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Lina
My angel is finally here
Member since 5/10 2559 total posts
Name:
Lindsay
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tax experts please help
I was recently figuring out our taxes and somehow we ended up owing a lot in taxes this year and I dont know why that happened since we got back last year and not much has changed. I checked with my employer and they said I am claiming 0 married. Is there a difference if I claim 0 single and can I even do that?
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Posted 2/14/12 9:12 AM  |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: tax experts please help
It's hard to answer this question without seeing your overall taxes and financial picture.
You didn't earn significantly more/less this year? Does box 2 on your W-2s show pretty much the same percentage withheld from last year? You didn't pull any money out of a 401K/IRA?
It could be you entered some numbers wrong in your tax program. Do you have a house? Did you include all interest and property taxes?
Like I said, there are so many ways the numbers can be affected and without seeing your papers, it's difficult to determine what's going on.
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| Posted 2/14/12 10:14 AM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: tax experts please help
It is hard to give a definitive answer without a full picture.
However, when you fill out your W-4, they calculate the taxes based on your salary alone, not your salary and DH's.
So, if you do married, they will withhold at a tax rate based on YOUR salary alone. So for arguments sake, let’s say that’s 15%. However, when it comes time to do your taxes and you file married joint, your tax rate is for your income AND your DH's income which would probably be 25%. Therefore, if you both withhold at the married rate, you are each short 10% at the end of the year.
Feel free to FM if you have any other questions.
You can always revise your W-4 to be married, but withhold at higher single rate.
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| Posted 2/14/12 6:28 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: tax experts please help
Posted by MrsC2009
It is hard to give a definitive answer without a full picture.
However, when you fill out your W-4, they calculate the taxes based on your salary alone, not your salary and DH's.
So, if you do married, they will withhold at a tax rate based on YOUR salary alone. So for arguments sake, let’s say that’s 15%. However, when it comes time to do your taxes and you file married joint, your tax rate is for your income AND your DH's income which would probably be 25%. Therefore, if you both withhold at the married rate, you are each short 10% at the end of the year.
Feel free to FM if you have any other questions.
You can always revise your W-4 to be married, but withhold at higher single rate.
You make a great point but if you do the math you are a little off I believe.
Remember your money is only taxed based on the money earned in each bracket.
So to use your example yes the first income would be taxed at 15% because the money earned will apply to the 15% bracket. If the husband's income pushes into the 25%, it will only be the husband's income that is taxed at 25%, and only the money that passes the 25%.
So in essence ONLY HE would be short the 10% (not both incomes), and it may not even be a full 10% because that's assuming his entire salary is in the 25% bracket which in all likelyhood only a percentage of that would be.
Message edited 3/29/2012 10:10:24 PM.
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| Posted 3/29/12 10:09 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: tax experts please help
And to answer the OP question, claiming single 0 vs. married 0 is a decent change. Almost a 10% difference i'd say in the tax you pay.
The difference between married 0 and married 1 is negligable.
I actually just ran these numbers today on my salary. My accountant is advising that I need more money taken out of my paycheck because I am anticipating some decent sole proprietorship profits for 2012. I don't want to have to owe to the point of paying penalties and pissing off the IRS.
You can go to any of the tax withholding calculators on the internet. I was clamining married 1. I tried married 0 and that wasn't enough. I didn't want to do single 0 because that was too much. So I went with married 0 and I had an additional $150 a month taxes taken out.
Message edited 3/29/2012 10:14:03 PM.
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| Posted 3/29/12 10:13 PM |
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