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Old 04-12-2010, 06:53 PM
 
Location: Blankity-blank!
11,449 posts, read 14,308,172 times
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Every year I do my own taxes using the 1040EZ. I have no house, no investments, no property, no combat pay, no education benefits, no unemployment pay, nothing out of the ordinary. I file married - joint return. Wife works also.
Every year we get a refund, nothing to jump with joy about, but a refund, maybe $150 to $200.
For 2009 our combined earnings are $36,000. Hardly anything to brag about and certainly well under the national average.
Here's the shock. For 2009 we have to pay $1,567! What happened? Am I now a high wage earner? Considering my wages for 2009 were $20,555!
For 2008 our combined earnings were $29,000. We received a $162 refund.
Does going from $29,000 to $36,000 put us way up in the tax bracket?
So I wonder, where is the steepest spike in the tax tables?
I'm pi$$ed. For $1,567 I could make a one week vacation to Paris or London, or buy a big screen TV, buy an engine for my car, or many other things.
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Old 04-12-2010, 09:14 PM
 
11,924 posts, read 21,508,334 times
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Maybe refigure it. Did you include the making work pay credit? That is $800 right there.

I owe this year too, something is up. I've never owed in my life and I started off owing $4,000. Last year I got $3k back and earned the exact same amount of money (within a few hundred bucks).
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Old 04-13-2010, 06:37 AM
 
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Visvaldis, I think you may have figured something wrong, or your employer put something wrong on your W-2, Amount Withheld column.

If your gross was $36,000, and you are married filing jointly, you said "we". Then your exemptions are $9350 EACH or $18,700 total.

That leaves you a taxable income of $17,300. As wheelsup posted, check out the credits for "making work pay" etc.

But at $17,300, the tax is only $1764. The only way you would owe $1567 is if NEITHER OF YOUR EMPLOYERS WITHHELD INCOME TAX.

Is it possible that your withholding changed?

A mistake somewhere, but not a "spike" in tax rate.
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Old 04-14-2010, 12:28 PM
 
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Basically its just the changes made by Obama administrtion to withholding likely. They lowered the withholding for each claim on W4. The idea was to put more money into your pocket hoping you would spend it and stimulate the economy. But it at the end of year just meant that you either got less back or had to pay;it did not change the taxes owed.I actually changed my withholding by filing a new w4 when I heard it was going into effect so as not to owe too much at end of year.
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Old 04-14-2010, 01:18 PM
 
Location: Boise, ID
8,043 posts, read 23,705,086 times
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Quote:
Originally Posted by Visvaldis View Post
Wife works also.
Quote:
Originally Posted by wheelsup View Post
Maybe refigure it. Did you include the making work pay credit? That is $800 right there.
This is almost certainly your problem. I would bet that both your work and your wife's work held less out because of the Making Work Pay program. If you didn't instruct them to do otherwise, both companies would have held less than usual out for taxes. Since you can only pick up $800 total for the two of you, you probably owe more than usual. The fact that you owe so much more than usual makes me suspect that wheelsup is right and you didn't pick up the credit at all.

How much do your W-2s say was held out for federal and state tax (if you have state tax)
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Old 04-14-2010, 04:01 PM
 
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Lacerta wrote;
Quote:
If you didn't instruct them to do otherwise, both companies would have held less than usual out for taxes. Since you can only pick up $800 total for the two of you, you probably owe more than usual.
Re, my earlier post I didn't realize what the "making work pay" was. If it's an $800 credit for a couple filing jointly there is NO WAY they could owe another $1564 in taxes. NO WAY!

Based on his numbers his total taxes, before the credit, are $1764, if he they get an $800 tax credit after that then their TOTAL TAXES are $964. With total taxes of $964 it is impossible to owe another $1500!

BTW, he also posted something about this in another thread, maybe Politics. And it was posted after I had given him my first answer. I'm beginning to think it's just another "anti-Obama" troll.
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Old 04-14-2010, 04:25 PM
 
Location: Boise, ID
8,043 posts, read 23,705,086 times
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Quote:
Originally Posted by golfgod View Post
Lacerta wrote;

Re, my earlier post I didn't realize what the "making work pay" was. If it's an $800 credit for a couple filing jointly there is NO WAY they could owe another $1564 in taxes. NO WAY!

Based on his numbers his total taxes, before the credit, are $1764, if he they get an $800 tax credit after that then their TOTAL TAXES are $964. With total taxes of $964 it is impossible to owe another $1500!

BTW, he also posted something about this in another thread, maybe Politics. And it was posted after I had given him my first answer. I'm beginning to think it's just another "anti-Obama" troll.
The credit doesn't affect how much you owe total, just when you are paying it. It is intended to get more of your tax money into your hands throughout the year instead of at tax time. So it is an $800 credit, but $800 LESS taxes should have been held out throughout the year. Unfortunately, in 2 income households, sometimes more was held out, meaning more is now due back. But I agree, the math doesn't add up.

Maybe the OP is talking state, federal (and local ?) taxes all combined. Then it might be possible.
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Old 04-14-2010, 05:46 PM
 
Location: Two Rivers, Wisconsin
11,722 posts, read 11,541,988 times
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Sounds very strange to me and on a re-read almost like bait to start something to see what responses they would get, especially this close to tax day.
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Old 04-14-2010, 07:28 PM
 
Location: Baltimore
1,802 posts, read 7,292,962 times
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If you compare the tax tables for 2008 and 2009 you will see that taxes for low to middle income earners have gone down. For example, in 2008 the federal tax due for a taxpayer who files married filing jointly with $17,300 taxable income was $1,796, and for 2009 it is $1,764.

And this is prior to allowing for the $800 tax credit, which would then reduce the 2009 tax to $964.

I agree - either a troll or someone who just doesn't have a clue.
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Old 04-15-2010, 07:22 AM
 
3,553 posts, read 6,938,484 times
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OK, thanks Lacerta. I only took a quick look at the EZ form and from what others had posted I thought it was a credit at tax time. I thought it might have been a troll as well, but I got a PM from the OP and he gave me his numbers, apparently the withholding change is what got them.

That's why I sit down and guesstimate a few times during the year where my income is and how much my withholding has been and adjust the witholding up or down. Actually in my case I have no witholding, no "salary" income so I adjust my quarterly payments but you get the idea.

I screwed mine up this year and ended up overpaying.
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