This year I owe 1300 and I was wondering if someone could break the whole taxes owed thing down for me- why do I owe? Did I not pay enough in taxes throughout my work year?
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30. January 2010 at 10:59 pm
Yes, that’s exactly right. You didn’t have enough taken out of your paycheck. When you fill out a W-4 form, you select how much deduction there is to your paycheck. Usually, you select “0″ or “1″ to have enough taken out so that you don’t owe taxes at the end of the year.
30. January 2010 at 10:59 pm
A person makes X amount per year.
The Gov sets guidelines of what is a taxable income.
The Gov makes rules as to what can be subtracted from the X amount a person makes each year. Through deductions and credits.
that becomes the persons taxible income.
now there are scales set for this taxable income that determine your tax to be paid. the amount you owe.
now if your employer did not hold back enough you will have to pay over and above what the employer held back.
You need to decrease your deductions at your employer to get them to hold back more in order not to pay next year, or have more dependants or tax credits. if you are single that is hard to do. I believ it is a 1099 that you will change at your employer
30. January 2010 at 10:59 pm
It’s all based on how much you made and how much has already been taken out of your paycheck. What I do on my W2 form is just give myself either 0 or 1 exemption so that more gets taken out of my paycheck. I usually get a pretty nice refund doing this.
30. January 2010 at 10:59 pm
No, you didn’t pay enough taxes during the year.
The information on your W-4 at work must be accurate or the IRS will be taking out the wrong amount, so make sure that you check your W-4 at work for accuracy. Also, are your parents claiming you on their taxes? If so, you cannot claim yourself. The less people you can claim the more you will owe.
30. January 2010 at 10:59 pm
If you owe, you simply did not have enough tax withheld from your pay. You should file an updated W4 with your employer and reduce the number of exemptions that you are claiming for withholding purposes.