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Started By
Message
Logistical Tax Question
Posted on 3/16/17 at 1:10 pm
Posted on 3/16/17 at 1:10 pm
How is it possible for my wife and me to owe taxes when both of our are withholding status are Married and 0 deductions?
We owe a decent amount when I do the taxes Married filing Jointly with the standard deduction. How is this possible?
ETA: I just need to buy a house
We owe a decent amount when I do the taxes Married filing Jointly with the standard deduction. How is this possible?
ETA: I just need to buy a house
This post was edited on 3/16/17 at 1:11 pm
8
Posted on 3/16/17 at 1:12 pm to BACONisMEATcandy
Do you have significant non-W-2 income?
Posted on 3/16/17 at 1:14 pm to BACONisMEATcandy
Did you both fill out the dual earner worksheet?
Both of you are being taxed on your individual tax brackets but that doesn't account for the other persons earnings which will up your bracket
Both of you are being taxed on your individual tax brackets but that doesn't account for the other persons earnings which will up your bracket
Posted on 3/16/17 at 1:37 pm to BACONisMEATcandy
Do you have some passive income??? Did you get bonuses throughout the year that had low withholdings?
Did you make an early retirement withdrawl? gambling winnings?
Did you make an early retirement withdrawl? gambling winnings?
This post was edited on 3/16/17 at 1:38 pm
Posted on 3/16/17 at 1:37 pm to Croacka
quote:
Do you have significant non-W-2 income?
Zero
quote:
Did you both fill out the dual earner worksheet?
Neither of our places of employment has this
Posted on 3/16/17 at 1:40 pm to BACONisMEATcandy
Do you own a home? gross vs taxable?
Nevermind just saw the edit.
Nevermind just saw the edit.
This post was edited on 3/16/17 at 1:41 pm
Posted on 3/16/17 at 1:42 pm to BACONisMEATcandy
You make too much money, and don't withhold enough. Change both to Single.
Posted on 3/16/17 at 1:45 pm to BACONisMEATcandy
IRS website has a withholding calculator, or used to. If you don't want to owe, you can either switch your withholding to "single/0" as suggested, or you could have an additional $ amount withheld each pay period. Assuming nothing changes this year, just divide the amount you owe by the number of pay periods remaining and that will get you close to net $0.
Posted on 3/16/17 at 2:36 pm to seawolf06
quote:
Assuming nothing changes this year, just divide the amount you owe by the number of pay periods remaining and that will get you close to net $0.
I went and did this before I started this thread (and told the wife to do the same)
Thanks for your help
Posted on 3/16/17 at 2:59 pm to BACONisMEATcandy
quote:
Neither of our places of employment has this
Are you sure?
It's usually the 2nd page of your W4 with holdings worksheet.
You basically state your deductions and it tells you how much more you should be withholding.
Personally, I withhold an additional 100 per paycheck and it pretty much evens out my tax bill.
Posted on 3/16/17 at 3:19 pm to BACONisMEATcandy
quote:
How is it possible for my wife and me to owe taxes when both of our are withholding status are Married and 0 deductions?
Married is the problem. You need to select the married but withhold at the single rate box. Claiming married assumes you are the only income in the household. They really should change the boxes to say:
1 person single income household (Single)
2 person single income household (Married)
2 person dual income household (Married withhold at single rate)
Posted on 3/16/17 at 3:52 pm to BACONisMEATcandy
ProTip: If both of you work, withhold as single.
Married assumes only one of you is working. With marginal tax rates, that's a disaster.
Married assumes only one of you is working. With marginal tax rates, that's a disaster.
Posted on 3/16/17 at 4:09 pm to LSUFanHouston
I appreciate everyone's help. Rookie mistake on my 2nd year of being married
Posted on 3/16/17 at 5:08 pm to LSUFanHouston
Am I the only person who woul rather underpay slightly and have my money all year rather than give it to Uncle Sam in advance?
Posted on 3/16/17 at 5:26 pm to hungryone
quote:
Am I the only person who woul rather underpay slightly and have my money all year rather than give it to Uncle Sam in advance?
I try to do my taxes where I owe a few hundred dollars at the end of the year. If I get a refund, I just gave the government an interest free loan
Posted on 3/16/17 at 9:21 pm to BACONisMEATcandy
Happened to us the first year of marriage. Ended up owing like 3K in taxes
We changed both of ours to with holding at the single rate. It worked out this year. But we also had a mortgage in which we could deduct the interest. If we didn't have that, we'd still.owe money.
We changed both of ours to with holding at the single rate. It worked out this year. But we also had a mortgage in which we could deduct the interest. If we didn't have that, we'd still.owe money.
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