Why is my Tax refund so low?

[GarboFan]

I have tried several different online tax services and they all come back with only a $76 refund?!?!? I have never not gotten back most or all of my Federal tax. I am single, own no property or anything, made around 13,000 last year. Any insight? Thanks!

[nicnac]

What are your withholdings? How much were your federal withholdings for 2006?

[GarboFan]

Federal withholdings for 2006 are $549. Single filing status.

[nicnac]

Federal withholdings for 2006 are $549. Single filing status.

 

It seems the answer lies in the amount of deductions you have on your W-4. I ran the numbers based on $13200. Deduction is 8450 so that leaves your taxable income at 4750. Tax on that amount is $473 and with having $549 taking out, you'd get a $76 refund. You must have your deductions higher than 1 thus not having very much taken out. Which is good or bad depending on if you like refunds.

Edited January 17, 2007 by nicnac

[GarboFan]

I have my deductions on my check as 2. Is that bad? I put that because I am single and because no one can claim me as a dependant which would be 2. Should I change it?

[hurricanesfans27]

that right there is the reason you are only getting 76 back.. 2 withholdings.

[GarboFan]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

[nicnac]

I have my deductions on my check as 2. Is that bad? I put that because I am single and because no one can claim me as a dependant which would be 2. Should I change it?

 

Not bad at all. Like I said it depends on if you prefer to get a larger refund or not. You can go here and check out the withholding calculator.

 

http://www.irs.gov/individuals/article/0,,id=96196,00.html

 

I put in $13,200 and with 1 allowance you'd get a refund of $275. It says if you claim 2, you'll underpay by $75. If your income is going to stay the same, you can do 2 and just pay next year when you file, or adjust your W-4 mid year to get close to the break even point.

[GarboFan]

I have my deductions on my check as 2. Is that bad? I put that because I am single and because no one can claim me as a dependant which would be 2. Should I change it?

 

Not bad at all. Like I said it depends on if you prefer to get a larger refund or not. You can go here and check out the withholding calculator.

 

http://www.irs.gov/individuals/article/0,,id=96196,00.html

 

I put in $13,200 and with 1 allowance you'd get a refund of $275. It says if you claim 2, you'll underpay by $75. If your income is going to stay the same, you can do 2 and just pay next year when you file, or adjust your W-4 mid year to get close to the break even point.

 

I can access my W-4 online. Should I change it now or wait?

[nicnac]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

 

You got more money back in your paycheck instead of getting it at refund time....as I posted above, claiming 1 would have got you $275 back, but you got it spread out in your checks.

[nicnac]

I have my deductions on my check as 2. Is that bad? I put that because I am single and because no one can claim me as a dependant which would be 2. Should I change it?

 

Not bad at all. Like I said it depends on if you prefer to get a larger refund or not. You can go here and check out the withholding calculator.

 

http://www.irs.gov/individuals/article/0,,id=96196,00.html

 

I put in $13,200 and with 1 allowance you'd get a refund of $275. It says if you claim 2, you'll underpay by $75. If your income is going to stay the same, you can do 2 and just pay next year when you file, or adjust your W-4 mid year to get close to the break even point.

 

I can access my W-4 online. Should I change it now or wait?

 

If you want to get back the larger amount I'd change it to 1 allowance now and leave it that way for the year. If you want to get close to not owing/no refund, I'd leave it at 2 for half the year, then change it to 1 for the remainder of the year.

[angeleyeskkhr]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

 

 

You were gonna have to give all that money to the government anyway (minus the $76). Those that get thousands back (and I'm sure it's not EVERYONE), typically have more deductions they can take to offset the tax: EIC, Child tax credit and/or additional child tax credit, SL interest deduction, tuition credits, mortgage interest deductions, health care expenses, dependant care deductions, etc.

[PlatinumPreferred]

OOOOps double post

Edited January 18, 2007 by PlatinumPreferred

[PlatinumPreferred]

So what you are saying is that you would rather lend the Government more than $76.00 interest free by lowering your deductions??? Ideally you want to owe the IRS 0-100.00. Your witholding needs no change...and you don't need a big refund....With a salary of 13k you need the money now....not later. I wouldn't adjust a thing if I were in your shoes.

[keb1965]

I paid the IRS $17k this year I will be darn lucky to get any of it back

[hegemony]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

umm...you already got your money...

[hurricanesfans27]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

 

 

its not your money its the govts.

[belleama]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

 

[GarboFan]

nm

Edited January 18, 2007 by GarboFan

[TeeSharice]

Change your allowance to zero & get a whopping $500 refund next year

[autoxer]

So I just gave the govt. all that money? That seems unfair when everyone else is getting back thousands. I WANT MY MONEY! lol.

Everyone else that is getting back thousands, has paid too much throughout the year. Would you rather have more money taken from each paycheck & returned to you in April?

[gregcjackson]

You just didn't have much taken out. Why is that something to be angry about?

 

If you are single and have no kids, unless you make less than $8450, you aren't going to have a zero tax liability. At least all your income is only in the 10% bracket.

 

Tax refunds arent everything. If you had a spouse and 2 kids on your income, you might get $5000 back. But your family would be in poverty, probably be starving, with no heat, homeless, or worse. So be thankful you don't have to pay any taxes and don't have to worry about too many obligations.

 

People who get big refunds usually either pay a lot of taxes in the first place or don't make enough money to live.

[pepperoncini]

Yup, that's the way I see it as well.

 

Getting back is ALWAYS better than OWING more!

 

We always owe state. I can't figure out WHY but that's the way it goes for us.

[hegemony]

Yup, that's the way I see it as well.

 

Getting back is ALWAYS better than OWING more!

 

We always owe state. I can't figure out WHY but that's the way it goes for us.

nope. why would you want the gov't to have your money during the year instead of being able to use your money to pay down debt or invest?

[angeleyeskkhr]

You just didn't have much taken out. Why is that something to be angry about?

 

If you are single and have no kids, unless you make less than $8450, you aren't going to have a zero tax liability. At least all your income is only in the 10% bracket.

 

Tax refunds arent everything. If you had a spouse and 2 kids on your income, you might get $5000 back. But your family would be in poverty, probably be starving, with no heat, homeless, or worse. So be thankful you don't have to pay any taxes and don't have to worry about too many obligations.

 

People who get big refunds usually either pay a lot of taxes in the first place or don't make enough money to live.

 

 

That's not necessarily true (I guess it would also depend on the definition of big).

 

This year we'll probably get about $3k. Fi paid about $130 in taxes, and we certainly make enough to live.

 

Last year we got about the same. I think in 2004 though, we got about $4k back.