I claim 5 on my W-4 form and I always get a big refund at the end of the year. According to my income level and filing status, I should be taxed at 25%, but I am taxed at 40%. Can I fix this? I would rather get my money each month rather than give it the IRS to use!
2007-11-01 06:39:39 · 6 answers · asked by Eline K 2 in Business & Finance ➔ Taxes ➔ United States
Are you referring to Fed tax? Depending on your state, you may be paying higher than you should. Calculate the deduction % for fed & state to see which is too high & then adjust accordingly.
2007-11-01 06:57:58 · answer #1 · answered by Deb S 6 · 0⤊ 0⤋
Are your federal taxes at 40%?! Because then someone in accounting is doing it wrong.
Are you combining the state and local taxes to get the 40%?
2007-11-01 13:43:33 · answer #2 · answered by sahel578 5 · 0⤊ 0⤋
Where you live, and how much you make has alot to do with taxes. If you have someone living with you that is not paying rent, here, you can claim them. Rules are different in differnt states. Contact a C.P.A. and see what he has to tell you.
2007-11-01 13:44:41 · answer #3 · answered by cprucka 4 · 0⤊ 0⤋
Claim more --
Also get a dependant
or
Sign up retirement account (put $ to better use - tax free
2007-11-01 17:22:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If they are withholding 40% for federal income taxes, talk to your payroll department or if you don't have one, to your emploiyer - they are taking out too much.
2007-11-01 14:53:52 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Contact a CPA and talk to them about it. They should be able to help you out better than anyone on Y!A
2007-11-01 13:41:57 · answer #6 · answered by thai 5 · 1⤊ 0⤋