| |
| |
01-20-2011, 03:00 PM
| Junior Member | | Join Date: Jan 2011
Posts: 3
| | Two different incomes, get 3000 when seperately filled in, when filed together, only get $500? This past year I had a career change making more of an income. I know that I have the most taken out of my
paychecks every month in order to get a good size refund come tax time. When I enter in my W-2s separately, I get $3000
taxes. When I enter them both in, I only get $500, $400 which is a "Making work pay" credit.
My total wages for 2010 were: $24200
My total wages withheld for 2010 were: $5126
(From job 1 - wages - $10250 Withheld - $373)
(from job 2 - wages - $ 16000 withheld - $1886)
It just seems like I should have a larger tax return (technically I only get $100), especially since I had
the maximum taxes taken out each paycheck. Am I doing something wrong, or is this just the government screwing
more working people out of their money?
I am single, and have no dependents.
Thanks!!! |
01-21-2011, 05:28 AM
| Moderator | | Join Date: Oct 2010
Posts: 5,258
| | “It just seems like I should have a larger tax return (technically I only get $100), especially since I had the maximum taxes taken out each paycheck.”---->I guess so; so your gross income for 2010 is $24,200 and your tax liability ( if I assume that you do not itemize your deductions on Sch A; you do not claim any education expenses, student loan deduction, tuition and fees, or IRA deduction etc. ) is $1,813 and your total payment on 1040A line 44 is $2,659; taxes withheld from your paychecks $$2,959+$400( MWP cedit)=$2,659, then your tax refund should be $846; $2,659-$1,813=$846. Did you happen to owe IRS back taxes before?
Please visit the IRS website here; https://sa2.www4.irs.gov/irfof/lang/...fgetstatus.jsp |
01-21-2011, 10:58 AM
| Junior Member | | Join Date: Jan 2011
Posts: 3
| | Re: I have never owed taxes to the IRS... that is why I am so confused. However, when I claim myself as head of household, my refund amount does go up.
I was wondering if I would be able to claim HOH. My boyfriend and I have lived together for the past 5 years. In 2010, he was unemployed 3/4 of the year. Therefore, I was responsible for paying all rent and utilities - would this qualify me to be HOH? |
01-21-2011, 12:08 PM
| Moderator | | Join Date: Oct 2010
Posts: 5,258
| | “when I claim myself as head of household, my refund amount does go up.’---> Of course; for 2010, As a taxpayer claiming the Head of Household filing status, you can get benefit from a higher standard deduction and lower tax rates than single taxpayer.
“. In 2010, he was unemployed 3/4 of the year. Therefore, I was responsible for paying all rent and utilities - would this qualify me to be HOH?”----> Sorry. No you can’t; you can claim him as your dependent UNLESS he is a dependent of another person; however, to qualify as HOH, A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as school). Your boy friend is not your qualifying person. An unrelated dependent, your boyfriend, does NOT qualify you to file head of household. |
01-21-2011, 12:22 PM
| Junior Member | | Join Date: Jan 2011
Posts: 3
| | Thought it sounded too good to be true! However, a total of $846 refund is better than $500... However, I was going to make sure, I have to fill out (claim) BOTH of my W-2s (correct)... not just one of them? Since I get much more only filling out my W-2 from my current job. |
01-22-2011, 12:23 AM
| Moderator | | Join Date: Oct 2010
Posts: 5,258
| | "I have to fill out (claim) BOTH of my W-2s (correct)... not just one of them? "---> correct; as both of the employers withheld taxes from your paychecks, both of the withheld taxes are reported on Form 1040 line #61.So, I guess you need to contact your employer or HR dept. to adjust withholding9s) via your W-4 exemptions to reduce withholding taxes next return;if you usually receive a large refund, it would be wise to look at your deductions you have marked on your W-4 with your employer. If you change your deductions and have less deducted from each check you could either use that on other expenses throughout the year or save it and use it to buy something like you use your tax refund. As you know, your tax refund should not be considered “free money”. If you do receive a large tax refund, you are essentially giving the government a tax free loan
Continue reading on Examiner.com: Tax refund is not free money - Fargo Your Money | Examiner.com Tax refund is not free money - Fargo Your Money | Examiner.com
Last edited by Wnhough : 01-22-2011 at 12:58 AM.
| |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | |
| » Categories | | Individual Corporations Forum for CPAs Financial Planning | » Recent Tax Q&A |
No Threads to Display.
| |