Owing Taxes AGAIN...how to avoid?

We owe AGAIN. We have owed every year for like 5 years now. I occasionally get a small refund but only if I have a large education credit. Even with going to school, I end up owing.
This year is not bad...We got my school money ( about $400) back on Federal...BUT we owe $450 on State taxes.

Both of us claim 0 on our w2's.

I dont get how we can avoid this, except by taking an addtional amount out during the year.

This stinks

Re: Owing Taxes AGAIN...how to avoid?

Who does your taxes? You should ask them, or see an accountant. What a pain!

Re: Owing Taxes AGAIN...how to avoid?

take out add'l money through out the year ... make it a small amount like $10 per paycheck.

Re: Owing Taxes AGAIN...how to avoid?

Ugh- I feel your pain. I owed the state every year, for YEARS. I don't remember exactly why- I think there was something about my pension that messed it up?

I got to the point where I didn't care because I went back to school and started getting big enough Federal refunds that it didn't matter so much to owe the state. But it hurt for a couple years!

Re: Owing Taxes AGAIN...how to avoid?

I do my own, we have no real deductions ..no house , and cannot itemize....So I see where we have no credits but why dont they just take more out then? We cant claimless then 0 for goodness sakes!

Re: Owing Taxes AGAIN...how to avoid?

You can pay quarterly estimated taxes - you still end up paying, but in smaller amounts 4x a year instead of in one big chunk at the end.

Re: Owing Taxes AGAIN...how to avoid?

For some reason, NYS withholding charts do not always w/h enough for people with no deductions (the same thing happens with us). You can ask your employer to withhold an additional amount of NYS tax from your check - you guys are real close an extra $5 a week each will give you a small refund next year (with all things being equal).

Re: Owing Taxes AGAIN...how to avoid?

We used to have to pay and I had my boss withhold an extra $5 from federal and $10 from state. You don't notice it in your paycheck and you get a refund at the end of the year.

Re: Owing Taxes AGAIN...how to avoid?

Just take out an extra 10-20 for the state every paycheck.

Re: Owing Taxes AGAIN...how to avoid?

This happens to me too. Except I owe much, much more! Even last year when I had $15k + in medical bills, I still owed.

Hopefully this year with the house and 30k + in med bills we'll break even!

Re: Owing Taxes AGAIN...how to avoid?

I have extra money taken out of my paycheck and that helps get us a refund.

Re: Owing Taxes AGAIN...how to avoid?

are you claiming Single Zero? If so, I do not understand how you can not be getting a refund. I always have claimed single zero and always got a refund from Federal, and still owed on state so now I have an extra $10 a paycheck taken out for state and it evens out at the end of the year.

Re: Owing Taxes AGAIN...how to avoid?

We pay ever year pretty much since we got married due to our combined income. We both are single 0 as well. Even with a house and baby we will pay.

DH does take a chunk of extra money out of his pay check each pay period to lessen the blow at the end of the year.

Re: Owing Taxes AGAIN...how to avoid?

How does the education credit work? Do you deduct from your salary? This is the first year I have spent a lot on tuition.

We paid in last year, so DH had more taken out of his paycheck each period. He gets untaxed bonuses, so last year we had to pay in A LOT to make up for it being untaxed.

Re: Owing Taxes AGAIN...how to avoid?

It's actually not a bad thing to owe the IRS money when you file...it's basically a interest free loan from the government. The only way to not owe money when you file is to pay more taxes through the year.

Re: Owing Taxes AGAIN...how to avoid?

We have never gotten anything back until we had our 2nd child. We even owed the state last year but this year we are getting money back for both.
The woman told us we are doing everything right. I claim 0 married and my dh claimes 1 married. We get more money in our checks each week than 1 time a year like some people who rave that they get so much back.

Re: Owing Taxes AGAIN...how to avoid?

We both claim 1 and get a lilttle $ back each year.
When you claim 0 they take out less taxes and you end up owing.

Re: Owing Taxes AGAIN...how to avoid?