How much money will I get back from taxes next year?

Question

Hello there!

I make 50K a year. My withholdings are set to S02 (2 dependents, myself basically. I'm single as well. On my most recent paystub, it says they've already withheld around 11K for the entire year so far. That's ridiculous as far as I can see it. My question is, how much money do you think I'll get back in April 08? Will I owe anything? I don't have any 1099's to report or anything like that. Thanks a lot!

I am doing the standard deductions and I don't have any credits. I live in California also.

I thought for single people the max you can claim is 2. What is the addtional 3rd claim?

Answer 1

Still not enough information. The real answer lies in your deductions and credits. Will you itemize or take the standard deductions? Do you qualify for any credits?

Otherwise, there's no way to tell. If you think too much is being withheld and you will get a large refund, have your w-4 bumped up to read 3 dependents.

Answer 2

Since you claimed 2 withholding allowances you will be just about even up with the IRS at filing time. You may get a small refund or have a small balance to pay, typically less than $100 either way.

You're not clear on whether or not you have any dependents. From the tone of your question I'm assuming that you do not and have claimed 2 withholding allowances but don't have any actual dependent children. Claiming 2 allowances is OK if you are single and have only one job and just about zeros you out with the IRS at the end of the year. If you actually do have children or other dependents, please clarify and I'll adjust my answer appropriately.

This is actually the ideal situation as you are not giving the government a huge interest free loan like some fools do. Well done!

Answer 3

The $11K has to be the total of all taxes withheld, not the federal income tax. Your federal income tax is going to be about $6,700 with no dependents and taking the standard deduction.

Check your paystub again, and figure the total withholding for federal income tax for the year. If the total is more than $6,700 you will get a refund.

If you want to reduce your federal and state income taxes you can set up a traditional IRA and fund it by the due date of your return. You are in the 25% federal tax bracket so the deduction from an IRA may be worth it to you.

Answer 4

It depends on whether or not you itemize deductions or take the standard deduction. If you own a home, then the mortgage interest and property taxes will make it worthwhile to deduct. That will help to determine what your income tax bracket is.

In any case, chances are your income tax bracket is only about 15% - not counting your state tax, which depends on the state in which you live. Federally, you will owe approximately $1510 plus 15% of whatever you make over $15,100. So maybe you'll owe around $6000, and since you've paid $11000 already, well, there you go. Change your withholdings to a higher number. You can do this at any time.

Answer 5

Assuming filing as:
1) Head of household
2) Two dependents both qualifying for child credit
3) 50,000 salary is only income
4) Standard deduction
Then:
1.The federal income tax is $4,349.
2.Less $1,000 for each child tax credit...
3.Net tax $2,349
4.If Federal withholding is $6,736, Your refund is $4,387
5.CA income tax would be about $360, so the difference from that and the withholding would be refundable

All the social security and medicare are non-refundable.

You need to revise your W-4 withholding - the form is a little tricky.

Answer 6

Year 2007. Status Single. W2 pay 50K. Here are the taxes:

Social security and medicare taxes @7.65% $3,810
Federal income tax ........................................... $6736
CA disability @0.9% ....................................... $450
CA income tax .......................just a guess ...... $3600

You can get refund of federal income tax or state income tax only if the withholdings are more than the tax amount. If withholdings are less, then you must pay the balance amount.