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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Can anyone help? Tax deduction question
Despite the fact that I have a child and now a house, we still owe because for some reason my job only takes out 10 - 11% for taxes (I work for Nassau County).
I was told last year that this is the payroll company's decision and short of changing my deductions to 0 (or a negative number) there is nothing I can do.
Does anyone know anything about this? I am BEYOND pizzed and upset right now.
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Posted 2/19/10 11:59 AM  |
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Long Island Weddings
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: Can anyone help? Tax deduction question
What are you withholding? When I got married and changed jobs I changed my withholdings to Married 0 and my accoutnant said it wouldn't make a difference. Well, that year we ended up owing. I was beyond angry. I immediately changed it to Single 0 and we got a refund this year. If you're not Single 0, you might be able to try that. Also, can you contribute more to your 401k? That could help some.
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| Posted 2/19/10 12:03 PM |
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telmah
LIF Infant
Member since 1/10 239 total posts
Name:
Prince
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Re: Can anyone help? Tax deduction question
Question, did you owe less this year compared to last year? Just b/c you now have an extra dependent and a house does not guarantee a refund. Did you buy the house early or late in '09?
The payroll co is supposed to base your withholdings on the info you provide on your W-4. They can't just invent any number.
Do both you and your DH have W-2 jobs?
ETA: Again I say, people think that taxes are simply a+b=c and it's not that simple. There's a+b+c+d+e+....=x
Message edited 2/19/2010 12:13:16 PM.
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| Posted 2/19/10 12:11 PM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: Can anyone help? Tax deduction question
Posted by telmah
The payroll co is supposed to base your withholdings on the info you provide on your W-4. They can't just invent any number.
That's my understanding too. It's all dependent on your W-4.
I file married 0 because I prefer the forced savings.
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| Posted 2/19/10 12:24 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Can anyone help? Tax deduction question
Posted by nrthshgrl
Posted by telmah
The payroll co is supposed to base your withholdings on the info you provide on your W-4. They can't just invent any number.
That's my understanding too. It's all dependent on your W-4.
I file married 0 because I prefer the forced savings.
I filed married 1, but I am changing it. I didn't realize you could still put down single. I would prefer not to owe.
Thanks for all the help (condescending or not  ) I have no idea how this stuff works and we use DH's accountant who is not at all helpful.
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| Posted 2/19/10 1:11 PM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: Can anyone help? Tax deduction question
If the payroll dept still doesn't withhold enough -- you can put on your W-4 an additional monetary amount that you would like withheld from your paychecks.
For some reason my sister's job never withholds enough state--so she had them take $10 more per paycheck on top of her withholding at the Single 0 rate.
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| Posted 2/19/10 1:15 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Can anyone help? Tax deduction question
Posted by MrsPJB2007
If the payroll dept still doesn't withhold enough -- you can put on your W-4 an additional monetary amount that you would like withheld from your paychecks.
For some reason my sister's job never withholds enough state--so she had them take $10 more per paycheck on top of her withholding at the Single 0 rate.
My parents take out additional money on top of having single 0
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| Posted 2/19/10 1:19 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Can anyone help? Tax deduction question
Posted by MrsPJB2007
If the payroll dept still doesn't withhold enough -- you can put on your W-4 an additional monetary amount that you would like withheld from your paychecks.
For some reason my sister's job never withholds enough state--so she had them take $10 more per paycheck on top of her withholding at the Single 0 rate.
I think this is the problem I am running into. From what I recall I went "down" to either Married 1 or 0 last year after we found out we were going to owe and it still didn't make a difference (I have to check with HR on Monday). I am still going to change to Single 0 but I will also look into taking out for state (which from what I understand is exactly where the problem lies).
I had a feeling I wasn't imagining things... thanks Melissa 
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| Posted 2/19/10 1:22 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Can anyone help? Tax deduction question
There can definitely be an issue of oweing with a married couple if one spouse makes significantly more than the other.
Here is a scenario. Husband makes 120k a year. Wife makes 30k.
The husband's job will probably taking out enough taxes since they know he makes 120k.
The problem comes up with the wife's job. The wife's employer is only taking out enough taxes for a 30k a year position. But in reality the wife's income is taxed at a WAY HIGHER tax rate and there is no way for the wife's job to know this.
When the couple does their taxes and files jointly, the wife's salary ends up being added on top of the husband's, so that portion of the income is taxed at the 120-150k rate. Yet the wife's company only withheld enough taxes for the 0-30k rate.
KWIM?
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| Posted 2/19/10 2:56 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Can anyone help? Tax deduction question
You can ask for a tax advisor to calculate based on your salary what need to be deducted for taxes at every paycheck.
For example, to not have to pay you might want to put "0" dependent (which both DH and I do). That will increase your tax contribution). Or with a calculation, you might find out that you must pay an extra $24 per paycheck (whatever number it is that is needed to deduct so you don't have to pay comes Tax time). You can do both on your W4
Message edited 2/19/2010 3:11:29 PM.
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| Posted 2/19/10 3:10 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: Can anyone help? Tax deduction question
Posted by ave1024
There can definitely be an issue of oweing with a married couple if one spouse makes significantly more than the other.
Here is a scenario. Husband makes 120k a year. Wife makes 30k.
The husband's job will probably taking out enough taxes since they know he makes 120k.
The problem comes up with the wife's job. The wife's employer is only taking out enough taxes for a 30k a year position. But in reality the wife's income is taxed at a WAY HIGHER tax rate and there is no way for the wife's job to know this.
When the couple does their taxes and files jointly, the wife's salary ends up being added on top of the husband's, so that portion of the income is taxed at the 120-150k rate. Yet the wife's company only withheld enough taxes for the 0-30k rate.
KWIM?
This is another possibility - DH makes more than I do, although the discrepancy is not as much as 30K/120K 
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| Posted 2/19/10 3:18 PM |
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