Last year I got approximately $200 back from both state and federal taxes. I was claiming 3 dependents. This year I am claiming only myself, so am bringing home less each month, even though my annual salary is higher. Will my tax return inrease this year?
2007-10-21 13:48:59 · 6 answers · asked by buffy2vt 1 in Business & Finance ➔ Taxes ➔ United States
Last year I made about $37900 and claimed 3. This year I make 38900 and claim 1. Last year my pay checks were $3200 a month, now they are $3000. So, did this change because I am claiming only 1 and how will that affect my tax return?
2007-10-23 11:50:27 · update #1
OK, You're claiming fewer EXEMPTIONS on your W4, hence the smaller paychecks. I'm going to assume you can still claim 3 dependency exemptions on your actual tax return (1040, 1040A or 1040EZ). In your income level, you should be looking at a nice refund, assuming you have 3+ dependents listed on your return.
Remember, at your income level, you're looking at an additional $1000 per child under 17 as a credit (not refundable, but lowers your tax). And don't forget to consider the Child Care Credit if you have to pay for day care.
I give you all this information, but I have to say that there are other factors that could affect all of this. If you took money out of retirement, if you have interest, dividend, or stock income. If you have slef-employment income, or gambling, or non-taxable combat pay. I know it might seem kind of crazy, but we're talking about a tax code instituted by Congress and carried out by the IRS - it doesn't have to make sense :)
Hope that helps! Have a Blessed Day!
2007-10-27 13:18:17 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
Can't say - not anywhere near enough info. You could end up owing this year instead of getting a refund unless you changed your W-4 to properly reflect your new circumstances, and had the additional amounts withheld ALL year.
If you mean that last year you claimed 3 allowances on your W-4 and are now claiming only one, but nothing about your personal circumstances has changed, then you'd probably be OK.
2007-10-21 21:04:17 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
How much did you salary increase by? Did the increase put you in another tax bracket? If your increase was more than $7k or so, and you are in another tax bracket, you may get less of a refund, or owe taxes. A smaller increase, and no change in tax bracket, may get you a bigger refund than last year.
It would be a good idea to do a mock tax return now rather than wait and be surprised.
2007-10-21 21:03:32 · answer #3 · answered by ninasgramma 7 · 0⤊ 1⤋
My best guess is that your refund will be higher if you are claiming 1 on your W-4 instead of 3.
However, there is not enough information to give an accurate answer.
2007-10-21 21:52:35 · answer #4 · answered by Steve 6 · 0⤊ 1⤋
Your tax refund depends on your income, how much tax was withheld and the tax credits you are entitled to. It has nothing to do with what you got back last year.
2007-10-21 22:08:29 · answer #5 · answered by Gypsy Girl 7 · 0⤊ 1⤋
Its very hard to say. Obviously, the formula is:
Taxes paid - Taxes due = Refund.
You say taxes paid went up. But taxes due may also be up. I don't have enough info to answer.
2007-10-21 20:57:40 · answer #6 · answered by hottotrot1_usa 7 · 0⤊ 1⤋