Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-26-2017, 07:01 PM
Junior Member
 
Join Date: Jan 2017
Posts: 1
From Tax Refund to Tax owed

My husband is a 71 year old retired Airforce + disabled veteran.
He is the breadwinner. His income = our income.

Up until last year we got a tax refund every year.
Last year's refund was only $250.
This year it looks like we would owe $3,750.

Our income has not really changed except for small government issued increases.

What has changed (in tax regulations) to make our taxes go up $4,000 ?????



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-26-2017, 09:53 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
In general, in common sense,If you finish your tax return and are confused as to why you need to send the IRS a check, there is only one possible explanation for this: you paid less tax during the year than you owed for your income level. The reasons for this situation, however, can vary or your state may fully taxes pensions if you have pension fund income Without seeing both returns for both years it's not possible to say with any certainty.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-27-2017, 12:17 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
NOTE: If your only source of retirement income is Social Security, then most likely you will pay no taxes in retirement. If you have other sources of income, a portion of your Social Security income is likely to be taxed. The amount of tax is determined by a formula. The result of the formula is that you may have to include up to 85% of the Social Security benefits as taxable income on your tax return. The amount that is taxable (anywhere from zero to eighty-five percent) depends on how much other income you have in addition to Social Security. Retirees with almost no income other than Social Security will likely receive their benefits tax-free and pay no income taxes in retirement. Most withdrawals from retirement accounts are taxed in retirement. This means IRA withdrawals as well as withdrawals from 401(k) plans, 403(b) plans, 457 plans, etc., are reported on your tax return as taxable incomeMost people will pay some tax when they withdraw money from their IRA or other retirement plans.
The amount of tax you pay depends on the total amount of income and deductions you have and what tax bracket you are in for that year



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Divorce and tax bill owed. Emma_D Miscellaneous 1 07-23-2015 03:11 AM
More than 10k owed in IRS rooki3 For 2014 1 02-08-2015 04:31 PM
Tax owed under $1 deltacharlie Trusts and Gift Tax Returns 6 01-30-2014 07:04 PM
Can IRS offset my tax refund to collect income tax debts owed to California State? Pearl California 1 10-04-2008 09:29 PM
Money owed glifetime Estimated Taxes 1 08-19-2008 10:17 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.