Claim 0 on W-4. Still owe taxes. WTF?

[Branhammer]

I don't know if this question has been asked on here or not, but how many of you are married with no kids and both employed? How do you keep from owing more once you do your taxes?

My wife and I both work and both claim zero exemptions on our W-4's. I just did our taxes over the weekend and we ended up owing $1500 to federal! WTF??? I understand why it happens. I'm sure it's because we are individually taxed throughout the year under one tax bracket but then our combined income puts us in a higher bracket come tax season, but how do we adjust things so that they just take out the correct amount throughout the year? I just want to break even.

Should we file separately? Is there something else we can do on our W-4's or are we just going to have to enter a dollar amount on them under "additional deduction amount?"

I don't intend to write the federal govt. another ****ing check next year, so any help is appreciated.

 

[venmos1]

My wife and i experience the same thing.. sucks. Have a our first baby due this July so should finally see something back next year. I assume its due to a higher tax bracket.

 

[13COBRA]

Same here. I owed almost $3k last year.

So this year I had an extra $100 taken out of each check on top of claiming 0. I get paid 3 times a month, so I paid in $3600 and and had a tax return of $487 this year.

 

[CO Mack]

Your combined income is putting you in a bracket higher than either of you would hit singly, it sounds like. I wouldn't do anything if it's only $1500 myself, but you can do quarterlies if you're worried about it.

If your combined income gets up into the $200's AMT and Obamacare taxes rear their ugly heads which are not captured in the IRS withholding tables, and those can get very nasty quick, so be careful if you are. That's also where you lose deductions for things like kids and childcare that you'd get otherwise.

You know, those rich people tax breaks. :dancenana:

 

[Machdup1]

Estimate the additional amount would be per check and have your employer remove it from your check. If you are self employed include the extra amount in your quarterly filings

 

[BrunotheBoxer]

Someone's gotta pay for all those Obama phones. Why not you?

 

[derklug]

File your W-4 as 0+$30, and they will take out an extra $30 per week. That should get you even. I'm in the same boat, I have an employer and a 1099 every year.

 

[rotor_powerd]

I don't know if this question has been asked on here or not, but how many of you are married with no kids and both employed? How do you keep from owing more once you do your taxes?

My wife and I both work and both claim zero exemptions on our W-4's. I just did our taxes over the weekend and we ended up owing $1500 to federal! WTF??? I understand why it happens. I'm sure it's because we are individually taxed throughout the year under one tax bracket but then our combined income puts us in a higher bracket come tax season, but how do we adjust things so that they just take out the correct amount throughout the year? I just want to break even.

Should we file separately? Is there something else we can do on our W-4's or are we just going to have to enter a dollar amount on them under "additional deduction amount?"

I don't intend to write the federal govt. another ****ing check next year, so any help is appreciated.

$1,500 isn't bad. I'd rather pay than than have the IRS holding my money all year.

My wife and i experience the same thing.. sucks. Have a our first baby due this July so should finally see something back next year. I assume its due to a higher tax bracket.

A kid is only a $1,000 tax credit. Sure it helps out but it's not life changing. Sure as hell doesn't even come close to covering the cost of a child.

Your combined income is putting you in a bracket higher than either of you would hit singly, it sounds like. I wouldn't do anything if it's only $1500 myself, but you can do quarterlies if you're worried about it.

If your combined income gets up into the $200's AMT and Obamacare taxes rear their ugly heads which are not captured in the IRS withholding tables, and those can get very nasty quick, so be careful if you are. That's also where you lose deductions for things like kids and childcare that you'd get otherwise.

You know, those rich people tax breaks. :dancenana:

I had the pleasure of finding out the other day that I don't qualify for the child tax credit, can't write off student loan interest, and whatever else you get penalized with for putting in a lot of long hours and hard work. Total crock of shit.

 

[HudsonFalcon]

You need to up your withholdings through your employer. I had an extra $150 taken out of each weekly check and my wife did the same with her bi-weekly check and we came out ahead with federal. We still owed the state though lousy bastards.

Keep working hard, millions on welfare depend on you.

 

[CO Mack]

I had the pleasure of finding out the other day that I don't qualify for the child tax credit, can't write off student loan interest, and whatever else you get penalized with for putting in a lot of long hours and hard work. Total crock of shit.

High taxes are in general not an efficient way to maximize the tax take, they're good at dis-incentivizing behavior. Our tax code is an abomination.

 

[P49Y-CY]

Should we file separately? Is there something else we can do on our W-4's or are we just going to have to enter a dollar amount on them under "additional deduction amount?"

there is an option in box 3 of the W-4 form that says, "Married, but withhold at higher Single rate".

 

[madscotsman]

Same boat here and it gets frustrating every year. My wife and I have my son, a home, and student loans, and we owe EVERY year. While my neighbors all buy new recreational vehicles or go on extravagant vacations every year with their tax returns. Last year we owed around 4K so I had my job take an additional $100 out of each of my checks in hopes to break even for 2015. We both claim 0 deductions on State and Federal. This year we still owe federal $1000. I usually go to good will a few times a year and drop off any clothes, toys or household item in good shape, that we either have replaced or no longer need, but itemizing those for taxes is a pain in the ass. I would love to break even once without having to enter 100's of separate donated items. When I enter all my income information I see a nice 4-5k fund coming my way, but then enter my wife's income and we end up owing. I make about 2x what she makes and we fall in the 25% tax bracket filling jointly.

 

[Branhammer]

there is an option in box 3 of the W-4 form that says, "Married, but withhold at higher Single rate".

There is, but I've been told not to claim that because they'll withhold too much.

 

[Torch10th]

Is there a large disparity in incomes between you and your spouse? This happens to my wife and I, but not nearly as bad. What happens is that our combined income pushes us into a higher tax bracket, by my wife's take of that is pretty modest as she's only a teacher.

As mentioned, there's a couple things you can do. You can pay quarterlies, add withholding to your paycheck through the w-f, or if you have that large disparity, have your wife withhold at the single instead of married rate.

Or you can of course pay in a lump sum at the end of the year as well. However depending on the amount owed and your AGI you may owe an underpayment penalty in that case.

 

[Grabber]

OP - Wife and I have the same issue. Owed $2,500 last year and $2,700 this year. Married, no kids, pay over $6,000 in property taxes, $5,000+ in interest payments, student loans, etc.

 

[BlueSnake01]

Married with 2 kids and “own” a house. Pretty much the only “break” im getting is from the kids. Had we had none, we would’ve been owing the state. We are barely breaking the 5 digit barrier together living in Comifornia, cant imagine how others are even able to make a living with less here.

 

[203Cree]

There is, but I've been told not to claim that because they'll withhold too much.

They will if both of you claim. I claim married/zero through the year, wife does the same at the higher rate, we come out just about even. Combined we're in the 25% bracket if that tells you anything. Better to get a refund than have to cut a check. We had it down a few years ago, before we got raises, where we got a whopping 90 dollars back. My goal is no refund, no payout, but if it has to be one or the other......

 

[motoman991]

You can't expect worthless liberals and over 50% of blacks to get a job and support their self. They require your hard work to live a life style they feel they're entitled to.

 

[EB85]

I owed $1100 last year and $250 this year. I work on commission and that portion of my pay gets taxed less by my employer for some reason. I handed in a revised form to have an additional amount taken out each check to cover myself and some more.

 

[MG0h3]

Pretty sure I saw the IRS had to reduce their workforce recently. Just saying, in case you find some other write offs if you haven't filed.