Will I get a refund this year?
yamahaguitargirl asked:
If I completed my W-4 as single, 2 allowances (but I have no children) will I get a refund this year?
It seems that my employer might have withheld too little federal tax. I make $1240 (gross) bi-weekly, and I am a single person who has no children but I claim 1 for myself and 1 for being single just as it instructs on my W-4 and just as I have ALWAYS done for the past 15 years of working. This year, it’s different. In 2007, I made gross wages of $29,900 and they took federal tax of $3636.14, then in 2008 I made gross wages of $32,312.30 and they took federal tax of $3,808.76, now for 2009 I made gross wages of $31,357.48 and they only took $2,284.00 in federal taxes ??? This will result in me owing the IRS! . Why is this year different from last year? I made less this year than last year and I got an almost $900 refund. The only other deductions I have are year end medical at $896.42 and year end health savings account contributions of which $300 was employer and $350 my own. There’s a significant difference it seems. What am I missing?? Why would my employer only take $2,284.00 year end for federal withholding when my salary hasn’t differed that much in the last 3 years?
Adam Waterman
If I completed my W-4 as single, 2 allowances (but I have no children) will I get a refund this year?
It seems that my employer might have withheld too little federal tax. I make $1240 (gross) bi-weekly, and I am a single person who has no children but I claim 1 for myself and 1 for being single just as it instructs on my W-4 and just as I have ALWAYS done for the past 15 years of working. This year, it’s different. In 2007, I made gross wages of $29,900 and they took federal tax of $3636.14, then in 2008 I made gross wages of $32,312.30 and they took federal tax of $3,808.76, now for 2009 I made gross wages of $31,357.48 and they only took $2,284.00 in federal taxes ??? This will result in me owing the IRS! . Why is this year different from last year? I made less this year than last year and I got an almost $900 refund. The only other deductions I have are year end medical at $896.42 and year end health savings account contributions of which $300 was employer and $350 my own. There’s a significant difference it seems. What am I missing?? Why would my employer only take $2,284.00 year end for federal withholding when my salary hasn’t differed that much in the last 3 years?
Adam Waterman
A little less was withheld because you made less, plus less was withheld because the tables were changed due to the Making Work Pay credit.
Filing 2 on your W-4 in your situation says you’ll either get a small refund or owe a little bit, within a few hundred dollars either way. You might want to change that to one allowance.
Looks like your tax will be $2486 and you’ll owe $202.
An excellent outcome though since you had other deductions from your withholdings for tax bill is as anyone could be closer to use 200 of allowances the hsa from your gross income if your pay rose and fell.