Need Some Help On Taxes

Norski · 02-28-2004, 08:10 AM

I am not asking for the world here just some help,
I was told that if you clame ---O--- on your W-2 Form at work that they take out more taxes, in return when you file your taxes befor the 15 of April you would get a refund, So for the last 20 yars I have done this and I end up oweing more when we file.
Now this is getting old to say the lease, so my question to all in the know,
1. Should I clame 1, get more on payday??
2. Do thay take more taxes out if you do this??
3. I have the work place take out 15.00 extra.

What I have come up with is this.
Clame ---0--- get dinged.

Clame 1, IRS gets more ever payday.

Give more during the year 15.00 per mounth.

When we file I than clame 2 wife and I.

I am trying to beat this oweing more on tax day.

ANY HELP OUT THERE.

GETTING OLD RIVER-RAT.

Hogmaster · 02-28-2004, 08:45 AM

RR -

Well,

You kinda have your understanding backwards.

The more exemptions you claim on your W-4, the LESS the goverment holds out. Since you are already claiming 0 and yet still owing money, the answer is that you probably need to continue to claim 0, but ask your employer to withhold an extra $15 (or whatever you have been usually owing divided by the number of pay periods you have in a year).

That way when you get to tax time you should end up owing about nothing. Note that you can designate too. For example you can ask your employer to withold $10 to the feds and $5 to the state if you owe both. Or all to the feds. Or whatever...

If you are off by less than a couple hundred dollars, though, either way, you are doing pretty well. Tax law changes can effect things during the course of a year that much for many taxpayers anyway.

No, I am nothing even close to an accountant...

[ 02-28-2004, 09:49 AM: Message edited by: Hogmaster ]

SHLEPROCK · 02-28-2004, 02:12 PM

River-Rat
Setting up an IRA is a good way to not pay IRS
There are a couple of new tax laws that benefited me this year.
Do a search on [ form 8880 ] and look at the numbers.
If a person files a joint return and thier gross income is around $30,000 they could get back half of the first $2,000 contributed to an IRA as a credit plus the $2,000 would become tax sheltered.

[ 02-29-2004, 09:04 AM: Message edited by: SHLEPROCK ]

Cool Texan · 02-28-2004, 02:59 PM

Be aware of one thing..if you're married, there is a difference between claiming Married, Withold 0....and Married, Withold 0 at the Single rate.

Norski · 02-28-2004, 05:01 PM

Thanks Everone I sitting here trying to get this HEAD AKE done and no matter wich way I go I stell ___________O!!!!

but not much.

lost_sailor · 02-28-2004, 06:06 PM

There are too many variables, it's trial-and-error, I still don't have it figured out.

It's complicated by two household incomes, mortgage interest deductions, yadda yadda.

You'll get a refund this year, "W" cut your taxes!

Space · 02-28-2004, 08:08 PM

That would absoutely KILL me to have to pay. When you look at your pay stub(which I haven't had for a year now)and see how much you pay in taxes you might tend to feel it's too much. Then comes the end of the year and you find out you have to pay out of your own pocket after claiming zero. No way. That's just wrong. I have been lucky up till now. I have never had to pay out of my pocket. This year could be different though. I have been claiming Unemployment with out withholding any money. Will just have to wait and see if my write off's will cover it. I feel your pain.

SPACE

Rocky · 02-29-2004, 04:55 PM

We would rather owe come tax time than get a check back from uncle sam for the simple reason that money could have been used to make money but when the government uses your dough, they pay zero interest when they send your check back.

Mikeymoto · 02-29-2004, 06:32 PM

A little more info will help. You work full time? Only 1 job? Does your wife work? Full or part time? What exemption status does your wife claim?
I had ran into this problem a long time ago with my first wife. I was self employed and she worked a couple of part time jobs. The self employment was pretty easy to figure out, but when someone works 2 or more part time jobs you almost always get scr***d.
And I agree with Cool Texan, there is a big difference on what they withhold between married with 0 and single with 0.
MM

Jettin' Fool · 02-29-2004, 06:41 PM

You need a good Tax Accountant. A couple years ago I owed $1500 after my Tax appointment. I went to another guy who asked me all kinds of questions and told me about all sorts of write offs. I got $150 back that year! He worked for the IRS for 25 years and knows EVERY write off imaginable. If your accountant dont ask you many questions....get up and leave!

Good luck!

Jfool

[ 02-29-2004, 07:42 PM: Message edited by: Jett'in Fool ]

garyk · 03-01-2004, 09:51 AM

Sounds like a common problem - your combined incomes are bumping you into a higher tax bracket. You might try figuring your '04 tax liability right now, and then adjusting both of your withholdings so that it comes out right for 2004, with no tax-due surprise.

For '03 taxes, if you're eligible for for a regular income-deductible IRA, you have until tax day to make IRA contributions for 2003. If you can do this, you'll reduce your income and reduce your taxes due (you might even be able to reverse the situtation into a small refund).

PLUS you'll be putting money into a retirement account.

Norski · 03-02-2004, 02:54 PM

I can't belive they take so much out and than ask for more, So today I went and changed some of my with holdings.
Went with the big----O, and hade them take out another $25.00 per pay day and If I owe next year than we are going to have a fire side chat.

Just 1 jar of americans eggs short.

Silver Eagle · 03-02-2004, 05:36 PM

JUST BE SELF EMPLOYED, YOU DON'T MAKE ENOUGH TO BE TAXED................