OT taxes questions - any experts?

"Kathy " wrote in message
...
You may also consider (if you don't already have one) either a 401Kplan at
work, or a traditional IRA. Both are pre-tax deductions, which means you
pay
tax only on the income you have after either of these is deducted from
your
gross. You'll be sheltering this money from income tax, and setting aside
for
your retirement at the same time.

Kathy

If you haven't already filed your taxes this year you might be able to
reduce your taxable income by funding a traditional IRA to reduce your tax
liability. You have until April 15th to fund an IRA and get the credit.
Keep in mind there are some income limits for the credit.

Kathy in Kansas, an H&R Block person

"Dr. Quilter" wrote in message
...
Do you guys know if changing from
single - married implies less is taken every month?

Yup, if you claim married on your W-4, you have less deducted every month.
DH and I always do "married but withhold at higher single rate" because
otherwise not enough is taken out.


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!

I'll make an attempt to answer this without getting into any politics.
*grin* Yes, the withholding tables did change last year, so you started
getting a bit more in your check. But withholding tables don't always
correspond to the actual tax bill at the end of the year. So just because
the government decided to withhold less doesn't always mean you'll pay less
overall.

I've done my taxes, my FIL's taxes, my BIL's taxes, and a friend's taxes
this year. (Well, actually, for the last several years, too.) I noticed that
my friend, who has two kids, wound up just about right -- the change in
withholding matched the change in his total taxes pretty closely. FIL, who
is married with no minor kids (as are DH and I) wound up with a much larger
tax bill at the end of the year. BIL, who is single, wound up with a
moderately larger tax bill.

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!

If it would make you feel better, by all means go ahead. Just remember that
the large chain tax companies don't always have the best people / training.
The one in our shopping center did an 8 week course, two hours a week, to
train their people this year. One of my friends took the course and
passed -- I love her dearly, but with what she learned, there's no way I'd
let her touch my taxes.


--
Kathy A. (Woodland, CA)
longarm machine quilting, Queen of Fabric Tramps
http://www.kayneyquilting.com ,
remove the obvious to reply

"Dr. Quilter" wrote in message
...
I did, they tell me I should do what I want. I think maybe they are not
allowed to give tax advice?

Nope, they aren't allowed to advise you what to do. If they did, and you
followed their advice and didn't like it, you could sue them.

--
Kathy A. (Woodland, CA)
longarm machine quilting, Queen of Fabric Tramps
http://www.kayneyquilting.com ,
remove the obvious to reply

"Kathy " wrote in message
...

You may also consider (if you don't already have one) either a 401Kplan at
work, or a traditional IRA. Both are pre-tax deductions, which means you
pay
tax only on the income you have after either of these is deducted from
your
gross. You'll be sheltering this money from income tax, and setting aside
for
your retirement at the same time.

And this Kathy will heartily second that opinion. At this late date, a
traditional IRA is all you can do to help with 2003 taxes, but it's really
the best thing since sliced bread. (And if you have a 403(b) plan available
at the University, and you aren't in it, why not??? That's like throwing
away money!!!!)

--
Kathy A. (Woodland, CA)
longarm machine quilting, Queen of Fabric Tramps
http://www.kayneyquilting.com ,
remove the obvious to reply

Suzie,

You should have come to Iowa. Those breadsticks would have been only $1.05
(unless you went to a area within Iowa where they'd passed a special tax,
and then they would have cost $1.06!).

I never thought about how unusual our sales tax system would seem to someone
from outside the US. But I do remember that I was surprised when we visited
the UK that the price stated was the actual charge -- I was expecting the
17.5 percent VAT to be added to that price. Guess it's all what we get used
to!

--
Louise in Iowa
nieland4 at mchsi dot com
http://community.webshots.com/user/louiseiniowa

"Paul & Suzie Beckwith" wrote in message
...
Wish I could help, but working for the British Inland Revenue our tax
laws are completely different to the American ones - I'm starting to
think that America should be treated as 52 separate countries rather
than one country with 52 states, 'cos each state has its own laws on
what you can and can't do!!

OK, so that statement is rather tongue-in-cheek, and a sweeping
generalisation, but I still remember being in Seattle in 1999, whilst
we were staying with Donna (me Mam...) and visiting a fast food
outlet, asking "how much are those breadsticks?" and being told "2 for
a dollar", so we asked for two and got charged $1.08...

In the UK we have a law that states that the price on the shelf or on
the price ticket is the price you are charged at the till, with no
additions... its a national pastime to watch your purchases being rung
through the checkout like a hawk to ensure that you are not
overcharged - even by 3 pence!

FYI, the UK had Married Couples Allowance, worth approx £40 per month,
that you could claim but you had to be married, they also did away
with it in 2001 except if you were over 65...

Suzie B
--
"From the internet connection under the pier"
Southend, UK
--
Please remove NOSPAM when emailing me!
http://community.webshots.com/user/suziekga

but you don't pay less, when you compare this year the standard
deduction is twice what you pay as single or filing separately. right?
or did I missunderstand? obviously something was wrong in the way the
money was taken because they did not take enough... based on what you
say, must be that 1 deduction...

I was going to do efile but they screwed up my name: MARRISSA... I never
wrote that, so somebody struck that key twice!

Betty in Wi wrote:

Married people get a break tax wise. You pay less taxes than if you both
filed separately. That is why less taxes were taken out. My husband and I
have found that we need to claim 0 deductions each----we don't itemize
deductions either (no house interest to deduct). The payroll department
where you work should be able to help you calculate how many exemptions to
claim. If your tax situation is simple---do your taxes yourself. No need to
pay someone to do what you can do yourself. Did you know you can go to
Turbotax.com and file your taxes online. There are other providers as
well---H & R Block for instance. If you have internet, you don't have to go
out and purchase tax software---which changes each year. There is a nominal
fee for using internet tax software.


--
Dr. Quilter
Ambassador of Extraordinary Aliens
http://community.webshots.com/user/mvignali
(take the dog out before replying)

"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.

no child, Sofia was born feb 04. we just had married for the first time,
and 1 deduction (ourselves?)

Polly Esther wrote:

If you are having your paycheck (and DH's) being calculated as married
with one child, at the end of the year, you may get an awful amount of taxes
to pay.

--
Dr. Quilter
Ambassador of Extraordinary Aliens
http://community.webshots.com/user/mvignali
(take the dog out before replying)

back home the sales tax is 23% so the 8.8% here (WA state) does not
impress me! and yes, we have no local or state taxes, just have to deal
with Federal.. that was nice after PA that has them all!

Paul & Suzie Beckwith wrote:

OK, so that statement is rather tongue-in-cheek, and a sweeping
generalisation, but I still remember being in Seattle in 1999, whilst
we were staying with Donna (me Mam...) and visiting a fast food
outlet, asking "how much are those breadsticks?" and being told "2 for
a dollar", so we asked for two and got charged $1.08...

In the UK we have a law that states that the price on the shelf or on
the price ticket is the price you are charged at the till, with no
additions... its a national pastime to watch your purchases being rung
through the checkout like a hawk to ensure that you are not
overcharged - even by 3 pence!

--
Dr. Quilter
Ambassador of Extraordinary Aliens
http://community.webshots.com/user/mvignali
(take the dog out before replying)

we were doing married one. before we did single one and it worked, so I
just changed the status but not the exemptions. you guys were right.
instead of withholding at ~11% as in 2002, they did it at 8-9% for both
of us. that explains why we have to pay over 1000 instead of getting a
few hundred back (I read somewhere about penalty for underestimating if
it was more than 1000 but did not go into that aspect yet). still, it
means we got 150 bucks more per month combined which are now in my
savings account (excel is my friend now). I also did the estimate for
2004 to see if I should adjust but with Sofia and thus 3 standard
deductions (I did not include any child credit) I think we will be OK.
in any case, I had no idea they changed the amount they withheld when
you changed your filing status... so I still claim ignorance... )

Kathy wrote:


If you are both withholding at the "Married" rate, and have no deductions to
speak of, you will get taxed more heavily. I don't remember if you said you
were filing as "Married-One" or "Married-Zero'" which would also be
significant.
--
Dr. Quilter
Ambassador of Extraordinary Aliens
http://community.webshots.com/user/mvignali
(take the dog out before replying)