I am married with no children, property or deductions. This next year we will go from making about $15,000 a year to $40,000 or a little more. I have been told that since we don't have children we will probably have to pay in taxes instead of getting income tax back. Is this true?
2007-11-23 16:41:49 · 7 answers · asked by Lil'MissThang 3 in Business & Finance ➔ Taxes ➔ United States
I don't know a whole lot about taxes but we both claim 0 exemptions on our w-4
2007-11-23 16:56:24 · update #1
I have children and I still pay taxes, and sometimes owe after I file I don't always get back anything.
2007-11-23 16:50:46 · answer #1 · answered by mysticalviking 5 · 1⤊ 0⤋
Probably so. A married couple can make $17,500 this year before they have to file a return and pay taxes. Over that, they have to file, and have to pay unless they have huge deductions or several kids. At $40K your federal income tax would probably total around $2624. Whether you pay when you file your return depends on how much was withheld for federal income tax. If your withholding was more than your total tax (the $2624) then you'd get the rest back as a refund. If you had less than that withheld, you'll have to pay it. If you both claimed zero, they most likely took out too much so you'd get a refund. Before you celebrate getting a refund, realize that the refund is just a return of your money, like getting change at a grocery store, but you let the government use it all year at no interest - very generous of you - when you could have had it earlier, in your paychecks.
If any of your income is from self-employment, there will also be a self-employment tax for social security and medicare.
2007-11-24 00:56:22 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Here is what it looks like for you if both of you are less than 65 years old.
Gross Wages: $40,000 - 2 Personal Exemptions at $3,400 each (6,800) - Standard Deduction (10,700) Married Filing Jointly = $22,500 your taxable income. Your federal taxes would be: $2,596. Then you may have state taxes as well.
2007-11-24 12:03:07 · answer #3 · answered by Gary 5 · 0⤊ 0⤋
It depends on how much taxes you withhold next year on the 40,000 dollars of income. If you withhold taxes as if you are only making $15,000 then you will owe addtional taxes to the government at the end of the year.
2007-11-24 00:49:41 · answer #4 · answered by Anonymous · 1⤊ 0⤋
the more you make the higher the tax bracket you go into.so if you have no deductions then yes you will have to pay in.how do you not have any deductions at all? you must have something that is able to be used as a taxdeduction. but the more you make the more you have to pay and the less you get back
2007-11-24 00:51:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋
even if you have a liability, are you a homeowner that can itemize deductions greater than your standard.deduction to reduce your liability? Try to get a hold of all the deductions you are entitled to. If you are not sure, request a tax preparation list at the website below.
2007-11-24 03:37:40 · answer #6 · answered by helpmebookkeep 1 · 0⤊ 0⤋
As long as you don't claim too many exemptions on your W-4s, you should come out close to even
2007-11-24 11:10:12 · answer #7 · answered by npk 7 · 0⤊ 0⤋