I noticed that my federal taxes paid were exactly 10% of my income. Could this be the reason why? i never asked for a certain percentage to be deducted.
2007-04-07 12:01:07 · 9 answers · asked by Serendipity 2 in Business & Finance ➔ Taxes ➔ United States
Adding more info...I had one standard W2. Only made $49000. No 401k. No special deductions. My check says 10% next to federal.
2007-04-07 12:42:45 · update #1
You are in the 15% tax bracket, therefore you will pay about 15% of your income in federal taxes. Your company took out too little. For 2007, change your W-4 to take out additional 5% of your paycheck.
2007-04-07 14:03:15 · answer #1 · answered by Steve R 6 · 1⤊ 0⤋
As others have noted, you'll owe a few hundred when you file. And as it appears that it will be less than $1,000 there will not be any penalties for underpayment as long as you pay in fully by April 15, 2010. Assuming that you have set aside the money for taxes, or can set it aside between now and April 15, 2010, what you are doing is both LEGAL and a smart money move. When you get a large tax refund from the government it represents an interest free loan that you gave to the government. You've turned the tables and have taken their money legally. I shoot for a debt of between $500 and $900 every year as I personally HATE lending the government money. And one year, using one of the safe harbor exceptions, I was able to delay paying a 5-figure tax debt for nearly a year without penalty and pocked nearly $5,000 in profits by investing that money in the interim! So, yes, you will owe when you file. But ignore the folks who say that you are doing anything illegal. As long as you owe less than $1,000 when you file and pay it on time, the IRS won't pester you at all!
2016-05-19 21:32:37 · answer #2 · answered by brook 3 · 0⤊ 0⤋
Did you cash out a 401k? Stock options? Did you have other sources of income or more than one job? Do you have self-employment income? None of these situations are accounted for when your payroll withholdings are calculated. If you expect your income to be substancially the same next year, you may need to consider paying estimated taxes each quarter or ask your employer if additional federal income taxes can be withheld from your pay.
2007-04-07 12:37:31 · answer #3 · answered by r2mm 4 · 0⤊ 0⤋
Most likely you have more than one job or you're married filing a joint return and one of you makes substantially more than the other. Or you could have significant income that is not subject to withholding such as self-employment income or dividends and interest.
2007-04-07 12:24:09 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You company either made some accounting errors on your pay or you do not have enough deductions. You make too much money so you might be better off itemizing.
2007-04-07 12:09:34 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Calculate your taxes again. You may have done something wrong.
2007-04-07 12:09:43 · answer #6 · answered by Brianna's Mommy 4 · 0⤊ 0⤋
depends on how much income you had. The fact that you are not claiming yourself as a dependent is also working against you.
2007-04-07 12:09:45 · answer #7 · answered by Just Gone 5 · 1⤊ 2⤋
I'm paying $6K in a few days and need to pay another $2K estimated...not much sympathy from me
2007-04-07 12:09:30 · answer #8 · answered by bombaybubba 3 · 0⤊ 3⤋
Seems to me like you make too much money!
2007-04-07 12:06:16 · answer #9 · answered by Anonymous · 0⤊ 3⤋