I am using taxcut.com and doin' it myself (again...zzz) and for the past few years I've owed a lot more state tax than federal -- this year Illinois wants four times as much as federal! Am I doing something wrong here? This doesn't seem to add up. Any words of wisdom appreciated :)
2007-04-11 18:02:26 · 6 answers · asked by fozzydog 1 in Business & Finance ➔ Taxes ➔ United States
For mose people, federal is more than state, But if you are fairly low income, especially if you have a dependent child or two, you'd probably pay very little federal tax, so state might be more. With a flat rate of 3% in IL though, still seems awfully strange unless you pay next to no federal tax, and maybe get EIC.
And be sure you're looking at total tax including what you had withheld, not just at what you had to pay when you filed.
2007-04-11 18:48:01 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Most times federal taxes are much higher than state taxes. It would not be a bad idea to have a professional check them for you.
Illinois is one state that does allow you to take an Earned Income Credit on your return. If you qualified for EIC on your federal return, you may qualify to also take the credit on your state. With this said, most Illinois residents end up with a significant lower tax on their state return as compared to their federal.
2007-04-12 02:10:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, you could deduct the 2012 State earnings Taxes on your 2012 Federal 1040. And, any refund from the state will strengthen into taxable earnings in 2013 on your 1040 thinking the reality which you obtain a deduction on your 2012 one hundred and 40 return.
2016-12-09 00:49:49 · answer #3 · answered by keeven 4 · 0⤊ 0⤋
Maybe if u think you have done something wrong u may need to go and let a professional re check it for you and maybe they find u some more deductions or something to help u out!! Also, I don't know ur situation but maybe you need to change the number of dependants you claim at the beginning of the year or i dont know. Talk to someone who knows more about ur situation and can give u some tips on something u can do the year ahead so as u dont have to pay in so much.
2007-04-11 18:22:27 · answer #4 · answered by sash 5 · 0⤊ 0⤋
In general the federal is more tax than the state.
But maybe some states are different.
2007-04-11 18:08:59 · answer #5 · answered by J.R 1 · 0⤊ 0⤋
Are you talking about what you have to pay, or your total tax liability? I can't imagine that your state liability is greater than your federal. That just doesn't normally happen.
2007-04-11 18:26:22 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋