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)

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)

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.

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)

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)

"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

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)

"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.

"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.

"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