Does anybody else owe taxes every year?

[CarbonBraddock]

Link?

just google 'irs withholding calculator.' it will ask you info about your paychecks and will show you how much to withhold which you then tell to your hr department or whoever you got to tell it to.

 

[666 ReVeNGe 666]

wtf man, what am I doin wrong? I gone to an accountant, used turbo tax, got my taxes done free at the local library and every year I owe. I even have write-offs and nothin matters. I stay owing. And it gets bigger every year.


Everybody in my circle and around me get some thing back. I'm the only one that seems to owe every year.

claim one allowance

claiming two is a lot for a single person

 

[Antiquity]

You're claiming two allowances? If you are single with no children then that's too much. You're going to end paying anytime that you claim two. Knock it down to zero if you want a refund. You'll have more taxes taken out of your paycheck, but you'll receive a refund at the end of the year rather than owing. Also, add deductions to your tax return, such as donating to charities (be sure to keep all of your receipts).

 

[winb83]

Not every year but I paid $13K in federal taxes last year and $4K in state income taxes. I got no tax refund for either and was $750 short after my payroll deductions.

 

[Uachet]

I do, because it is better to pay than to give them the money and have them return it to you. The time the money was in the hands of the government, could have been used for something that gave a better return. Simply put, a dollar today is worth more than a dollar tomorrow.

 

[Seoul Gleou]

Not every year but I paid $13K in federal taxes last year and $4K in state income taxes. I got no tax refund for either and was $750 short after my payroll deductions.

Are you filing joint or single?

 

[Strapped]

If you owe then you're doing it right

 

[winb83]

Are you filing joint or single?

Single

 

[Seoul Gleou]

Single

Have you ever used the withholding tax calculator

Tax Withholding Estimator | Internal Revenue Service

Check your W-4 tax withholding with the IRS Tax Withholding Estimator. See how your withholding affects your refund, paycheck or tax due.

www.irs.gov

 

[Ciggavelli]

Man, only if it's capital gains. I normally pay more than what I owe. It just depends on the capital gains.

 

[winb83]

Man, only if it's capital gains. I normally pay more than what I owe. It just depends on the capital gains.

That's what got me. I also have an inefficient tax strategy where I get some dividends in a taxable account so I can tap into it without penalty before my late 50s. I end up paying those from my normal income as I reinvest all dividends.

Have you ever used the withholding tax calculator

Tax Withholding Estimator | Internal Revenue Service

Check your W-4 tax withholding with the IRS Tax Withholding Estimator. See how your withholding affects your refund, paycheck or tax due.

www.irs.gov

I've never looked at that just let my job handle it. Due to bank interest and dividend payments my taxable income is typically $3.5K if not more higher than what my job accounts for. If I sell any stocks for profit I usually owe federal. I always owe state taxes every year.