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Old 02-04-2009, 08:33 AM
 
1,643 posts, read 3,831,190 times
Reputation: 765

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I have a question to someone who knows about taxes.

We are in the highest tax bracket. We recently sold our upside down house(due to depreciation) and managed to limp out of the state. We are renting now.

My question is, now that we will not have any mortgage interest to write off and we have no kids, what should we be claiming at work to make sure we don't owe taxes next year?

In the past we have gotten killed on our taxes with what we owe and being we are not Senators, we did have to pay the taxes.

Your advice is appreciated.
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Old 02-04-2009, 09:21 AM
 
Location: Sverige och USA
702 posts, read 2,824,943 times
Reputation: 418
You should have 0 allowances on your W-4 and elect to have additional money deducted from your paycheck. You can select the amount to be deducted from each paycheck.
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Old 02-04-2009, 09:32 AM
 
1,643 posts, read 3,831,190 times
Reputation: 765
Are you serious? My God, how much money are we going to have to pay? Isn't the 38% or what ever it is enough? It will be more? UGH So even if we claim single and zero, we will still have to have extra taken out????

What a great benefit for higher education! Geez
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Old 02-04-2009, 09:39 AM
 
3,627 posts, read 13,059,425 times
Reputation: 2716
Oh good grief, if you are in the highest tax bracket and you are taking the maximum allowable pre tax deductions what have you got to complain about? You should be able to afford to talk with a CPA to figure out your best tax strategy.
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Old 02-04-2009, 10:05 AM
 
Location: Somewhere in northern Alabama
18,760 posts, read 55,979,166 times
Reputation: 33069
JennySquirrel, stop and think for a minute. There are millions out of a job, you've shed a disaster, and you are whinging about taxes??? Please. There are lots of folks here that would love to trade positions with you. Like grannynancy says, get a CPA.
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Old 02-04-2009, 10:08 AM
 
4,182 posts, read 5,879,257 times
Reputation: 1726
Post your tax returns here so people can make an intelligent suggestion.
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Old 02-04-2009, 10:54 AM
 
Location: southwestern PA
20,419 posts, read 38,751,621 times
Reputation: 39120
Quote:
Originally Posted by JennySquirrel View Post
Are you serious? My God, how much money are we going to have to pay? Isn't the 38% or what ever it is enough? It will be more? UGH So even if we claim single and zero, we will still have to have extra taken out????

What a great benefit for higher education! Geez
Would you like a little cheese with that 'whine'?

Be grateful you are employed and have so much when others have so little....
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Old 02-04-2009, 11:14 AM
 
Location: Wilmington, NC
412 posts, read 1,122,572 times
Reputation: 297
If you are filing "married filing jointly", your standard deduction is $10,900. You can itemize instead, but your itemized deductions would have to add up to more than $10,900. Usually it's not worth the hassle to even attempt to itemize if you don't own a house, unless you had an unusual situation such as extremely high medical costs.

Here is a link with information on itemized deductions:
[url=http://www.irs.gov/taxtopics/tc500.html]Tax Topics - Topic 500 Itemized Deductions[/url]
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Old 02-04-2009, 12:03 PM
 
150 posts, read 885,746 times
Reputation: 123
Quote:
Originally Posted by JennySquirrel View Post
I have a question to someone who knows about taxes.

We are in the highest tax bracket. We recently sold our upside down house(due to depreciation) and managed to limp out of the state. We are renting now.

My question is, now that we will not have any mortgage interest to write off and we have no kids, what should we be claiming at work to make sure we don't owe taxes next year?

In the past we have gotten killed on our taxes with what we owe and being we are not Senators, we did have to pay the taxes.

Your advice is appreciated.

If you are a W-2 employee, you probably want to have tax withheld as the higher single rate, 0 allowances. You may need to have an additional amount withheld, but it will depend on what you make/what you expect to owe. There is a W-4 worksheet you can use, or you can go to the withholding calculator at IRS.gov if you don't want to hire a CPA. Do you make or need to make estimated payments?

I am surprised by some of the responses. The OP didn't write she is not grateful. Sometimes it's ok to vent, and I liked the senator humor.

How dare someone not be elated to be in the highest tax bracket? Most people in the highest tax bracket (who actually pay their taxes) worked very hard to get to that point, deferring gratification and making sacrifices along the way. It doesn't feel good to pay a lot in taxes for doing the right thing, especially when half of Obama's cabinet can't seem to pay their taxes. We don't have the privilege of "household help" but our public servants do? Please. But don't get outraged about the inequity of public figures getting away with cheating. Instead, spend your time criticizing the OP, who is taking PROACTIVE measures to ensure correct payment of taxes!
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Old 02-04-2009, 12:21 PM
 
Location: southwestern PA
20,419 posts, read 38,751,621 times
Reputation: 39120
Quote:
Originally Posted by JennySquirrel View Post
Are you serious? My God, how much money are we going to have to pay? Isn't the 38% or what ever it is enough? It will be more? UGH

Truly, that does NOT sound like someone "who is taking PROACTIVE measures to ensure correct payment of taxes! "

Hence my comment....
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