Explain tax return

[mhbaseball]

Even though my mom is a CPA I am confused about the tax issue. So here is the situation. Let me say this. I usually get a tax return of $200 or so when I was working during college probably making 7-10k a year.

Last year I was subbing and working a warehouse job until I started my teaching job in August where I might have made a total of 30k all last year. I got my tax return today and it was over $1,500

Ok well .thinking about next year. Say I well surpass that total for the year 2011. My mom was saying I might owe taxes next year instead of getting a return.

Now my ? is....How is that? I am just confused.

Nothing changed in terms of where I am living, I am still single, and what I claim did not change.

Thanks guys

Matt

[Cam-Mac]

I'll explain it as simple as possible....

You work. Others don't. So you pay their way. It's that simple.

[Mayhem]

i doubt seriously with what a teacher makes you will have to pay in. when i was single i made alot more than a teacher and never had to pay in.

[TMC50]

I'll explain it as simple as possible....

You work. Others don't. So you pay their way. It's that simple.

Pretty simple... lol.... I know what you mean though matt....

That stuff confuses me like no other

[Concho Man]

If your mom is a CPA... Don't ask tax questions to outdoorsy dudes on the www.

[mhbaseball]

I'll explain it as simple as possible....

You work. Others don't. So you pay their way. It's that simple.

Ok well so I jumped from say 10k to 30k and my return jumped from 200 to 1500.

Say I double 30k why wouldnt my return jump proportionally? With everything staying the same. Guess I just dont know how it works.

Concho man: It is just hard to understand sometimes with her and how she explains it. You know how sometimes its easier to hear it from someone else. I need it broken down to 1+1 lol

[Mayhem]

if you make alot and dont have any deductions which you dont you end up having to pay in.

[dustoffer]

Matt--it depends to a degree on what numbers you put on your W-4 form--the one that the personnel/payroll pukes use to figure how much to hold out of your check each pay period. You are single, and can claim whatever number of "exemptions" you wish to get your withholding where you want it. I tried (when I was employed) to get my withholding adjusted so I never got back more than $500 or paid more than $500. Now, understand one thing--exemptions on the W4 aren't the same as dependents on your 1040 Tax Return. If there is just you--that is all the dependents you can claim--your personal one. As far as mom saying what you might owe--sit down with her and do a straw return with your estimated income and other data as you project it to be, and see what you will owe at the end of 2012. Then adjust your W4 to make it come out where you want it--

I used to do this every year, and still do to some extent. I can do it on line with my military retired pay so it is simple to change--every month if I want to.

[Concho Man]

Ok well so I jumped from say 10k to 30k and my return jumped from 200 to 1500.

Say I double 30k why wouldnt my return jump proportionally? With everything staying the same. Guess I just dont know how it works.

Concho man: It is just hard to understand sometimes with her and how she explains it. You know how sometimes its easier to hear it from someone else. I need it broken down to 1+1 lol

I do the same thing as your mom and figured I give her first dibbs. But since you want it from someone else, here goes.

It's all based on how many allowances you choose on your W4 when you begin work at a new job. Yes, there are some changes when you make more and go up in tax brackets, but it ultimately comes down to how much you have deducted for taxes out of each paycheck. The more allowances you claim, the less tax your employer will deduct from your paycheck.

For example, if you make 30k a year and choose 4 allowances on your w4, you may only have 3k in taxes withheld from your checks. When it comes tax time, let's say you owe 5k total taxes on your 30k of annual income. That means you must pay an additional 2k in taxes by April 15.

Then let's say you turn around and change your W4 to 1 allowance the following year and make the same 30k. Your employer withholds 6k due to less allowances and you still owe the same 5k in annual taxes. This means you get a refund (not a return) of 1k that you overpaid throughout the year.

[Coach W]

Correct its all based on your w4.... claim one exemption on your w4 and the federal govt will have too much of your money so they will give some back. claim too many and the federal goverment didnt get their money so you give it to them!

[RdRdrFan]

Matt--it depends to a degree on what numbers you put on your W-4 form--the one that the personnel/payroll pukes use to figure how much to hold out of your check each pay period. You are single, and can claim whatever number of "exemptions" you wish to get your withholding where you want it. I tried (when I was employed) to get my withholding adjusted so I never got back more than $500 or paid more than $500. Now, understand one thing--exemptions on the W4 aren't the same as dependents on your 1040 Tax Return. If there is just you--that is all the dependents you can claim--your personal one. As far as mom saying what you might owe--sit down with her and do a straw return with your estimated income and other data as you project it to be, and see what you will owe at the end of 2012. Then adjust your W4 to make it come out where you want it--

I used to do this every year, and still do to some extent. I can do it on line with my military retired pay so it is simple to change--every month if I want to.

This pretty much sums it up.^^^

What you get back or have to pay in depends on a whole host of factors. The more you make, the higher tax bracket you put yourself in. That is one factor. Another has to do with how much you have held out of your check. So, if your HR folks just plug in a specific percentage based on your income and the info you entered on your W-4, you could end up "in the hole" at the end of the year if you bump into a higher bracket or if the HR folks screw up and miscalculate what needs to be taken out. Basically, if you like getting money back at the end of the year then pay more in.

[jaspermac]

taxes do not work off of proportions- that would be too easy.

Just quick math

$30,000 with $4,300 in standard deducts with $2,750 in exceptions leaves $22,900 in taxable income for a total tax of $3,446 / 12 = $287.16 take this much out of your monthly check


*please note that I am not licensed to give tax or hair care advice.

[blacksunshine]

seems like I have always ended up giving away approximately 16% of my paycheck give or take a little depending on how much extra coin I make that year.......were it all goes, I am not officially sure....but I suspect those people living in the nice section 8 house on the other side of the hood, you know, the one with 8 cars, caddies, escalades, hoopty buicks...yea, that one.....that's where it all goes and to fund fundraising trips to overseas countries and house and keep healthy those that aren't supposed to be in this country....anyway....

you make mo money....that crazy cracka Uncle Sam gonna gank mo

[mhbaseball]

ok thanks guys. Since my exemptions will stay the same, I would assume my tax return will be slightly more then $1500 next year. Is that safe to assume?

My mom does it all for me thank God. Thanks mom. I think I claimed 0 or 1. I forget though. I want to say it is 1, like Coach W mentioned.

Thanks for all the help guys, I really appreciate it

[asttbe]

Not if you change tax brackets

Changing tax brackets is fun. Get a little raise and make less. It's awesome when you give the government a teachers salary every year and people that pay nothing (as in absolutely zero) get a refund or "rebate"