Why do I owe MD State Tax?

Question

Last year I received a $115.00 refund from Maryland State taxes but this year I owe over $600.00 and I can’t figure out why I owe so much. The only thing that has changed from last year is that I made $8,000.00 more.

I claim 0 on my checks
I made under $40,000.00
I have no dependents or anything to claim

Does anyone know why I would owe state taxes? I just don't understand why I owe when I claim 0 on my weekly check. I thought the whole point of claiming 0 was so that they would take out more taxes during the year so that you would'nt owe at the end of the year.

Any help would be appreciated!!
Thanks!!

Answer 1

You owe because not enough tax was withheld during the year, plain and simple. Check with your employer's payroll department to see how they are withholding on your MD taxes. You may need to reduce your state withholding exemptions or designate an additional amount to be withheld.

State and Federal withholdings are frequently different. Make sure that your employer has the right information from you.

Answer 2

The IRS has not something to do which includes your state taxes. The IRS is in cost of FEDERAL taxes in basic terms. each year, you could desire to report 2 tax returns -- one for the state, and one for federal. It looks such as you weren't doing all your state taxes. extra useful be certain you report them precise this year. You suggested the state comptroller's place of work advised you techniques plenty you owed, however the IRS sent you a letter and set up a fee plan. that doesn't make experience. Are you specific it became the IRS you have been paying? If it extremely became, then that became your federal taxes you have been paying on, and you may nonetheless owe besides the fact which you owe to the state.

Answer 3

I would think with 0 withholding allowances, you wouldn't owe unless you have income other than salary (e.g., bank account interest, dividends from stock, etc.) Because your company doesn't know about things like that, they're not included in the calculations. If you don't have more than a small amount of income like that, then check your pay stub or contact your payroll office to find out if you really do have 0 withholding allowances.

Answer 4

Its quite possible that your employer made a mistake. They may have adjusted your Federal withholdings and not adjusted the State.

You are completely correct on your assumption that zero is the most that can be withheld. Check with your payroll department and find out what your allowances are for state purposes.

For next year, take this years tax and divide by the number of paychecks you will be getting and have them take out this weekly amount for state withholding. You will then be "protective" for next year.

Answer 5

I'd check with your personnel department to make sure that you really do have the right designation on your dependents and then I'd start looking for things to do to reduce that tax for next year.