Anyone good with taxes? Advice appreciated.

[zeion97]

So.. I'm extremely confused I've never been good with taxes but this bore my mind... I've been claiming one all year, and filling single. Well now I'm married and claiming 3 on federal and it says I'm tax exempted..? I've paid a little over 1,000 in already. On the other hand I have only paid about 700 in IL tax and I am now claiming 2 in IL and they took out like half of what they did while I was claiming only 1 . If someone can explain this I would appreciate. Or better yet a little advice on how this could effect me... I do not ant to pay at the end of the year I only bring home about 400 a week before taxes and can't afford to loose more especially caring for my 8 month old.

So.... Any advice would be appreciated...

Also... I did look this up and it confused me... That's why I'm asking, I know how many people are on the forum so hopefully I can get some help!

[Neal]

If I understand you correctly and I'd let somebody else chime in before you take what I say by the book. At least this is also the way it works in Louisiana.

If you claim yourself or single one of them takes out the most per pay check which means you get more at the end of the year while the other takes out a bit less.

When you start claiming kids they take out less and less and I think at like 2 or 3 you get tax exempt for maybe federal? This is to where they don't take anything out of your paycheck and you still get money back at the end of the year.

Again, please let somebody else chime in for sure and remember that we're in different states. Hope this helps.

[zeion97]

If I understand you correctly and I'd let somebody else chime in before you take what I say by the book. At least this is also the way it works in Louisiana.

If you claim yourself or single one of them takes out the most per pay check which means you get more at the end of the year while the other takes out a bit less.

When you start claiming kids they take out less and less and I think at like 2 or 3 you get tax exempt for maybe federal? This is to where they don't take anything out of your paycheck and you still get money back at the end of the year.

Again, please let somebody else chime in for sure and remember that we're in different states. Hope this helps.

I'm thinking that to be honest. Thank you for the help. I was originally told by a coworker I probably wouldn't pay back any more taxes this year because I paid in so much already, but in the end I'm a novice with taxes... I read a few topics but its still rather confusing,,,,

[Neal]

I'm thinking that to be honest. Thank you for the help. I was originally told by a coworker I probably wouldn't pay back any more taxes this year because I paid in so much already, but in the end I'm a novice with taxes... I read a few topics but its still rather confusing,,,,

I'm glad I coud help if I even did at all. Taxes are confusing as crap.

[treeboa]

With Federal You are exempt because the amount of your exemptions by claiming 3 is more than the taxes you would owe. It happens because the exemptions are a set amount and don't vary with income, so if your income is lower, you don't owe anything. You should be fine at the end of the year with the Feds. I'm not sure what Illinois tax laws are, but I would think you would be safe with claiming 2.

[zeion97]

With Federal You are exempt because the amount of your exemptions by claiming 3 is more than the taxes you would owe. It happens because the exemptions are a set amount and don't vary with income, so if your income is lower, you don't owe anything. You should be fine at the end of the year with the Feds. I'm not sure what Illinois tax laws are, but I would think you would be safe with claiming 2.

Thank you very much!! Will I still see a tax return in February or do I chance still owing? And on IL I am hoping to be okay, my wife received 450 back from federal last year but Paid in 100 to IL... oh well.. Thank you!

[wienkeg]

With Federal You are exempt because the amount of your exemptions by claiming 3 is more than the taxes you would owe. It happens because the exemptions are a set amount and don't vary with income, so if your income is lower, you don't owe anything. You should be fine at the end of the year with the Feds. I'm not sure what Illinois tax laws are, but I would think you would be safe with claiming 2.

This.

Best guess, you will get something back at year end from the Feds. Depends on your wife, and other deductions, etc.

My suggestion is just fill out the w-4 form the way it's written, and you'll generally come out ok. If you really want to double check, some online tax prep software is free (taxslayer comes to mind, or go to irs look for freefile). You can always put your income/exemptions/deductions into it for 2012, see what it says. I don't think there will be many major changes for 2013.

Goodluck, taxes are tricky! As for Ill. not familiar, same thing though, fill out the state witholding form the way written, and usually come out ok.

[bcr229]

Thank you very much!! Will I still see a tax return in February or do I chance still owing? And on IL I am hoping to be okay, my wife received 450 back from federal last year but Paid in 100 to IL... oh well.. Thank you!

The return is the paper form you file. The refund is your money FedGov returns to you if you overpaid and gave FedGov an interest-free loan. While you will file a return, you may or may not get a refund.

If you're making about the same amount now that you were last year, and your wife isn't working, redo last year's return as married with 1 dependent versus single. If your wife is working then add in her salary, the numbers should be pretty close unless something has drastically changed.

[sorraia]

There's an IRS calculator available for federal taxes. It isn't the end-all be-all, but it's a a nice reference point for you to see what you should be paying, compared to how much is being withheld, and how you might want to change your withholdings for the rest of the year to come out even in the end. It won't help with your state taxes and withholdings though.

Part of the tricky thing with taxes is it depends on your income, your spouse's income, dependents, and other factors (medical bills, charitable contributions, etc). When it comes to state taxes, it's even trickier because every state has their own laws and rates. I did just find a tax calculator for my state (California), so you might look that up for Illinois. You can plug in your numbers, and see what it says about your tax burden for the rest of the year.