Think of it this way--it's not that you owe taxes, it's that you DIDN'T give the government an interest free loan for the last year.

Also, be happy you don't live in CA--they're withholding income tax refunds this year because they're hurting so bad budget-wise.

 

Wow! If I lived in Cali I would be PISSED!

 

Because as a taxpayer you're now expected to contribute to the 900+ billion bailout requested by greedy douchbags in suits.

 

I owe money this year too..

 

I'm not sure how I file my taxes this year.

I've been on work comp the entire year, so I've had no taxable income.

 

Unemployment is considered taxable income. Are you sure workman's comp isn't?

I would definitely get someone to check that. If nothing else, you may be eligible for a tax "credit."

 

I've noticed in the last three years that putting "0" on your W4 does not even come close to taking out the maximum amount anymore. I think it's a conspiracy.

 

I was talking with the HR person in my office and they said that the tax codes changed so that they won't be taking out as much anymore. This way they can get you owing money at the end rather than them owing you. If you want to make sure you get something back, you'll have to adjust your W2.

 

The banks and the auto companies requested a bailout, sure. But the bulk of the proposed bailout you're talking about wasn't requested by said "greedy douchebags." It's a government proposal.

 

Personally, I think I am in the clear and getting a big fat refund (yes, I was one of the stupid give the governement an interest free loan people). However, on the corporate side... I don't know yet. I think I've run out of equipment write-offs this year and will have to pony up some dough. Hopefully between the two I will balance out.

 

A word of advice, get it double checked.

My stepdad had done my taxes one year, and it ended up saying I owed the government $600. Mind you this guy works for the IRS as an auditor. I couldn't figure out why, as I claimed 0 on the I9, and have an extra $10 taken out a week.

In reality, I got $1200 back that year after I redid them myself. A big difference.

Always get a second opinion, or a second look at them.

 

Ahh!

For real, check it out--you owe the government X number of dollars for the year no matter what they withheld. If you get a refund, all you're getting back is money that was yours in the first place. You should have had it, and you should have put it somewhere it could work for you--a CD or even just a savings account. Because the government won't pay you interest on the money they "borrowed" from you.

You don't want anything back. Breaking even is best, but it's better to owe them a little than get a large refund, because the latter--if you manage your finances correctly--actually costs you money.

 

Lumpy, if you took a second job, the additional income may have crossed you over the line into a higher bracket on the added money. If you're keeping the same jobs all this year, increase your withholding.

We're due a refund this year because we got married in October and were previously withholding at the higher single rate. I expect to break even for '09, unless she spits out a preemie before New Year's.

 

Yeah all my friends in California are screaming bloody murder right now. It just SUCKS. Glad we got out of there.

I was thinking we owe taxes this year but after a mock calculation, we should be getting around $100 or so back, which is fine by me. Breaking even when it comes to taxes is the best situation in my mind.

 

So is claiming 0 the best thing to do ? I claimed 1 ( myself ) and am getting back a couple hundred.

 

taxes really are a bitch. lucky for me im a starving student below the poverty line (though strangely i'm still living comfortably), so the government gives me back most of my money. last year, however, my father made about $160,000 and had to pay about $40,000 in taxes, then wound up still owing them about $1,000.

 

Tax is one of those things I've never really been able to grasp how it works.

All I know for sure is that I cry a little everytime I open my paycheque and see the amount of tax and national insurance that gets taken from me.

On the mildly up side I'm part of something called a SMART pension scheme which involves various monetary juggling that somehow saves both myself and my company some tax money. This is acheieved by them theoretically paying me less, but contributing to my NI payments or something, that has the net effect of leaving me with more take home pay.

The understanding of any of that just passes me by. As does tax returns in general, thankfully I won't have to file my first one on my own till next year...