Last two paychecks, I noticed I was getting an extra $200. Today, I accounted for that $200 based on less taxes taken out for Federal and State. The reason? They changed my exemptions from 1 to 9! Obviously I want to change this back to 1 but as far as the extra money I received, do they take that back or do I account for it in taxes?
2007-12-17 10:02:33 · 9 answers · asked by djresourceonline 1 in Business & Finance ➔ Taxes ➔ United States
It will work out when you pay taxes for this year year. Probally not a problem, you just wont get as much back as you did the previous year
2007-12-17 10:06:23 · answer #1 · answered by Brett G 1 · 1⤊ 0⤋
They will not take it back.
When they take money for State and Federal taxes out of your paycheck, this is simply an estimate assuming you would make that amount of money for the whole year.
I repeat - just an estamate.
You will rectify this in your tax filing at the end of the year.
If money may be tight - you might want to put $400 away so that it is there when you need to pay it. You can also just send the $400 in now as an estimated payment.
Remember your employer is not the tax man, they are just collecting the taxes for the government free of charge. They don't want to do it especially for free, but if they don't - jail baby.
I actually employ less as a result of the burdens that the gov puts on you (as an empoyer) to do these kinds of things.
2007-12-17 10:10:50 · answer #2 · answered by yakrafter 2 · 0⤊ 0⤋
The W-4 change is forward only. The reconciling is done on your taxes, so if $200 less was withheld, then your refund(s) will be $200 less.
The burning question should be how did your W-4 change if you didn't submit a new one? If your exemptions changed from 1 to 9, that would have required a new W-4. If you didn't submit one, who did? Maybe they confused you with someone else. (If a new year rolls around and you don't submit a W-4, it defaults to single-0 which is pretty darn obvious since more money is withheld than expected.)
2007-12-17 10:10:23 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If you are accustomed to getting a refund and expected more than $400 when you file your 2007 return, just consider this part of it paid early and Merry Christmas. It will result in less withholding on your W-2 and a lower refund next year. If you anticipate owing more than $1,000 with your return, send the money to IRS with a request that it be applied as estimated tax for 2007.
2007-12-17 10:09:08 · answer #4 · answered by Anonymous · 1⤊ 0⤋
You're not being overpaid, you're just not paying your taxes.
You might be okay if you just send in another W-4 or ask them to correct it. For most people, there is no greater impact than that your tax refund will be smaller. If you're worried about owing taxes, all you have to do is ask them to take out an extra amount for the rest of the month to make up for it.
2007-12-17 10:19:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They won't take it back but you can pay it back on your next checks by filling out your W2 and giving a specific amount you want to pay to taxes until you pay back the $200. I don't think $200 is going to make a big difference in your taxes if you don't pay it back. I wouldn't try to pay it back.
2007-12-17 10:09:35 · answer #6 · answered by Mona 2 · 1⤊ 0⤋
Your taxes withheld was less for two weeks. It won't affect your tax bill at all; you owe what you owe. Your refund, if you have one coming, will be a bit less.
2007-12-17 10:08:35 · answer #7 · answered by curtisports2 7 · 0⤊ 0⤋
They don't take that back. You worry about that when you file your income tax return and unless you've made an outstanding amount of money, I wouldn't worry about it.
2007-12-17 10:28:43 · answer #8 · answered by wrjones559_1999 3 · 0⤊ 0⤋
They don't take it back, you will settle it when you file your return. If your withholding is not as you require, submit an updated W-4 to your employer.
2007-12-17 11:27:03 · answer #9 · answered by npk 7 · 1⤊ 0⤋