How can you figure out how much money you will be getting back for taxes?

Question

im trying to figure out how much money we will be getting back at tax season!
I really dont understand because I figured around 1000.
But, our friends figured out 8000 for themselves....my husband and my friends husband are military...same rank!
They have two kids though...so, i know they will get a little more money than us....but I dont understand how they can get 7000 more?

i dont make any income, and i am married.
my hubby makes about 40000. if this helps!

no kids yet!!!!

Answer 1

Fill out your tax forms. The end result will give you the answers. its a 1040 form and you can download it off the net. http://www.irs.gov/pub/irs-pdf/f1040.pdf

Answer 2

Getting some refund back or owing some money for taxes depends on each individual's own unique tax situation. Do you have a kid? Do you have any income? Are you dependent on someone's return? You need add these info, so then someone should be able to tell you something!

Added Later: Your Tentative Tax Payment (Please Note: this calculation is not included any estimated tax payments, withheld amounts, credits or other deductions that may reduce your tax liability)

$40000-$6800(2 exemptions)-$10700 (standard deduction, but if you itemized deduction is higher you can better use whichever is greater, that should reduce your taxable income). Tax you will owe is about $2624. Any tax payments, withheld amounts and/or tax free combat zone payments will reduce your taxable income and/or liability.

People with kids under 17 years old are eligible for the child tax credit of $1000 per child. So that makes difference between you & your friends. The Child Tax Credit only zeroes down the tax liability, but can't recieve the excess amount, becuase it is a nonrefundable credit. I hope this helps.

Answer 3

This depends on whether you own a house, donate to charity, ect...

Your friends get a higher deduction because they have 2 kids (there is $7000 in deductions right there)

Here is the 2007 tax table (to determine what your tax obligation is)...http://www.irs.gov/pub/irs-pdf/i1040tt.pdf

Here is the 2007 instructions (to figure out the standard deduction for you and your hubby)

You probably won't be required to pay the alternitive minimum tax but you will want to check...the laws have changed and it will suprise a great number of people when they file and have to pay a lot more in taxes because of the new ATM laws.

Answer 4

You calculate your total tax that you'll owe and subtract whatever is withheld.

If your friends make about the same amount, they aren't likely to get $8000 back, unless they had huge amounts withheld. With income of $40K they would not get the Earned Income Credit, but would only get back some of what they actually had withheld. The two kids would save them around $3000 in taxes though.

Answer 5

Go to www.taxact.com you can fill out a free tax return. they just wont offer you advice. dont submit anything,enter fictious info with respect anything they ask, but it allows u to play around and see what you can get back.

Your friends might be getting back more b/c with children, there is a 1000 credit per child. they might have had more taxes witheld from their check, which is bad. If they are getting back 8000, they are doing something wrong

Answer 6

On income of $40,000 the federal tax for Married Filing Jointly with no dependents is $2593.
Same income Married Filing Jointly with two kids, the federal tax is $1573. Then Child tax credits/additional child tax credit for 2 kids is $2,000.
So a saving of around $3,000 in the federal tax.

Answer 7

visit IRS website and download the forms you need and fill them out to know how much you will be getting back. Only you and your spouse know how much money you made through out the year and what deduction you may have.