Tax people... I have a question

I just spoke to my accountant who says that we are going to owe state about $1300 dollars!!!!

Does that seem right to you? We have a coop as a write off, take the maximum amount out for taxes including city tax (claim single 0) even though we are married.

She said we will get back from federal, but have to pay state because we have no dependents and aren't over a certain age to not pay school tax. (We live in Queens).


Is that correct? What can we do (besides having children!) to lower our state tax? I'm so upset, I thought for sure with the coop this year, we would do great, but now it seems like we will just break even.

Do I need a new accountant???

Re: Tax people... I have a question

Unfortunately, owing NYS tax is common even with deductions and credits. It's because our state tax, and with you, city tax is so high that not enough is withheld to cover your liability. You can double check the figures yourself to see if you come up with a different figure but you will probably still owe.

Re: Tax people... I have a question

Is there any way to have more state tax taken out of each check?

I do that with federal... have them take out an extra $25 a paycheck on top of what they already take out.

Thanks for the info!

Re: Tax people... I have a question

I have a friend who had the same problem and she went and had her taxes redone by someone else...and she ended up getting $$$$ back...

Re: Tax people... I have a question

From a financial stand point, it's better to owe taxes then to get a refund. However, I know most people like a big check in April. Ask to have more withheld... it's dependent on your HR/Payroll department.

Re: Tax people... I have a question

Fill out the state form to have more money per paycheck taken out for State.

Re: Tax people... I have a question

New York State is a weird state. Even if you itemize on your federal return, 9 times out of 10 it doesn't work out that way on the state. NY does not allow you to deduct the withholding taxes you paid to them - so most people end up taking the standard deduction for the state - which is why they generally owe $$.

Re: Tax people... I have a question

We just got our tax return and we owe on State, again this year. We get such a nice federal return, but always end up paying the state!

xxxxxxx

Message edited 2/11/2007 8:07:57 PM.

Re: Tax people... I have a question

Posted by dandj

I just spoke to my accountant who says that we are going to owe state about $1300 dollars!!!!

Does that seem right to you? We have a coop as a write off, take the maximum amount out for taxes including city tax (claim single 0) even though we are married.

She said we will get back from federal, but have to pay state because we have no dependents and aren't over a certain age to not pay school tax. (We live in Queens).


Is that correct? What can we do (besides having children!) to lower our state tax? I'm so upset, I thought for sure with the coop this year, we would do great, but now it seems like we will just break even.

Do I need a new accountant???