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Old 01-30-2014, 10:37 PM
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I Need Help Understanding Why We Owe

Hello,
Any help would be greatly appreciated. Last year as well as this year my wife and I owe money. When we were both single we never had to pay and always received a refund. Just by estimating its looking like we are going to owe around $1000. Here is some info together we grossed $63,000. We both claim married and zero on our W4. If you need any more information please let me know. We are really just trying to get to the bottom of why we owe and are not getting a refund. Thanks.



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Old 01-31-2014, 12:26 PM
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Quote:
Originally Posted by corey87 View Post
Hello,
Any help would be greatly appreciated. Last year as well as this year my wife and I owe money. When we were both single we never had to pay and always received a refund. Just by estimating its looking like we are going to owe around $1000. Here is some info together we grossed $63,000. We both claim married and zero on our W4. If you need any more information please let me know. We are really just trying to get to the bottom of why we owe and are not getting a refund. Thanks.
I guess it depends on many situations. Nearly 75 percent of taxpayers get tax refunds each year. A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes, plus the refundable tax credits that they claim.A 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. 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. So, although it is nice to receive that extra money in April, take a look at how much you do get back and see if it would be wiser to change your deductions.If you reduce your W/A on W4 with your ER, then you can increase your refund.to Increase your Withholding. You can decrease the number of allowances you claim on Form W-4, line 5, orEnter an additional amount that you want withheld from each paycheck on Form W-4, line 6.


Note; another way to increase your refund; increasing your tax return requires planning, research and adequate recordkeeping. To increase your tax refund, you must adjust the amount of exemptions you claim throughout the yearon W4 as said, itemize your deductions on Sch A, claim additional credits, and take as many tax-preparation shortcuts as possible



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Old 01-31-2014, 05:49 PM
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Join Date: Jan 2014
Posts: 6
I think these posts are read and responded to by a computer. Seriously, the question asked was why does the OP owe so much two years in a row after both he and his wife got refunds when they were single. Pretty much the entire response talks about how getting a refund means that you are giving a free loan to the government, and how to decrease your withholding to avoid having a large refund. Hello! This is not the OP's problem!

I think that a computer read the OP's post, picked out some key words, and formulated a response, based on those words, from IRS instructions or some kind of tax advice database. Unfortunately, in this case the computer used the wrong key words.



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