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Started By
Message
Confused as hell on exemptions/witholding on taxes. Please help.
Posted on 7/4/13 at 1:42 am
Posted on 7/4/13 at 1:42 am
I've held several jobs this year and my wife has switched. Total of like 6 w2's will come in.
Fwiw, it's me, my wife, and 1 kid come tax time.
I put "2" on one job that made 11k. Only $725 came out for that whole time I had that job for the fed.
Other jobs I put "1" that made 2k, and 20k.
Put 0 for guard stuff was 6k.
Wife put 0 for a job that made $9,500
Switched job- put down "1" for 18k
Also, got around $2200 in credit card income I'll have to report as income without any tax taken.
I was reading into the safe harbor thing. Last year agi was 60k. Didn't have the kid last year and I got a bunch of school money that wasn't taxed when received. We'll gross about 70 if I included everything.
So, one job with 2 on the witholding, three jobs with 1, and two jobs with 0.
Next year will be nice with only 2 jobs.
I know this is confusing.
Deductions will be around $2400
(I don't think interest on will will be enough to list- around $4500, bought in march. Payment is 870 with taxes and insurance)
tl:dr- Wife and I will combine for 70k on 6 different w2's. Various witholding/exemptions listed. Don't know what the hell to do to make sure I don't pay a penalty.
Fwiw, it's me, my wife, and 1 kid come tax time.
I put "2" on one job that made 11k. Only $725 came out for that whole time I had that job for the fed.
Other jobs I put "1" that made 2k, and 20k.
Put 0 for guard stuff was 6k.
Wife put 0 for a job that made $9,500
Switched job- put down "1" for 18k
Also, got around $2200 in credit card income I'll have to report as income without any tax taken.
I was reading into the safe harbor thing. Last year agi was 60k. Didn't have the kid last year and I got a bunch of school money that wasn't taxed when received. We'll gross about 70 if I included everything.
So, one job with 2 on the witholding, three jobs with 1, and two jobs with 0.
Next year will be nice with only 2 jobs.
I know this is confusing.
Deductions will be around $2400
(I don't think interest on will will be enough to list- around $4500, bought in march. Payment is 870 with taxes and insurance)
tl:dr- Wife and I will combine for 70k on 6 different w2's. Various witholding/exemptions listed. Don't know what the hell to do to make sure I don't pay a penalty.
This post was edited on 7/4/13 at 1:50 am
4
Posted on 7/4/13 at 7:30 am to wegotdatwood
Stop worrying about exemptions and dollar amounts attached to it you are way over complicating it and I don't understand why.
Sum up all of your withholding, and see what that dollar value is. Again, ignore excemptions just get the total amount withheld.
Estimate your tax liability for this year with an online calculator.
Compare the two numbers to see where you stand as of now.
To avoid a penalty, you need to have prepaid 90% of the current tax year's liability or prepay 100% of last year's tax liability.
Sum up all of your withholding, and see what that dollar value is. Again, ignore excemptions just get the total amount withheld.
Estimate your tax liability for this year with an online calculator.
Compare the two numbers to see where you stand as of now.
To avoid a penalty, you need to have prepaid 90% of the current tax year's liability or prepay 100% of last year's tax liability.
Posted on 7/4/13 at 7:33 am to wegotdatwood
Just looking at your numbers though, common sense would tell you that you don't have to worry about a penalty.
Posted on 7/4/13 at 7:48 am to Volvagia
Why is that? Also, the child credit is 1k. That means if I owed 8k in taxes then I would only owe 7?
Posted on 7/4/13 at 8:04 am to wegotdatwood
Changing jobs multiple times during the year can result in severe under-withholding. Each employer is likely to withhold as if you had zero income when they started paying you. Thus, some of the withholding from the later employers will be based on the 10% tax bracket even though you may have exceeded the income from prior employment. And the last dollar you earn may not be subjected to withholding at your actual marginal tax rate.
You need to sit down and fill out a W-4 using the worksheets on page 2. You may have to submit W-4's with zero withholding allowances and additional amounts withheld in order to avoid a large balance due on April 15, 2014 and possible penalties for insufficient withholding.
You need to sit down and fill out a W-4 using the worksheets on page 2. You may have to submit W-4's with zero withholding allowances and additional amounts withheld in order to avoid a large balance due on April 15, 2014 and possible penalties for insufficient withholding.
Posted on 7/4/13 at 8:10 am to Poodlebrain
quote:
You need to sit down and fill out a W-4 using the worksheets on page 2. You may have to submit W-4's with zero withholding allowances and additional amounts withheld in order to avoid a large balance due on April 15, 2014 and possible penalties for insufficient withholding.
My full-time job next month is where I'll make the most money (the 20k). Plan is to claim zero instead of one and maybe have a little extra come out?
Also, just looked, last year agi was 49k. So, I'll owe more in taxes than last year (says taxable was/is 29k)
That will cover on the safe harbor thing right?
This post was edited on 7/4/13 at 8:27 am
Posted on 7/4/13 at 9:43 am to wegotdatwood
quote:
Why is that? Also, the child credit is 1k. That means if I owed 8k in taxes then I would only owe 7?
It's a credit. That doesn't mean that it's a dollar for dollar write off on your total tax bill.
Posted on 7/4/13 at 10:37 am to VABuckeye
quote:
It's a credit. That doesn't mean that it's a dollar for dollar write off on your total tax bill.
I thought that's what a credit is.
A deduction just lowers taxable income. I thought a credit lowers the actually amount you have to pay???
Sorry, I'm confused.
Posted on 7/4/13 at 11:33 am to wegotdatwood
a deduction is pretax. credit is aftertax.
Posted on 7/4/13 at 11:37 am to fishbig
Oh, okay. I'm seeing a few different things. I'm seeing for each dependent is $3,800 and I'm seeing a child tax credit for 1k.
To all: Is this correct? Would that be added on top of a standard deduction?
To all: Is this correct? Would that be added on top of a standard deduction?
Posted on 7/4/13 at 12:46 pm to wegotdatwood
The dependent exemption leads to a deduction in addition to your standard deduction or itemized deductions in calculating taxable income. The child tax credit of $1,000 reduces the tax owed dollar for dollar.
Posted on 7/4/13 at 1:49 pm to LSUTiger13
I should get to find out my wifes pay stub to figure some things out.
Cool on the credit thing. Also had the homestead $350 thing. Will I get to use that if I don't itemize?
Cool on the credit thing. Also had the homestead $350 thing. Will I get to use that if I don't itemize?
Posted on 7/4/13 at 2:15 pm to wegotdatwood
quote:Isn't that a state tax and not a federal tax issue?
Also had the homestead $350 thing. Will I get to use that if I don't itemize?
Posted on 7/5/13 at 10:05 am to wegotdatwood
This will get you in the ball park:
LINK
Poodle is right when he says every new employer is withholding @ 0-10% but but with deductions it is doubtful you go above the 15% marginal rate + state tax which is going to be the same scenario on too low beginning withholdings.
LINK
Poodle is right when he says every new employer is withholding @ 0-10% but but with deductions it is doubtful you go above the 15% marginal rate + state tax which is going to be the same scenario on too low beginning withholdings.
Posted on 7/5/13 at 10:42 am to tirebiter
Thanks, I'll take a look. The good thing is the biggest source of income has yet to take place.
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