Budget Buster: taxes

[bridget]

To the OP- do you already have your W2s or are you just going by the paystub?

 

[mom2alix]

After reading this thread I am concerned about our withholdings. We did not change our withholdings this year. the calculator says we should be a 8, but my dh is a 4 and I am a 3--yikes. Will we have a huge bill? Any help would be appreciated.

I need to call my employer on Monday and get it fixed. THanks

Don't worry, you shoudln't have a bill. If the calculator says you should claim 8 exemptions, but you are claiming less, you will probably be getting a refund. The more exemptions you claim, the less they withhold from your paychecks and vice versa.

 

[2littleprincesses]

Don't worry, you shoudln't have a bill. If the calculator says you should claim 8 exemptions, but you are claiming less, you will probably be getting a refund. The more exemptions you claim, the less they withhold from your paychecks and vice versa.

Thank you. now less to worry about.

 

[jedijill]

I don't know why but whenever I plug in my info from my last paycheck to esitmate my taxes (running them through an online service like Turbo Tax) it always ends up a lot higher than when I use the info from my W-2 into the same program later.

One thing to remember is that the online tax prep services may have not been updated with the latest tax info due to last minute bills by Congress to extend certain tax credits. I know a few years ago I had to wait to file as Congress was still debating some tax credits/deductions (college tuition, etc) and Turbo Tax wouldn't even let me file until they had updated with the new changes.

My 2 cents.

Jill in CO

 

[HelenePA]

I don't know why but whenever I plug in my info from my last paycheck to esitmate my taxes (running them through an online service like Turbo Tax) it always ends up a lot higher than when I use the info from my W-2 into the same program later.

One thing to remember is that the online tax prep services may have not been updated with the latest tax info due to last minute bills by Congress to extend certain tax credits. I know a few years ago I had to wait to file as Congress was still debating some tax credits/deductions (college tuition, etc) and Turbo Tax wouldn't even let me file until they had updated with the new changes.

My 2 cents.

Jill in CO

Really? Mine is usually spot on. I use the estimator over at H&R Block. we changed our witholdings last year to get more per pay check but we are still getting a ton of money back. I can NOT wait to pay off our car

 

[jedijill]

Really? Mine is usually spot on. I use the estimator over at H&R Block. we changed our witholdings last year to get more per pay check but we are still getting a ton of money back. I can NOT wait to pay off our car

I paid mine off about a year and a half ago. Best feeling in the world! I so love not having a car payment. Plus I keep reading on the Budget Boards about all these smart folks driving cars well over 100K so its motivating me to NOT want to run out an get a new one.

Jill in CO

 

[bridget]

If you use your ytd earnings, that may not be what is reported on your W2 for earnings.

My w2 earnings is less health insurance, dependent care and medical flex acct. It makes a HUGE difference.

 

[jmkjr72]

if you are figuring out off of a pay stub your return should be higher or the amount you owe should be lower because not all of your pay is taxable
ie if you contibute to some sort of retirement account not all of that is taxabel unless its a roth account
if you pay for health ins out of your paycheck thats not taxable income
if you contribute to a health account thats not taxable income
so your agi on your w2 should be lower then on your pay stub