Every year when I file taxes for some reason I have to pay uncle Sam $3000 and new york state $600. I don't make much money around $40000 a year. I don't know why is this. I'm single with no dependents and a renter. It really kills me. What do you guys think?
2007-09-14 10:26:12 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I know that you're not having enough tax withheld from your pay, pure and simple. Without knowing how many withholding allowances you're claiming on your W-4 it's not possible to advise you exactly. You could have them withhold an extra $60 per week (or $120 bi-weekly) on your Federal and about $12 for NYS and you'd be good to go at filing time.
2007-09-14 13:21:35 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
That's why you pay uncle sam the 3,000 and NY $600, because you are single with no dependents and being a renter. I'm attaching a paycheck calculator website, www.paycheckcity.com, to help you figure out what you should be having taken out of your paycheck for both federal and state taxes.
2007-09-14 12:59:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It sounds like you need to have more withheld from your paychecks so you come close to breaking even at the end of the year. Your federal income tax on that income should be around $4600 a year. I don't know what you're doing on your W-4 to only have $1600 taken out, but you need to check on it and change it to single/0 or single/1.
OK, $40K a year isn't great wealth, but it's hardly poverty level either, you know.
2007-09-14 11:03:08 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
What I did was to change my number of dependents on my W-2 form (your employer will be happy to help you to do so), and that way when I actually file I always get a refund and I don't miss the little pit extra taken out each week. Boy ! Do I love those income tax refunds.
2007-09-14 10:37:27 · answer #4 · answered by Mezmarelda 6 · 0⤊ 0⤋
Check that you aren't declaring any dependants on your W4. If you are, set it to zero. You can also ask that your company take about $150 out extra per paycheck ($300 every month) as fed taxes. That'll cover the $3600 you're in the hole every year.
2007-09-14 10:36:14 · answer #5 · answered by Dave T 4 · 0⤊ 0⤋
Change your withholdings on your paycheck.
Here's the IRS website calculator.
You can enter different scenarios to see which works best for you.
http://www.irs.gov/individuals/article/0,,id=96196,00.html
Play around with it a bit and you should be able to determine what withholding you need so you don't end up paying so much at tax time.
2007-09-14 10:33:12 · answer #6 · answered by mister_galager 5 · 2⤊ 0⤋
buy a house..you do have the money, even if you dont know it. and change your tax form with your employer. dont claim anything...make it all say zero....they'll keep more taxes during the year, and you can get some back at the end.
2007-09-14 10:35:19 · answer #7 · answered by misspurrl 4 · 0⤊ 0⤋
If you earn $40,000 in 2007 your taxes are
Social security $2480
Medicare $580
Federal Income Tax $4330
Total taxes $7390 plus your state tax.
Your take home money $32,610 minus state tax(es).
Smile Please!!!
2007-09-14 10:57:45 · answer #8 · answered by MukatA 6 · 0⤊ 0⤋
Your doing your taxes wrong.
In any other country you would pay 20% which in your case is $8000.
2007-09-14 10:34:01 · answer #9 · answered by Man 6 · 0⤊ 2⤋
I think that you make $30,000 dollars more than me a year and should stop complaining.
2007-09-14 10:33:04 · answer #10 · answered by Anonymous · 1⤊ 2⤋