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Is it normal that I owe taxes if I got a raise in the middle of the year?

Posted on 1/23/13 at 7:40 pm
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26574 posts
Posted on 1/23/13 at 7:40 pm
In April, I got a 15% raise. I'm not sure if that has to do with me owing taxes rather than getting a refund. I am just wondering if in general, employers don't withhold enough for this sort of thing. I only owed $127, but last year I was refunded $1750.
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17251 posts
Posted on 1/23/13 at 8:01 pm to
quote:

I am just wondering if in general, employers don't withhold enough for this sort of thing


Your responsibility not there's, could be for a number of things, but actually looks like you did well, remember the goal is to neither owe anything or receive anything when you file your return. Owing $127 is pretty close
This post was edited on 1/23/13 at 8:06 pm
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/23/13 at 8:08 pm to
quote:

I only owed $127


That's a pretty good outcome, I'd be happy with it.

quote:

last year I was refunded $1750.


That is not a good outcome, you provided an interest-free loan to the IRS.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26574 posts
Posted on 1/23/13 at 8:09 pm to
I know that, but I didn't really do anything differently when I filed. I think it has to do with my company withholding too much last year, and too little this year, although that may be obvious.

Unless I managed to frick up TurboTax
Posted by LSUSUPERSTAR
TX
Member since Jan 2005
16303 posts
Posted on 1/23/13 at 9:27 pm to
quote:

company withholding too much last year


That has nothing to do with your company. That is between you and the tax man.
Posted by lynxcat
Member since Jan 2008
24121 posts
Posted on 1/23/13 at 9:32 pm to
I owe $500. I think my bonus is what threw it off.
Posted by TROLA
BATON ROUGE
Member since Apr 2004
12291 posts
Posted on 1/23/13 at 10:03 pm to
174 is pretty damn good..assuming witholdings didn't change and deductions were close, you probably fell right over the border of a new tax bracket. That will sometimes shift around how close the overall witholding table comes to actual.. This is assuming you didn't get hit with a small amount of AMT.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/23/13 at 10:31 pm to
quote:

That has nothing to do with your company. That is between you and the tax man.


This.

You tell the company how much to withhold, they don't make the decisions for you.
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