Last year I started working in July and my husband was self-employed and we ended up oweing a lot in taxes, even though I filed 0 and at higher rate. This year I'm still at higher rate and my husband is looking for work and I will be getting a second job. How should I file for next year's taxes so we don't end up oweing as much as last year?
2007-06-06 04:56:27 · 13 answers · asked by angel_nm03 1 in Business & Finance ➔ Taxes ➔ United States
If you are referring to your W-4 withholding form, you can fill it out with anything you want, it only affects the taxes they WITHHOLD from your pay. If you claim 'single, 0 allowances' or 'married, but withhold at the higher single rate', they will keep more, lowering the amount of taxes due when you file. The more dependents you claim, the less they take out. When you file, it is usually to your advantage to file married, jointly as opposed to married, filing separately. You can also ask that they withhold an ADDITIONAL amount of your choosing -- figure whatever you had to pay last year divided by the number of pay periods per year, and you should come close to breaking even. Good luck!
2007-06-06 05:09:30 · answer #1 · answered by green_eyed_lady 2 · 0⤊ 0⤋
Married Filing Single Rate
2016-10-30 06:13:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2016-12-20 04:18:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you want your withholding to cover the taxes on your husbands self-employment income, you can request an additional amount to be withheld on line 7 of your W-4. The 'quick and dirty' method would be to divide the amount you owed last year by the number a checks you receive each year and use that number. Since we are almost half way though this year, you may want to double the number.
If your husband was not self employed during 2007, the withholding calculator on the IRS website will help you adjust your withholding. If he is still self employed, you may have to estimate taxes on his self-employment separately. I don't see a place for self-employment on the withholding calculator.
2007-06-06 13:47:31 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
File Married, the reason you owed so much is due to your husband, he never paid anything in so he owes it all at the end, I would suggest that your husband look at all his expenses that he had for his self employment and make sure he reported all of them (gas, mileage, tools, work clothes, etc), anyway like I always tell people have the governmant take out more throughout the year that way you wont owe at the end, lets be honest, if you lie and get a little extra every month are you really going to save it for when its due at the end of the year, it doesnt matter how much they take out during the year or that they tax bounses higher, in the end you have a total number and they calculate tax on that, if you paid more that the calculated amount you get a refund, if less then you get a bill, NEVER LIE TO THE IRS, AND YES FALSELY FILLING OUT A W-4 IS LYING TO THEM, they want their money
2007-06-06 05:12:14 · answer #5 · answered by losing@30 2 · 0⤊ 2⤋
You probably owed a lot because he was self-employed. If he's been off much of the year, then you probably won't get hit too hard this year. Warning - if he got any unemployment compensation, that's taxable income. Leaving everything at married zero for this year, your current job and any other jobs that you or he get, will probably be OK. In 2008, if you're both working, you might want to withhold some extra.
Good luck.
2007-06-06 05:10:43 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
The Govt does not consider you a liar if you file as 'single' when you are actually married. You're not telling them your marital status; you're telling your employer the rate at which they should withhold takes from your paycheck.
If you don't have the self-discipline (it's very hard - I don't) to save on your own for taxes, have your employer withhold the higher rate. If you have the self-discipline (good for you), withhold at the lowest rate, and don't give the Govt an interest-free loan of your money until you get your rebate.
2007-06-06 05:06:43 · answer #7 · answered by ashby 2 · 0⤊ 0⤋
Always file as married filing a joint return. You get more money back this way.
If you are married, you are married. You are not single !
If you want, you may file as married filing separately. You will pay higher taxes, this way most of the time.
2007-06-06 05:46:27 · answer #8 · answered by kenneth h 6 · 0⤊ 0⤋
If you are referring to 'filing' your W-4 form, and not filing your taxes, then you can use the calculator at www.irs.gov to figure out the correct status and exemptions to use: http://www.irs.gov/individuals/article/0,,id=96196,00.html
In addition to filing Single, 0, you can also ask to have additional tax withheld.
Or you could make quarterly estimated payments based on your husband's income.
2007-06-06 07:09:35 · answer #9 · answered by aj485 5 · 0⤊ 0⤋
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2017-02-17 19:35:57 · answer #10 · answered by ? 4 · 0⤊ 0⤋