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Author: josefus Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120820  
Subject: Why do I always owe? Date: 1/31/2000 9:52 PM
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My wife and I for the past 2 years are will owe approximately 4k in taxes. We both claim 1 on our taxes and write off everything we can think of. We haven't met with an accountant yet. Does anyone have any clues. I'm tired of saving for the IRS.
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26573 of 120820
Subject: Re: Why do I always owe? Date: 2/1/2000 6:22 AM
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<< My wife and I for the past 2 years are will owe approximately 4k in taxes. We both claim 1 on our taxes and write off everything we can think of. We haven't met with an accountant yet. Does anyone have any clues. >>

Have you tried going through the worksheet on the W-4, paying special attention to the two earner part? If you want to avoid the balance due, you're going to have to increase your withholding.

Phil Marti
Tax Preparer

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Author: horlander One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26620 of 120820
Subject: Re: Why do I always owe? Date: 2/1/2000 2:19 PM
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I am afraid you are going to have to put a little more effort into your withholding than just claiming married, 1. That may seem like a logical withholding to you but, do you think it can cover all the different situations out there? Married, but only one spouse working; married, both spouses work, but earn very unequal amounts; married, both work and earn equal amounts; and that doesn't even get into whether you itemize deductions, etc.

The previous advice is good, but even using the W-4 worksheet, check it against what income tax you owe this year. If your situation doesn't change significantly between this year and next, your taxes shouldn't change significantly either. In other words, you should be withholding (between you and your spouse) $4000/12 = $333 more a month than you are now. If the W-4 worksheet doesn't give a similar amount, keep researching!

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26647 of 120820
Subject: Re: Why do I always owe? Date: 2/1/2000 3:22 PM
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<< My wife and I for the past 2 years are will owe approximately 4k in taxes. We both claim 1 on our taxes and write off everything we can think of. We haven't met with an accountant yet. Does anyone have any clues. >>

Welcome to the marriage penalty. Obviously, both of you claiming "1" on your W-4 form won't cut it. You may both have to go to zero. And even with that you might have to make additional withholding contributions (as has already been pointed out).

You can read more about the marriage penalty and how it works in the Taxes FAQ area.

TMF Taxes
Roy

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Author: RyanD Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26650 of 120820
Subject: Re: Why do I always owe? Date: 2/1/2000 3:35 PM
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<< My wife and I for the past 2 years are will owe approximately 4k in taxes. We both claim 1 on our taxes and write off everything we can think of. We haven't met with an accountant yet. Does anyone have any clues. >>

Vote Republican. ;>)

Ryno

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Author: josefus Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26703 of 120820
Subject: Re: Why do I always owe? Date: 2/1/2000 7:34 PM
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Thanks for the advise from everyone. I was hoping to avoid paying more taxes. Both my wife and I do make similar salaries. Because we both have part time jobs, it also ads up.

I guess, we'll have to suck it up. I'll definetely check into the w4 mentioned earlier.

Thanks again!

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Author: LeoKam Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26727 of 120820
Subject: Re: Why do I always owe? Date: 2/2/2000 12:25 AM
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Then we'll have another big rise in inflation and another quadrupling of our national debt like during the Reagan & Bush presidentries.

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Author: RyanD Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26735 of 120820
Subject: Re: Why do I always owe? Date: 2/2/2000 1:35 AM
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>>Then we'll have another big rise in inflation and another quadrupling of our national debt like during the Reagan & Bush presidentries<<

I think you've been listening too much to the national media, who voted 90% Democrat the last couple elections. The Democrats controlled Congress during Reagan and Bush's presidencies. You can thank them for our national debt.

P.S. Why don't you fill out your profile so we'll know a little bit about you, Leo?

Ryno

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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26737 of 120820
Subject: Re: Why do I always owe? Date: 2/2/2000 3:37 AM
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RyanD writes (in part):

I think you've been listening too much to the national media, who voted 90% Democrat the last couple elections. The Democrats controlled Congress during Reagan and Bush's presidencies.

I reply:

I'd be fascinated to know the source for your first statement. Until now, I've always had great confidence in the secret ballot.

As to your second statement, it's demonstrably false. Republicans controlled the Senate from 1981-87, and with the help of "Boll Weevil" Democrats, Reagan also had a working majority in the House during his first two years in office. --Bob

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Author: LeoKam Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26794 of 120820
Subject: Re: Why do I always owe? Date: 2/2/2000 1:57 PM
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Right on Bob!!! We taxpayers also had to pick up the tab on $800 toilet seats, $500 screwdrivers while being screwed, etc., etc., etc.

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Author: TimBini One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27321 of 120820
Subject: Re: Why do I always owe? Date: 2/5/2000 12:10 PM
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>>Right on Bob!!! We taxpayers also had to pick up the >>tab on $800 toilet seats, $500 screwdrivers while >>being screwed, etc., etc.,
>> etc.

You guys have to be kidding! I can understand (disagree with, but understand) voting the Dem ticket but to think they will lower a tax bill or do anything to stroke the economy is virtually ridiculous. Even Clinton gave Reagan/Bush the credit for initiating the policies (i.e. greatly cutting taxes) that led to the upswing.

And if you think $800 dollar toilet seats are bad, wait til Gore/Bradley try to get a Gov't controlled healthcare and/or daycare system going. How quick would all of the "HMO Bill of Rights" go out the window. Could we really sue the gov't if we get screwed? I think a reasonable case can be made that one of the big reasons we have extra money here is we no longer have to pour the massive amounts into defense, after Reagan took them down. Yes, we went into debt, but without the widespread communism, (actually not really communist) the world is a much better place.

I guess this is a bit off topic, but go over to Bush's homepage and there is even a simple calculator to see how much you would save off of the marriage penalty.

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Author: jfkesq Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27758 of 120820
Subject: Re: Why do I always owe? Date: 2/8/2000 12:14 AM
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Increase your withholding and make sure both employers know that you are both working. Otherwise, employer number 1 will withhold a certain amount thinking your are the only wage earner and employer 2 will do the same.

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Author: jfkesq Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27759 of 120820
Subject: Re: Why do I always owe? Date: 2/8/2000 12:16 AM
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Oh yea, buy a house too, that helps with the mortgage deduction on the interest ( and I like the vote republican idea too)

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