tax question

Discussion in 'The Watercooler' started by crazymama30, Jan 14, 2010.

  1. crazymama30

    crazymama30 Active Member

    So how is it possible that I get a hefty refund from the feds, and owe the state just over $1,000? I don't get it. I did my taxes on HR block with my last of the year paystub as a preliminary and that is what I got.

    Any ideas?
  2. DammitJanet

    DammitJanet Well-Known Member Staff Member

    It is possible. States sometimes are more evil than the feds but I would wait till you get that W2, just in case. I would redo the state and check out the parts about your hubby and disabled folks just in case. See if there is anything there you can claim.
  3. DaisyFace

    DaisyFace Love me...Love me not


    It is possible because the state and the fed have different allowable exemptions.

    IOW--What the fed declares "non-taxable", the state can declare "taxable".

    Additionally, when taxes are withheld from you paycheck, the Federal amount withheld is usually much larger than the state amount withheld.

    If you find that you are stuck owing the state because not enough was withheld throught the year, consider adjusting your withholding by filling out a new form W-4 with the employer. Instead of changing the amount of dependents or exemptions...just fill in the box where it asks if you would like an additional amount withheld for state. Just $10 a week could make a big difference at tax time.

    Hope this helps!

  4. crazymama30

    crazymama30 Active Member

    I don't think so. Since according to our wonderful disability system he is not disabled I cannot claim him as disabled. Even if I do itemized it is still not more than our standard deduction. I will wait and redo it, but I get so tired of getting bucks from the feds (EIC) and having to pay the state so much. If I qualify for EIC, it just seems wrong to owe the state so much.
  5. busywend

    busywend Well-Known Member Staff Member

    Sometimes you do not qualify for the State EIC (if they offer one) even though you did qualify for the Federal.
  6. crazymama30

    crazymama30 Active Member

    So is H & R Block online stuff good to use?
  7. Star*

    Star* call 911

    Taxes and rates changed back in March 09). If your employer followed the NEW rates (according to the Presidents new tax relief fund) LESS taxes were taken out of everyones pay, but NOT by much like maybe a dollar or so. This also depends on the state you are in too. I would start by checking your W-4 status with your employer for your state and make sure they are withholding the correct amount. If they didn't then you will have the same problem this year. (first off) You can actually TELL your employer to withold any amount you want. For example: If you are Married, claiming 1 and you make $500 a week, paid weekly and the state tax table says withhold $35.00 - and you think that may not be enough to cover you at the end of the year you can ask your employer to OVER RIDE that amount and have them withhold MORE. It's not a common practice, but it's perfectly legal. Better than trying to pay more at the end of the year.

    Also if you are not sure and do NOT want to ask your employer? You can take your paystubs to ANY state office or branch of the tax office and they will check for you or you can order a book/publication and do it yourself. Most times the tax tables are published on line for each state.

    H&R block is not my favorite for taxes. I used to have them do my taxes and then one year they cost me a LOT of money - fortunately I purchased their very expensive insurance and they had to redo my taxes. After that? I found individual firms a lot more willing and up on the newest breaks and deductions because THEY do it year round. Most (not all) but MOST HR Block and Jackson Hewitt and places like that start advertising for employees in December to work their tax season, NOT all year long. Something to keep in mind. I've used Tax Slayer on line (free for federal $15 for state) for the last 5 years and I've been very happy with them) Their software is very up-to-date on current laws, deductions, etc. They even let me do long form last year and found stuff for me to deduct I had no idea I could deduct.