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So we all pay our taxes through a W2.. State and federal takes their part out of your check.. So why are we still having to pay more than what has been taken out the whole year? Double dipping?. What i been told is you always claim zero no matter what, then claim your dependents at the end of the year to get credit. So really your putting off money now for later? but getting no interest.
many of us have have other income and taxable sources of money coming in that is not taxed yet . so while work takes out what we tell them to it may not cover what is owed on the other stuff .
also , take 2 married couples with one in the 15% bracket and the other in the 25% bracket pay check wise .
when the two are added together the 15% is now 25% and owes more taxes than were likely taken out .
claiming zero can allow for some of that so you don't get blind sided at tax time .
Still seems like the government is double dipping. Say i am making 45k a year. so tax should be %15. fed. i live in texas so no state taxes.. but they take out 100+ a week in fed/medicare/ss.. ect.. so that is 5200 in taxes if it stays consistant a year.. So really, i am making 40k a year after taxes.. Shouldnt they adjust the w2 rate according to what i make to keep from getting a IOU from both parties? Isnt the goal is to break even, where nobody doesnt pay out. If my tax liability say is 6k a year. than take out 125 in taxes per check to break even..
These numbers are not even close but you get the idea..
no , you adjust your w2 rate and you tell them what you want them to hold . but if you under guess to far there is interest and penalties . there are tax programs that can help you guess pretty close .
i claim zero and have them withhold as much as i can since i owe tax on lots of other income sources that has no tax taken out .
you always fill out a form where you tell them what to hold back . it should reflect your total income picture not just your pay .
With it you can input your income, tax status, etc and it will tell you what to submit on a new W-4 to your employer to come close to a break-even.
You can do it now, and it will tell what changes to make for the rest of this year. Then in Dec, run it with your 2018 numbers, and re-adjust your payroll deductions for 2018.
It will also print out a new W-4 to give to your employer.
i understand the IRS site. but why are they depending on US to reflect on how much we want to take out vs just take out what is needed.. nothing more, nothing less.. Just tell them i have one child and wife doesnt work.. that should be enough info on what needs to be taken out correct? seems the tax system can be a lot more simpler if they really put some work in it.. Just seems they are really double dipping.. pay now and still pay more at the end, vs just take out in installments on your pay right the first time
i understand the IRS site. but why are they depending on US to reflect on how much we want to take out vs just take out what is needed.. nothing more, nothing less.. Just tell them i have one child and wife doesnt work.. that should be enough info on what needs to be taken out correct? seems the tax system can be a lot more simpler if they really put some work in it.. Just seems they are really double dipping.. pay now and still pay more at the end, vs just take out in installments on your pay right the first time
The IRS doesn't know what your taxable income is so they can't just take what's right out of your paycheck
They have no idea what other income or deductions you will end up having. Withholding is an estimate, and at tax filing time, you get either a refund or you owe more taxes, to make up for the wiggle room that is in an estimate. If your situation is pretty straightforward and you don't have any additional income and don't itemize on your taxes, you should be able to come up with a pretty close estimate. But any variable in your personal situation will increase the variability in the estimate.
You can pay additional money per paycheck beyond the married or single zero. Just adjust your w4.
You could also make estimated payments during the year if you wanted. They aren't double dipping. You simply didn't pay enough in.
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