mfsn wrote:
- quote -

What normal for most people is that every taxpayer is
different and you just can't generalize. Remember that
refunds are a function of what you've already paid (read
withheld in your case) and the actual tax due for the year.

So in your case, compare three figures: your actual tax,
your withholdings, and balances dues for both years. I
THINK you'll see your withholding has not kept pace with
actual tax. Right?

ChEAr$,
Harlan Lunsford, EA n LA

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"mfsn" <mfsneto[at]yahoo.com> wrote:
- quote -

If you want a refund, change your allowances to 1 or 0, but
why would you want a refund? You're just making a tax-free
loan to the government. It's always best to either break
even or owe a little.

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D.F. Manno wrote:
- quote -

Well, I have 2 federal allowances (1 for myself and no one
else can claim me as a dependent + 1 for being single and
have only one job) and 1 state allowance and I am
contributing the maximum IRS limit to my 401k every year. I
have no dependents. The number of allowances have never
changed since I was hired but I was promoted once in 2002.

Last year my tax due was about $250 and this year is about
$400 in federal taxes. My salary didn't increase much (just
the inflation correction). I rent my apartment for living
only, not work. I don't think I can deduct rental or utility
expenses nor the expenses with my car, since it is just for
personal use, right?

I just don't undestand why I can't break even with the IRS:
either my employer is not withholding enough federal taxes
or I'm not deducting everything I can deduct. Is it normal
for most people? What else could it be?

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"mfsn" <mfsneto[at]yahoo.com> wrote:

- quote -

It's hard to tell exactly what's going on without more
information. If I were to hazard a guess, you haven't
changed your withholding despite increases in income.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
"The work goes on, the cause endures, the hope still lives
and the dream will never die."

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mfsn wrote:

- quote -

Yeah, probably!

How many exemptions do you claim on your W4?

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"mfsn" <mfsneto[at]yahoo.com> wrote:

- quote -

It happens - what is your filing status/exemptions on your
W-4?

Gene E. Utterback, EA

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mfsn wrote:

- quote -

Could you explain further how you are deducting your rent,
car and utility expenses?

I'm puzzled, unless you are a doctor and have an office in
your home.

OR, are these expenses on a shedule c?

ChEAr$,
Harlan Lunsford, EA n LA
Wed 23 Feb 2005

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If your income increases, your total tax will probably
increase. It can be more instructive to annual tax
percentage. That is the total tax (fed+SS+state) divided by
gross income. Thats decreased over recent years with Cintons
capital gains tax cut and Bush's earned income and dividend
tax cuts.

If you try one of basic computerized tax programs, they
usually compute your taxes at least three ways: standard
deduction, itemized, and AMT, then tell you the legal
minimum option.

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"mfsn" <mfsneto[at]yahoo.com> wrote:

- quote -

Much more information is needed from you for anyone to
answer your question.

Wayne Brasch, CPA, M. S. Taxation

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"mfsn" <mfsneto[at]yahoo.com> wrote:

- quote -

I'm not sure from your wording whether you're talking about
the taxes you pay or the balance due when you file. If it's
the former, that's normal if your income is increasing more
than the rate of inflation. If the latter, what allowances
are you claiming on your W-4? If you want more withholding
(I don't know why you would), lower the number of allowances
you claim.

--
Phil Marti
Clarksburg, MD

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Every year I pay federal and state taxes the amount I owe is
growing... I only have one source of income and don't deduct
anything (no medical/school expenses, only my rent and
car/utility expenses). Is it normal for most people in this
situation?

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