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#1
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OT taxes questions - any experts?
Obviously I know nothing about taxes. Just got a shock when I did the
calculations for 2003 and noticed for the first time we owe a big chunk (at least for us, since in the past we always got a couple hundred bucks back). Remember we rent, we don't get too much interest from savings accounts, and we have no other income besides 2 postdoc salaries. This is the second time we filed jointly. I noticed that a lot less was taken from our paychecks than in 2002, especially for DH. Any hint as to why? We both changed our status to married in Jan of 2003 (we couldn't claim married until we were 'residents for tax purposes' and able to use the regular 1040 instead of the 1040NR which has nothing to do with being legal residents but with being in the US longer than 5 years, it has been more than that, but we hadn't done it - I think I had, but it never crossed DH's mind he might change his status, he just does not think about those mundane facts), and we only have one allowance each. Do you guys know if changing from single - married implies less is taken every month? Or do you think it might be related to the new tax laws? I did notice the amount I took home went up at some point, while the total salary had not increased at that time.. I was happy since I was taking more home, and did not question why at the time (I guess in the long run it is better to owe since you've had the money all along, right? But getting a check back sure is nice!). Here I was, naively thinking that since taxes had gone down with Bush (or so the ads keep repeating, although I know most benefits are for the very rich) and there was no marriage penalty anymore we'd get a nice check back! Do you think I should see someone so they can take a look at my numbers? Like an HR Block person? They say the can definitely save you some money, right? The thing is, our taxes are so simple I am not sure they can help us so paying a fee might not be worth it.. unless there is something I am completely missing and it might make a huge difference - remember Sofia was born this year so I cannot claim her! -- Dr. Quilter Ambassador of Extraordinary Aliens http://community.webshots.com/user/mvignali (take the dog out before replying) |
#2
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I would go to the payroll dept and ask them to go over withholdings with
you. -- Mary http://community.webshots.com/user/mardor1948 "Dr. Quilter" wrote in message ... Obviously I know nothing about taxes. Just got a shock when I did the calculations for 2003 and noticed for the first time we owe a big chunk (at least for us, since in the past we always got a couple hundred bucks back). Remember we rent, we don't get too much interest from savings accounts, and we have no other income besides 2 postdoc salaries. This is the second time we filed jointly. I noticed that a lot less was taken from our paychecks than in 2002, especially for DH. Any hint as to why? We both changed our status to married in Jan of 2003 (we couldn't claim married until we were 'residents for tax purposes' and able to use the regular 1040 instead of the 1040NR which has nothing to do with being legal residents but with being in the US longer than 5 years, it has been more than that, but we hadn't done it - I think I had, but it never crossed DH's mind he might change his status, he just does not think about those mundane facts), and we only have one allowance each. Do you guys know if changing from single - married implies less is taken every month? Or do you think it might be related to the new tax laws? I did notice the amount I took home went up at some point, while the total salary had not increased at that time.. I was happy since I was taking more home, and did not question why at the time (I guess in the long run it is better to owe since you've had the money all along, right? But getting a check back sure is nice!). Here I was, naively thinking that since taxes had gone down with Bush (or so the ads keep repeating, although I know most benefits are for the very rich) and there was no marriage penalty anymore we'd get a nice check back! Do you think I should see someone so they can take a look at my numbers? Like an HR Block person? They say the can definitely save you some money, right? The thing is, our taxes are so simple I am not sure they can help us so paying a fee might not be worth it.. unless there is something I am completely missing and it might make a huge difference - remember Sofia was born this year so I cannot claim her! -- Dr. Quilter Ambassador of Extraordinary Aliens http://community.webshots.com/user/mvignali (take the dog out before replying) |
#3
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Even when I was married, I had the money taken out of my pay as though
I was single with no dependents. The withholding is different, and we never had to worry about that nasty little surprise --you owe-- I'd rather have a little coming back. A lot of people will tell you different, as "why let the government use your money and not pay any interest?" Personally it was worth it. On Sat, 13 Mar 2004 14:19:43 -0800, "Mary in Oregon" wrote: I would go to the payroll dept and ask them to go over withholdings with you. |
#4
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I know from experience that claiming "married" on your W2 does mean less
taxes taken out than claiming "single". I don't know why, but that's how it works. Does that make sense? As far as I know, you don't have to claim "married" even though you are. DH always claims single even though we're married & since we have 2 kids we tend to get a chunk back. I knew there was a good reason we had kids! hahaha It might not hurt to go to a tax preparer, but I would suggest shopping around first. Who knows, you might be able to find one who would look at it cheaper than HR Block? We've used Jackson Hewitt in the past few years, but after paying $200-something this year I've decided we're getting TurboTax next year at Wal Mart. HTH -- Deb in AR A desert-rat at heart! "Dr. Quilter" wrote in message ... Obviously I know nothing about taxes. Just got a shock when I did the calculations for 2003 and noticed for the first time we owe a big chunk (at least for us, since in the past we always got a couple hundred bucks back). Remember we rent, we don't get too much interest from savings accounts, and we have no other income besides 2 postdoc salaries. This is the second time we filed jointly. I noticed that a lot less was taken from our paychecks than in 2002, especially for DH. Any hint as to why? We both changed our status to married in Jan of 2003 (we couldn't claim married until we were 'residents for tax purposes' and able to use the regular 1040 instead of the 1040NR which has nothing to do with being legal residents but with being in the US longer than 5 years, it has been more than that, but we hadn't done it - I think I had, but it never crossed DH's mind he might change his status, he just does not think about those mundane facts), and we only have one allowance each. Do you guys know if changing from single - married implies less is taken every month? Or do you think it might be related to the new tax laws? I did notice the amount I took home went up at some point, while the total salary had not increased at that time.. I was happy since I was taking more home, and did not question why at the time (I guess in the long run it is better to owe since you've had the money all along, right? But getting a check back sure is nice!). Here I was, naively thinking that since taxes had gone down with Bush (or so the ads keep repeating, although I know most benefits are for the very rich) and there was no marriage penalty anymore we'd get a nice check back! Do you think I should see someone so they can take a look at my numbers? Like an HR Block person? They say the can definitely save you some money, right? The thing is, our taxes are so simple I am not sure they can help us so paying a fee might not be worth it.. unless there is something I am completely missing and it might make a huge difference - remember Sofia was born this year so I cannot claim her! -- Dr. Quilter Ambassador of Extraordinary Aliens http://community.webshots.com/user/mvignali (take the dog out before replying) |
#5
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200 bucks, really??? I thought you had to claim married if you were and
the only reason we weren't was the non resident issue... Deb in AR wrote: I know from experience that claiming "married" on your W2 does mean less taxes taken out than claiming "single". I don't know why, but that's how it works. Does that make sense? As far as I know, you don't have to claim "married" even though you are. DH always claims single even though we're married & since we have 2 kids we tend to get a chunk back. I knew there was a good reason we had kids! hahaha It might not hurt to go to a tax preparer, but I would suggest shopping around first. Who knows, you might be able to find one who would look at it cheaper than HR Block? We've used Jackson Hewitt in the past few years, but after paying $200-something this year I've decided we're getting TurboTax next year at Wal Mart. HTH -- Dr. Quilter Ambassador of Extraordinary Aliens http://community.webshots.com/user/mvignali (take the dog out before replying) |
#6
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"Dr. Quilter" wrote in message ... 200 bucks, really??? I thought you had to claim married if you were and the only reason we weren't was the non resident issue... I would say undoubtedly your payroll deductions went down because of the change to "married" as well as the tax reduction. Both DH and I claim "single" and we also have extra money taken out. Still, this is the first year we got a refund in a long time. Iris |
#7
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I think she means that on the W-4 withholding form you can claim single, but
on your actual taxes at the end of the year you have to claim married if you are. "Dr. Quilter" wrote in message ... 200 bucks, really??? I thought you had to claim married if you were and the only reason we weren't was the non resident issue... Deb in AR wrote: I know from experience that claiming "married" on your W2 does mean less taxes taken out than claiming "single". I don't know why, but that's how it works. Does that make sense? As far as I know, you don't have to claim "married" even though you are. DH always claims single even though we're married & since we have 2 kids we tend to get a chunk back. I knew there was a good reason we had kids! hahaha It might not hurt to go to a tax preparer, but I would suggest shopping around first. Who knows, you might be able to find one who would look at it cheaper than HR Block? We've used Jackson Hewitt in the past few years, but after paying $200-something this year I've decided we're getting TurboTax next year at Wal Mart. HTH -- Dr. Quilter Ambassador of Extraordinary Aliens http://community.webshots.com/user/mvignali (take the dog out before replying) |
#8
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"Heather" wrote in message ... I think she means that on the W-4 withholding form you can claim single, but on your actual taxes at the end of the year you have to claim married if you are. You don't have to file as Married if you don't want to. YOu can file together as 'married', or you can file as Married filing separately, but usually you are better off (Pay less in taxes) if you file together. To be sure, run the numbers each way and file however it comes cheaper for you. |
#9
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"Tracey" wrote in message . com... "Heather" wrote in message ... I think she means that on the W-4 withholding form you can claim single, but on your actual taxes at the end of the year you have to claim married if you are. You don't have to file as Married if you don't want to. YOu can file together as 'married', or you can file as Married filing separately, but usually you are better off (Pay less in taxes) if you file together. To be sure, run the numbers each way and file however it comes cheaper for you. Actually, the tax law says that if you are married you *must* file as married. whether it be Married Filing Joint Return or married filing separate return...you must still file as married. And it really only matters what your status is on the last day of the year. If you were married all year and your divorce was final on the last day, then youa re considered unmarried for the entire year. And if you got married on New Year's Eve, then you are considered married for the entire year. My point I was making before is that you are legally allowed to have taxes withheld at whatever rate you want..whether it be married , single, whatever...you can go up to Married and 9 dependants before the IRS questions you. But at the end of the year, you must *file* as what you legally are..either married, single, or head of household. |
#10
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"Tracey" wrote in message .com...
"Heather" wrote in message ... I think she means that on the W-4 withholding form you can claim single, but on your actual taxes at the end of the year you have to claim married if you are. You don't have to file as Married if you don't want to. YOu can file together as 'married', or you can file as Married filing separately, but usually you are better off (Pay less in taxes) if you file together. To be sure, run the numbers each way and file however it comes cheaper for you. You also have to run the numbers for your state taxes as you have to file the same status with both fed and state. Sometimes you can save a little on the feds by filing "married, filing single" and end up with big tax bill from state. Also there are some credits and limits that are different. It is very rare for MFS to save money. Usually it is only used when there is a nasty divorce in the works. Midge |
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