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| *Ostroff, Fair and Company>>>United States Taxes |
Did I screw up on my tax return? |
I e-filed my tax return and my roommate thinks that I screwed up. My roommate had his parents e-file his, and he ended up owing money. I had 2 jobs, and made over 18,000 last year; and had over 2,800 with held in total from all taxes (federal, social security, and medicare) from both of my jobs. I'm getting about 500 back in total from state and fed tax. Does that seem like an accurate refund? (ps- i file single, and have no dependents) Around $1377 of your withholding should have been for social security and medicare, which would leave around $1423 of the withholding as federal income tax. You don't mention "state" as part of the $2800 withholding, so I'm assuming there wasn't anything withheld for state. If this isn't the case, then your question doesn't give enough detail for anyone to answer. If you're a dependent, then your $18,000 income from your two jobs would give you $12,850 taxable income. If you're single, then the tax on that would be $1554, and from the above numbers, you'd OWE a little over $100, not get a refund. If you're not a dependent, then your taxable income would be $9550, your tax $1059, your refund around $364. This doesn't allow for anything withheld for state, and if it was, your federal withholding would have been smaller than the estimate above so your refund would be even lower - and if nothing was withheld for state, you'd likely owe something to the state, not get a refund from them. So yes, from your question, it sounds like you did something wrong. Repost with more info like what was withheld for each entity (forget social security and medicare, they're long-term and have no affect on your annual taxes now), whether or not your parents can claim you as a dependent, whether you're single (I'm assuming that since you refer to a roommate, you're a college student, and single), and what state you live in, if you want a closer estimate on what you really ow. In the meantime, when that $500 comes in if it does, don't spend it yet - you might need it to pay back the tax you might owe. And by the way, you can't compare refunds with other people to see if you're right or wrong. A refund is just paying back to you of any extra you had withheld that you didn't owe in taxes, and has nothing to do with how much tax you owe altogether. If you and your roomate each buy an $8 pizza, he pays with a $20 and you pay with a $10, then he'll get a lot more change, but that has nothing to do with what you were each charged for the pizza! Your roommate is clueless. With the information you provided there is no way to tell if your return was accurate. Your refund is a result of how much you had withheld (base don your w-4 filed with your employer) vs. how much you owed. Were you claimed on you parents return as a dependent? How much income did you have? How much did you have withheld (federal only, no ss state or medicare)? If you answer those questions, I can tell you what your federal refund should be... Take your total income ($18,000) and subtract $8,450. Then take the net amount (approx. $10,000) and multiply it by 10%. This is your federal tax (about $1,000). Subtract any FEDERAL withholding ONLY. Do not subtract social security, medicare, etc. Whatever is excess should be your federal refund. Your social security and medicare taxes have nothing to do with your federal or state taxes. You would be getting money back if your withholdings were more than your tax liability. Also, if you are not a dependent of your parents you get a personal exemption, which it sounds like your roommate might still be a dependent of his parents, and he would not get the personal exemption, which was $3,300 for 2006. I agree with the first guy "Your roommate is clueless". Also, I would not share that infomation with your roommate at all. I am an accountant, no ones taxes are the same, it sounds like you did your taxes alright. I would not worry about it any longer. Goodluck! I am an accountant Well, it sounds like it's an ok return... I'm assuming that you are a student... You should tell your roommate about the offer that I found to have $500 of your tax return paid for... Tell him to to click on the below link and to follow the instructions! |
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