After filing my w2's I still owe a lot of tax, why? And don't be smart asses!?

Answer 1

guess you made too much, didn't have much taken out and don't have much in the way of deductions.

Answer 2

You need to make sure enough taxes are taken out of your check, If you are single claim 0 don't carry yourself during the year and do not ask your employer to exempt your check from taxes, both of those moves can make you liable for the late or underpayment penalty. If you don't pay the IRS upfront you will pay at the end.
There are two ways to lower your tax liability.
1. exemptions, If you file single your exemption is lower. Other exemptions are relatives who live with you and are dependent on you for support.
2. deductions. You lower your taxable income with itemized deductions, they must be significant meaning a lot of med bills, charity, or business deductions, profit & loss, etc they have a calculation that chips away at your deductable balance that's why you have to have a substantial amount. Rule of thumb: If your deductions are not significantly more than the standard deduction prior to the IRS calculation why bother. Other than that always check to see if the IRS is offering anything unusual that you can take. This year the IRS is offering a one time credit for the over billing of Telecom Excise Tax. This is billed on land lines, cell lines voip's etc., if you had long distance and/or bundled services you can claim the credit for 2003, 2004, 2005, and 2006 on a Form 8913. No joke. You cannot file for this credit in 2007 so since you filed your taxes already you can always amend your taxes but it is best to wait until the original is processed.
If you can't pay the full amount of what you owe you can file a Form 9465 requesting an installment agreement. You do have a $105 fee but that is better than waiting for them to contact you by then you have accumulated penalties on top of the interest they will charge anyway. Hope this helps : )

Answer 3

Because when you were deciding how many exemptions to put down, and whether to claim married or single for withholding, you didn't comprehend how much you really needed to put away for taxes.

If you have few exemptions, no mortgage, no dependents, no tax credits, and your W-4 withholding form is married with 2 dependents, you will under-withhold greatly.

There is a form available on the IRS website where you can key in information and they'll advise you what to put on your W-4 withholding form - that way, this time next year you won't face the hefty tax bill. I posted a link for your convenience - check the schedule out on page 10.

Answer 4

1-Employer may have miscalculated the amount to be withheld [as one employer did to me]; 2-You claimed too many exemptions. [The back of the W-9 withhholding form seems to direct you to claim TOO MANY exemptions, I've found!]; my wife and I must claim FEWER exemptions than allowed to avoid paying; 3- Do you have investments /investment income [which is typically not taxed at distribution?] 4-Are you claiming 'married' status if you are non-married? 5-Are you into the AMT [alternative minimum tax], which changes things drastically?

Answer 5

My guess is you have more than one job. If this is the case you need to have extra with holding taking out from at least one of them. However i would recommend in any cane that you claim single and zero dependents on all w-2's. Good luck.

Answer 6

it depends on whether you filed anything tax deductible such as rent, schooling,or job-related expenses and if you claimed zero for that prior year that gives you more money back since they take more out through the fiscal year

Answer 7

Not enough withholding and/or not enough deduction. Sorry but it's very simple! Withhold more in 2007.