My husband and I both claim single zero on our weekly pay checks so we have quite a bit of money taken out. Last year we got about $1,500 back. We both made a bit more money this year and when we filed our tax preparer told us we were only getting back $70 federal and we owe over $300 to the state. I can't seem to understand why that would be. We have alot of money taken out of our weekly checks, plus when we itemized we had quite a few deductions since we remodeled our house last year. We file our taxes as married. Could the tax preparer have made a mistake???? Should I go to someone else and have them double check?
2007-03-30 02:23:38 · 5 answers · asked by pack513 4 in Business & Finance ➔ Taxes ➔ United States
It's very possible to owe even claiming zero allowances, especially if you both make a very good salary. But if nothing much changed from last year, but your taxable income changed by over $1400, then it's possible that something is wrong. You don't say how you stood last year with the state or what state you're in, so can't help you there.
Lay your copy of last year's and this year's return side by side, and see what line the difference is on. If making a bit more money is $5000 or so but around the same was withheld for taxes, that could explain it.
You talk about deductions for remodeling your house - except for the residential energy credits, that would not usually give you a tax benefit. But the energy credit would have been in your favor if you qualified for it, not something that took your refund lower. And did the prepaper list the telephone excise tax credit? Would only be $40, but it's worth claiming assuming you qualify, and you almost surely do.
Check the two returns, last year and this year, against each other, and you might spot what's different.
2007-03-30 02:38:15 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
In your question, you stated all items from last year were the same, except you both made more money(this year). You may have crossed into a higher tax bracket, which resulted in all your income you had earned up to this point now being undertaxed. And required a tax catch-up, eating up what would have been a return. You should find out where these brackets are.
2007-03-31 11:16:39 · answer #2 · answered by DRAGON 5 · 0⤊ 0⤋
You owe simply because you didn't have enough withheld from your pay. That is the very simple explanation to it all.
With a debt of $70 on your Federal return you're just about perfect as far as withholding is concerned. You're not making an interest free loan to the government and are taking home as much as possible on payday. If you want a refund you'll have to have extra $$$ withheld from your pay. IMHO, that's not a very bright idea though -- making interest free loans to the government -- but it's your money.
On the state end you probaby want to have a bit extra taken out. $6 per week between you will zero you out there to just ask your employer to withhold that much extra for your state taxes.
2007-03-30 10:18:45 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
maybe they aren't taking enough out for state...but seriously, if you have questions, definitely go somewhere else...i have gotten completely different answers from two leading tax preparation companies, and one of them has messed up people's taxes that I know on several occasions...and were not very quick or helpful in fixing them...based on that, they no longer have my business. DEFINITELY get a second opinion.
2007-03-30 09:37:05 · answer #4 · answered by Cinna 4 · 0⤊ 1⤋
i've been retired for 4 yrs, but after April 15th you should be able to go to an IRS office and have them look over your return to see if done correctly.
2007-03-30 16:12:14 · answer #5 · answered by Anonymous · 1⤊ 0⤋