do it for free and getting a second opinion. It might save you money.
2007-03-08 04:17:20 · answer #7 · answered by Luis 6 · 0⤊ 4⤋