Made $32000 this year then opened a ira with $2800 then cleaned it out. paid $8,400 in mortgage interests, filing married jointly and wife only made $5,000. Can anyone give me a clue.
2007-12-30 17:11:10 · 4 answers · asked by Daniel G 2 in Business & Finance ➔ Taxes ➔ United States
Since you didn't say how much was held out of your pay It is impossible to tell. Also since you Opened an IRA and then drew out the money there will be a 10% penalty on that. With the amount of mortgage interest you paid, property taxes and state taxes, you might be able to itemize instead of taking the standard deduction which could save you more. You need to see a tax professional to determine the best way to file.
2007-12-30 17:28:08 · answer #1 · answered by BigDog507 5 · 0⤊ 0⤋
On $37,000 income, a married couple taking a standard deduction would have a tax liability of $2146. You'll owe an additional $280 penalty for the early withdrawal from the IRA if you are under age 59-1/2. With the $8400 in mortgage interest you might be able to cut the tax down a little by itemizing, but it depends on what other deductions you have.
The IRA contribution deduction will balance out the withdrawal, so that won't change your taxes except for the penalty.
As to what your refund will be, there's no way to tell from the info you give. If you and your wife had more withheld for federal income tax than your tax liability, you'll get the extra back as a refund. If you had less withheld than that, you'll owe the difference - with the penalty on the IRA, you might end up owing this year.
2007-12-31 02:42:48 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Firstly, you dint tell the age i.e. date of birth for you as well as your spouse?
Secondly, you dint tell that you have any dependents or not?
Thirdly, yours $32000 and spouse's $5000 are from Business or its a Salary Income?
Fourthly, the previous year tax-return history like any losses/gains to be carry forward, any asset(s) which is/are continued to be exist in this year, if any then whats the cost of the asset(s) and their date of purchase?
These are few points on which your tax calculation are based. After receiving such information, a person can estimate your 2007 tax.
2007-12-30 19:31:50 · answer #3 · answered by nitin agarwal 1 · 0⤊ 1⤋
Punch your information info tax act.com and get a free quote you can even pay a small fee to submit your taxes online and get a refund sooner.
2007-12-30 17:15:03 · answer #4 · answered by Anonymous · 0⤊ 1⤋