Every year no matter how we work it up my wife owes the Feds a ton of money at tax season. This year one came out to a big return and when we added hers it went seriously negative as usual. We added the MCC into it and it went back up. Before we where married hers always needed to pay the Feds a large sum while mine never did and I got a large return. What causes this? My question is more out of curiosity than anything.
I seem to remember that you can claim 0 or 1, some other numbers as well. If you claim zero, you get less back.
Your wife isn't paying enough taxes so she needs to increase her weekly taxes taken from her pay.. If you underpay too much you can pay tax penalties.. Ray
If you claim zero more gets withheld from your check! What you get back is what you have overpaid on the tax bill that you owe. Think of it as a layaway plan they are using your money interest free. Gary
I'd rather owe them than them owe me. Means I paid them to much, I feel better with my money in my hands. Some do use it as a savings, but at 0% interest. IMO , a good way to go Pete, owe them some . Though you can have your employers hold out more if you need to. Even holding out more than 0 dependents , there's an IRS form for it, try the web site.
I believe they are not dependents but rather allowances.. This is not the same.. The problem is sometimes you aren't prepared to pay them what you owe.. I try to get some back but not owe.. I would adjust my tax rate to avoid owing the government money and I like I said they can make you pay penalties if you owe them too much for underpaying your taxes.. I could ask my daughter she is a CPA with a master's degree and she will know the deal better than me..
I have the place I work for hold out extra for state because its been a pain to pay in at the end of the year with no was to send it electronically, no checkbook, and a post office that is rarely open. Last year they finally opened up a site to let us pay online.
You need to look at your W-4 form what are you claiming ? Last year was the 1st year I had no dependents and I always claimed the married rate 0 (line 3 on w-4 form) ended up having to write a check to the IRS for the tune of $1600.00 ouch . Changed my with holding to married ,but with hold at the single rate so this year I should be close to even possible we get back a few hundred. That's really where you want to be don't let Uncle Sam use your $$ interest free Hope this helps Pete
Yea. Not sure the amount of under paying, but they give you one warning I think. Not sure if it's a % or an amount ? You can stay on top of it, & get it to be near $0 dollars owe or get back, perfect ! Every so often it's good to go to an accountant & get their advice & have then help you balance for your situation. I don't make enough to ever owe them lots. If I owed them lots though, means I had a good $$$,$$$ year Pete must be rolling in the dough. ! ! ! ! I owe I owe I owe So off to work I go.
I am blonde I can't help it. Actually dark blonde so I am just on the cusp of understanding what I am talking about! What where we talking about I forgot?
