A Tax Question

[XNine]

So, I have two W2's. And well, looking at it, it looks like I'll owe 432.00 if I file them together. But I'll get back about 200.00 if I file them separately. My question: CAN I file them separately? Or do they both have to go on the same return? (please tell me they don't..only if it's true though).

 

[iMeowbot]

The IRS system will kick out a letter warning you about possible identity theft.

 

[XNine]

The IRS system will kick out a letter warning you about possible identity theft.

D'oh!
Well... Ummm. Crap!

 

[iMeowbot]

On the plus side, you still have a few weeks to hunt around for deductions. Good luck!

 

[XNine]

No, I figured out where it all went wrong. My main job (the other was a part time gig at Apple) didn't take out all of the taxes it should have. ^&*%^%$%#^%$#^%&$&^%$&^%$&%^#^$^#^&%!!!!!!!!!

 

[Deepdale]

No, I figured out where it all went wrong. My main job (the other was a part time gig at Apple) didn't take out all of the taxes it should have.

Inadequate withholding is the culprit in many situations such as yours. It is not that the primary job failed to take out enough, but rather they complied with the way Form W-4 was completed. Just be sure to file on time even if you cannot fully pay the $432.00.

Otherwise, you will be assessed a failure to file penalty (5% per month not to exceed 25% on net tax owed), plus interest at 7% until full payment is made. For those considering an extension request in April, be aware it only permits you to file a return (not pay taxes owed) until the later date while avoiding the late filing penalty, but a failure to pay tax penalty will be computed if the numbers require that. Also, there is no exemption from statutory interest being charged.

 

[Kwyjibo]

So, I have two W2's. And well, looking at it, it looks like I'll owe 432.00 if I file them together. But I'll get back about 200.00 if I file them separately. My question: CAN I file them separately? Or do they both have to go on the same return? (please tell me they don't..only if it's true though).

Doesn't this sound like FRAUD to you? I mean ... come on.

 

[Deepdale]

My question: CAN I file them separately?

Since you initiate the filing process, you can do what you please. This is what will likely happen if you opt for the creative method ... under your SSN there will be a duplicate filing and then the numbers on both separate returns will be merged together properly.

It might also generate additional correspondence and referrals. Now doesn't doing it the right way seem a bit easier to deal with?

 

[Timepass]

No, I figured out where it all went wrong. My main job (the other was a part time gig at Apple) didn't take out all of the taxes it should have. ^&*%^%$%#^%$#^%&$&^%$&^%$&%^#^$^#^&%!!!!!!!!!

I always find it funny when people complain about not getting a tax return.

I like my dads view on tax refunds. He rather not get them but rather pay a little extra at Tax time. Reason for it is because you pay the same amount of Taxes in the end either way. When you get a refund that means you over payed. but you dont get any intersted off that money at all the goverment got all the intersted off of it. Now if you have to pay that means you got to keep the extra intersted off the money for that much longer so you net income for the year would be just a little higher because of instersted.

Best way to go about is you dont want to get any refund or pay extra. That means the correct amount was taken out.

 

[Deepdale]

When you get a refund that means you over payed. but you dont get any intersted off that money at all ...

Some people prefer to be overwithheld because it will result in a more substantial refund and helps them to save, while avoiding overspending that might result if it was readily available to them in their paycheck. The government pays interest when they do not get a refund issued within 45 days of receiving a return. Besides, when overpayment interest is added to a refund, that amount is fully taxed as interest income for the tax return filed for the year of receipt.

 

[Kwyjibo]

I always find it funny when people complain about not getting a tax return.

I like my dads view on tax refunds. He rather not get them but rather pay a little extra at Tax time. Reason for it is because you pay the same amount of Taxes in the end either way. When you get a refund that means you over payed. but you dont get any intersted off that money at all the goverment got all the intersted off of it. Now if you have to pay that means you got to keep the extra intersted off the money for that much longer so you net income for the year would be just a little higher because of instersted.

Best way to go about is you dont want to get any refund or pay extra. That means the correct amount was taken out.

you've oversimplified something that is probably one of the most complex things around. In the case of the original poster, he had a second part time job, it would be kind of hard for that job to figure out what bracket he's in for his other job and project so that he has the proper amount. your dad is right about the time value of money, but most people aren't always that responsible. As americans our savings rate is ... -2% ish, meaning we spend more than our means, so its probably better that they're taking out a decent amount because I can't imagine post people could put up their taxes if we didn't take out taxes during each check.

 

[XNine]

you've oversimplified something that is probably one of the most complex things around. In the case of the original poster, he had a second part time job, it would be kind of hard for that job to figure out what bracket he's in for his other job and project so that he has the proper amount. your dad is right about the time value of money, but most people aren't always that responsible. As americans our savings rate is ... -2% ish, meaning we spend more than our means, so its probably better that they're taking out a decent amount because I can't imagine post people could put up their taxes if we didn't take out taxes during each check.

I claimed SINGLE on both forms. My main job just screwed me is all.

 

[Deepdale]

I claimed SINGLE on both forms. My main job just screwed me is all.

The blame has to fall somewhere, and that usually means other than with the person holding down the jobs in question. When multiple jobs are worked and the filing status is single with one exemption claimed (you did not mention whether one or zero was in effect), having an additional amount taken out above what the chart mandates is advisable - otherwise, one will come up short as illustrated in your case.

 

[XNine]

The blame has to fall somewhere, and that usually means other than with the person holding down the jobs in question. When multiple jobs are worked and the filing status is single with one exemption claimed (you did not mention whether one or zero was in effect), having an additional amount taken out above what the chart mandates is advisable - otherwise, one will come up short as illustrated in your case.

Nope, filed Single, as in 1 on both of them.. still scratching my head wondering why they did this.

 

[Kwyjibo]

Nope, filed Single, as in 1 on both of them.. still scratching my head wondering why they did this.

ok NOBODY did anything to you. let me try and explain what probably happened, there are special circumstances and deductions and things that I will completely gloss over. Also not having actual figures its even harder to estimate. Employers have formulas to figure out, based on how much you're project to make how much they take out per person. This formula can be slightly modified by the employee, how much you claim, marriage, over 65. But those aren't causing this problem most likely.

This is an example of EXACTLY what deepdale is talking about.

You told us one job was part time (job B) so I'll assume the other was full time (job A). Lets say theres a tax bracket at 20k and 25% after that. You pay 2,500 + 25% of the rest of your income.

Job A: You make 30,000 this year, on salary or otherwise. The employer knows this and tries to take out your total tax and estimate upwards slightly. so you'd pay 2,500 + 10,000(.25) for a total tax bill of 5,000

Job B: You earn 5,000. this employer doesn't know about your other job, even if they do they don't have to account for that. The employer takes out some taxes ... probably not that much lets say 500$. And you'd get a refund because you made so little.

Now what you want to do, is pay them seperately because according to seperate charts you get a refund ...

Now lets look at how you actually have to pay. 35,000 total earned, and you pay 2,500 + 15,000*(.25) = 6250. Are you following this? Nobody did anything to you, they both took out proper taxes, you just didn't pay all your taxes. YOU HAVE EXTRA MONEY RIGHT NOW THAT YOU HAVEN"T PAID THE GOVERMENT! - I don't feel sorry for you. So how do you fix this? Either have one of the jobs take out an extra 10$ / week if your tax bill is really that big, or just have the same situation next year or quit the part time job. I also made the assumption that you didn't skip into another bracket, again that would affect the bottom line quite a bit

 

[rdowns]

I claimed SINGLE on both forms. My main job just screwed me is all.

Stop saying you were screwed, you were not. Taxes were withheld based on your income at the job and what you put on your W-4. Your employer is not responsible for you having another job. You are responsible for making sure your W-4 is up to date based on other earnings you might have.

 

[skubish]

Nope, filed Single, as in 1 on both of them.. still scratching my head wondering why they did this.

You know you can claim 0 right?
If you are single and earn a middle class wage or above you are better off
claiming zero if you want money back.

 

[XNine]

Alright, an early morning visit with the director of accounting shows that I did indeed claim 1 on my form, but the lady who entered it into the system, marked it as 2 (Head of household)... I have no children. Except my Dog which is a big baby.

So, since the money is already "gone," there isn't anything they can do except fix it for this year.

 

[Kwyjibo]

Did you change it to Claim 0? Claiming 1 might not get that return you're expecting especially if its for both jobs ...

 

[Deepdale]

So, since the money is already "gone," there isn't anything they can do except fix it for this year.

That's fine ... but remember that if you once again will work more than one job during 2006, the best option would be to claim filing status single, zero exemptions and also consider having an additional amount (specifically stated by you) to be withheld in addition to what the employer's tax guide states.

 

[XNine]

Did you change it to Claim 0? Claiming 1 might not get that return you're expecting especially if its for both jobs ...

No. Given that I don't work for Apple anymore, claiming 1 will be okay because I'll remain in my current tax bracket, it'll give me more money on my pay check and just a small amount (like 100-200) return, which I'm fine with.

What happened is that they put me in the system as 2 at my main job, and Apple had me as 1 (like I wanted), and I would have been okay had both claimed me as 1, but since I was put down as 2 at my main job, and the extra money pushed me into a higher tax bracket, it screwed me.

Ah well, there's always next year. I'm also going to keep detailed records of any clothing I buy for work (ties, shirts, pants) this year. That way I can deduct that from my taxes next time. Because I might wear collard dress shirts while out of work, I certainly wouldn't buy the high quality ones I do for work, nor ties (the corporate noose).