Quick Tax Filing Question
Thread Starter
Instructor
Joined: Oct 2000
Posts: 163
Likes: 0
Quick Tax Filing Question
Hey guys,
I am using turbotax to file my taxes this year and it says that I will owe the IRS money. During 2008, I changed jobs so I received (2) W-2s. Now here is where I am confused. When I enter in both W-2s on Turbotax it says I will owe the IRS about $100 or so. But when I enter in the two W-2s separately it says I will get a refund of about $1400 and $1200. The only problem is when I have both entered it says I have owe money. I am just confused and am a newbie it terms of filing taxes. If someone could explain I would appreciate it. Thanks
I am using turbotax to file my taxes this year and it says that I will owe the IRS money. During 2008, I changed jobs so I received (2) W-2s. Now here is where I am confused. When I enter in both W-2s on Turbotax it says I will owe the IRS about $100 or so. But when I enter in the two W-2s separately it says I will get a refund of about $1400 and $1200. The only problem is when I have both entered it says I have owe money. I am just confused and am a newbie it terms of filing taxes. If someone could explain I would appreciate it. Thanks
Safety Car
Joined: Jul 2007
Posts: 4,845
Likes: 145
I assume your second job pays higher? You got the mid-year screwing. Your old job was withholding tax at a specific rate assuming you'd work all year at the lower wage. Your second job withheld taxes thinking you'd only have 6 (or whatever balance) months of wages.
The first job didn't withhold enough to compensate for your future higher wage putting you in a higher tax bracket. The second job didn't withhold enough to compensate for your previous income pushing you into a higher tax bracket.
It will work out better next year, assuming you stay with the same job all year or make a lateral move respective to pay.
The first job didn't withhold enough to compensate for your future higher wage putting you in a higher tax bracket. The second job didn't withhold enough to compensate for your previous income pushing you into a higher tax bracket.
It will work out better next year, assuming you stay with the same job all year or make a lateral move respective to pay.
AZ Community Team
Joined: May 2007
Posts: 32,488
Likes: 7,771
From: N35°03'16.75", W 080°51'0.9"
You need to enter them both on separate lines in TuboTax. Don't add them up and enter them once.
Also were the W-4's at both places the same? If not, one might have over or under paid taxes while you worked there. Check that your current W-4 is has the dependents set the way you want them.
Also were the W-4's at both places the same? If not, one might have over or under paid taxes while you worked there. Check that your current W-4 is has the dependents set the way you want them.
Thread Starter
Instructor
Joined: Oct 2000
Posts: 163
Likes: 0
Thanks guys for the info. Yeah my new job pays more. I did enter the W-2s as separate items. I did not combine the numbers to put them into turbotax. Actually, it might not be better next year. I am actually changing jobs again in September or October but getting married in October. So are you saying if I switch jobs again and get paid more at my new job, I will have the same problem again? What if my new job pays me less? Now I know why I didn't become an accountant. This stuff sucks
Safety Car
Joined: Jul 2007
Posts: 4,845
Likes: 145
Now you're on to round two. I made a quick bitch about this in D&R. When you get married, do some calculations to see if your combined wages will put you in a different tax bracket than what you're currently in. For example:
You: 28%
Her: 28%
You+Her: 33%
This is just one more thing your job isn't going to know about; they're going to withhold as if you have no other income. And if you change your filing status to Married, they'll withhold even less.
I've been getting smacked by this bullshit for the past three years. Not only do I not see a penny of tax refund, I also have to deal with the wife's complaints that "her" refund is less than it used to be. Sorry. Taxes and marriage are just sore spots for me.
You: 28%
Her: 28%
You+Her: 33%
This is just one more thing your job isn't going to know about; they're going to withhold as if you have no other income. And if you change your filing status to Married, they'll withhold even less.
I've been getting smacked by this bullshit for the past three years. Not only do I not see a penny of tax refund, I also have to deal with the wife's complaints that "her" refund is less than it used to be. Sorry. Taxes and marriage are just sore spots for me.
Racer
Joined: Sep 2008
Posts: 304
Likes: 4
From: San Francisco, CA
^I just used turbo tax. Have been for the past 3 years. And this year I got less of a return than I did last year. I only made like 5k more this year and got 100 less back on my refund. My co-worker made about the same as me and he got like 1-1.5K more back in returns. WTF?!?
He DOES have someone to help him file his taxes though whereas I'm doing this myself....
He DOES have someone to help him file his taxes though whereas I'm doing this myself....
Trending Topics
Safety Car
Joined: Jul 2007
Posts: 4,845
Likes: 145
To put more concrete numbers to my earlier example:
http://taxes.about.com/od/2008taxes/..._tax_rates.htm
If each of you makes between $66k and $78k, if you file single, you are taxed at 25%. If you file jointly, you are bumped to 28% because your sum is over $131k.
You can see there's an equal multiplier at 10% and 15% and that it breaks at 25%. You would expect the top end of 25% to be at $157,700 for married people, but this is where they get the shaft - a $25k gap between single and married.
I'm no tax expert, so if someone is more knowledgable can refute this, I'd love to hear it.
http://taxes.about.com/od/2008taxes/..._tax_rates.htm
Single Filing Status
10% on income between $0 and $8,025
15% on the income between $8,025 and $32,550; plus $802.50
25% on the income between $32,550 and $78,850; plus $4,481.25
28% on the income between $78,850 and $164,550; plus $16,056.25
33% on the income between $164,550 and $357,700; plus $40,052.25
35% on the income over $357,700; plus $103,791.75
Married Filing Jointly or Qualifying Widow(er) Filing Status
10% on the income between $0 and $16,050
15% on the income between $16,050 and $65,100; plus $1,605.00
25% on the income between $65,100 and $131,450; plus $8,962.50
28% on the income between $131,450 and $200,300; plus $25,550.00
33% on the income between $200,300 and $357,700; plus $44,828.00
35% on the income over $357,700; plus $96,770.00
10% on income between $0 and $8,025
15% on the income between $8,025 and $32,550; plus $802.50
25% on the income between $32,550 and $78,850; plus $4,481.25
28% on the income between $78,850 and $164,550; plus $16,056.25
33% on the income between $164,550 and $357,700; plus $40,052.25
35% on the income over $357,700; plus $103,791.75
Married Filing Jointly or Qualifying Widow(er) Filing Status
10% on the income between $0 and $16,050
15% on the income between $16,050 and $65,100; plus $1,605.00
25% on the income between $65,100 and $131,450; plus $8,962.50
28% on the income between $131,450 and $200,300; plus $25,550.00
33% on the income between $200,300 and $357,700; plus $44,828.00
35% on the income over $357,700; plus $96,770.00
You can see there's an equal multiplier at 10% and 15% and that it breaks at 25%. You would expect the top end of 25% to be at $157,700 for married people, but this is where they get the shaft - a $25k gap between single and married.
I'm no tax expert, so if someone is more knowledgable can refute this, I'd love to hear it.
Banned
Joined: Aug 2003
Posts: 831
Likes: 8
From: CA
To put more concrete numbers to my earlier example:
http://taxes.about.com/od/2008taxes/..._tax_rates.htm
If each of you makes between $66k and $78k, if you file single, you are taxed at 25%. If you file jointly, you are bumped to 28% because your sum is over $131k.
You can see there's an equal multiplier at 10% and 15% and that it breaks at 25%. You would expect the top end of 25% to be at $157,700 for married people, but this is where they get the shaft - a $25k gap between single and married.
I'm no tax expert, so if someone is more knowledgable can refute this, I'd love to hear it.
http://taxes.about.com/od/2008taxes/..._tax_rates.htm
If each of you makes between $66k and $78k, if you file single, you are taxed at 25%. If you file jointly, you are bumped to 28% because your sum is over $131k.
You can see there's an equal multiplier at 10% and 15% and that it breaks at 25%. You would expect the top end of 25% to be at $157,700 for married people, but this is where they get the shaft - a $25k gap between single and married.
I'm no tax expert, so if someone is more knowledgable can refute this, I'd love to hear it.
I don't use turbo tax and I prepare them old school (by hand). I honestly do not see how you can two separate returns? You can only file 1 tax return.
Safety Car
Joined: Jul 2007
Posts: 4,845
Likes: 145
Here's more stuff for married folk to watch out for:
http://finance.yahoo.com/career-work...Stimulus-Bonus
http://finance.yahoo.com/career-work...Stimulus-Bonus
Joint filers whose spouses work. Each spouse will end up being paid the credit for married couples by each of their employers.
There's a twist, too. Because of the way the withholding tables were set up, each working spouse may be paid up to $600 this year -- instead of up to the $800, Mezistrano said.
In other words, the husband would receive $600 at his job and the wife $600 at her job, for a total of $1,200. Since they're only entitled to $800 total as a couple, that means they would have to pay $400 back to the IRS -- or see their refund reduced by that amount.
There's a twist, too. Because of the way the withholding tables were set up, each working spouse may be paid up to $600 this year -- instead of up to the $800, Mezistrano said.
In other words, the husband would receive $600 at his job and the wife $600 at her job, for a total of $1,200. Since they're only entitled to $800 total as a couple, that means they would have to pay $400 back to the IRS -- or see their refund reduced by that amount.
Thread
Thread Starter
Forum
Replies
Last Post