My wife and I have a very simple tax situation. We both claim married, -0-, and I also pay an extra $30/check ($780/year). IRS says we owe $4,010 in taxes this year.
I can't figure out WTF is going on. Is one or both of our employers doing something incorrectly? (I doubt it seeing as she works for one of the largest hospital branches in the nation & I work for a government municipality.)
Doesn't claiming -0- mean they're keeping the max amount out each check?
What can we do different to make it where we don't owe in the future besides paying an extra $185 per paycheck? We're sick of this [censored]!

I did notice when I entered we didn't get a "stimulus check" last year or this year, the amount owed went down the $3,600 we received & made it $410 we owed. Change it back to yes, we did receive the "stimulus checks" and it went back up $3,600 to the actual $4,010 we owe. Were we told we'd owe this money back @ tax season? I figured as much but could've sworn they gubmit said that wasn't the case.

I take my taxes to my CPA. Her name is Helen Rose Block. We car HR.

I remember when climbing zero Meant cash back, heck that was 30 years ago. Not so much anymore.

You did not get money(stimulus) due to you both combined making over 150K in 2019

The most out per check is claiming single and 0 I believe.

Standard deduction is built in to the withholding tables. Claiming married and -0- that deduction is 25,100, each of you getting that is 50,200, when you file the return you are only entitled to the 25,100. Change your withholding to "Married but withhold at the single rate" then the standard deduction will be 12,400.

We did get a check last year & the recent one, totaling $3,600. If I enter we did not receive these, my taxes owed drops exactly $3,600 to me owing $410. When I enter we did receive a $2,400 check in 2019 & a $1,200 check in 2020, it goes back up $3,600 to owing $4,010. So these checks didn't stimulate anything seeing as we have to instantly pay it back. It was an absolute sham.

They changed it in 2020 so there is no more "married but withholding @ single rate". Now there's Single or Married Filing Separately, Married Filing Jointly or Head of Household.
I think maybe Head of Household replaced Married but withholding @ single rate?

That’s not you paying it back. That means according to the information on your earnings you should have gotten one. If you didn’t you would get it now by deducting that amount from your tax debt.

Maybe, I think.

Did not know that, but I have been out of the work force for 21 years. I would claim the single or married filing separately, that will be more withholding.

If I wouldn't have got them, I'd owe $410. Since I got them, I owe $4,010. So you're saying if they weren't in the picture @ all then I'd owe my $4,010 + $3,600? So $7,610?!?
Not to mention the extra $30 I paid 26 times thru the year?!?

I'll check into that. Thanks.

Damn glad we didn’t get those [censored] checks.

Yes.

Seems something isn’t adding up correctly. Maybe take your taxes to a pro and have them look at it.

Possible there is a glitch in the free turbotax software or something, or something....

I’m not a CPA, but that’s how I read it as well.

Sounds like you qualify for the $3600 and you got it earlier in the year. If you hadn’t already received the $3600, then they would take it off your tax owed so you would get your money now at tax time.

It’s based off of how much money you make, right? So what if yall’s wages were just over the $150k line. Then you wouldn’t have got the money like you did. But then when you do your taxes and include all expenses or mortgage interest or whatever you have to lower your taxable income, now your taxable income is lower than the $150k line. Now you’d be eligible for the $3600. Only you had to wait until tax time to get it.

The question I would ask is did your situation change from last year? Do you normally pay that amount in tax? I’d probably call an EA or CPA and they will be able to answer with certainty.

No that’s not It at all. For whatever reason you owe $4010 in taxes. Regardless of those checks. Based on your income, you were eligible for stimulus. The system knows that. So if for whatever reason you had been overlooked and did not receive them, the government would make sure you receive them now at tax time. So when you manipulate the system and say that you didn’t get the checks, the system knows you are owed the stimulus check, adds that into your taxes, and you are now getting paid that. In your case, it’s just offsetting what you owe.
Say you owed zero taxes and did not receive the stimulus check as you should have. When you filed taxes, you’d receive $3600 which is the stimulus owed to you. Or if your tax refund was $1000, you’d get $4600.
It’s just a way to ensure that everyone that should have gotten their stimulus did so.

However, since you did actually receive the stimulus, you just owe your taxes. $4010.

I can’t explain It any better than that. But no, no one including you, is paying back the stimulus in their taxes.

You can pay estimated taxes quarterly. When my wife and I both worked we claimed 0 dependents and to prevent that big April 15 payment we paid extra quarterly.

Taxes are legalized theft.

You earn income you pay taxes

You purchase items you pay taxes

You own a house you pay taxes

Kinda yes. Reading between the lines when this all came out it stated that is was basically an advance on your tax return. Depending on what bracket and everything else involved with tax returns, if you are used to getting say a 5k return each year and you got 2,400 in the economic impact whatever, you’d only get 2,600 back in April compared to the 5k you usually get. If you would only get back a $100 or so each year on tax returns, they want the extra back.

Some people don’t also realize the ‘extra’ unemployment they are/were getting is also considered “taxable income” I’m sure more screaming from people will be showing up in the next few months

We both claim zero, use standard deduction, married filing jointly, no dependents and pay an additional $30 26 times a year ($710). I just don’t get how it’s so far off, with us owing $4,010 (it would be $4,720 without the extra $710). IF this is true, there’s clearly not enough being taken out each year but WHY isn’t there enough being taken out? We’re filing exactly how we should be PLUS an extra $710.

Death and taxes.

YESSSSSSSSSSS

I agree, the system isn’t right somehow. Me and the wife same thing, we hold out max amount and past few years have to pay in a few thousand. My CPA said I need to hold out more per month, so I’m at and extra $350 a month. Hopefully this year we don’t have to pay in. We don’t have much to write off so this effects it a lot. They suggested starting a business or something to write off but we have to try and make a profit. So I’m thinking, I make money and to avoid more taxes, spend the money to make more money, but they will want tax on it as well. I gave up. Just pay it and go on.
Compare your most recent paystub, something changed with the withholding this year, not as much is being withheld.

Wasn't there a deal in place that could stop the fed tax withholding when Corona started? Or something to that effect? Maybe the employer/company stopped the withholding and now you are having to pay it back??

There's definitely a glitch somewhere. I used HR Block and my taxes didn't change based off getting the stimulus checks. The IRS has said those should not impact your taxes, unless you got a check that you weren't eligible for.

So, either your company didn't take out enough, or something...

Payroll tax cut from September-Dec was in effect. It was a deferral, not a cut. Trump was planning on making it permanent if he won. He didn't, so now the extra money you "received" is going to have to be paid back.