taxes paid, taxes owed???

[daria26]

What is the name of your state? NJ
Me and my husband filed jointly, our joint income was around 46,000, I went to the tax guy and we found out that not only we won't be getting any money back but that we owe 3,500!!! Is it possible? We don't have kids, we rent an apartement, both pf us had taxes taken out last year. What to do? Thank you

 

[moburkes]

What is the name of your state? NJ
Me and my husband filed jointly, our joint income was around 46,000, I went to the tax guy and we found out that not only we won't be getting any money back but that we owe 3,500!!! Is it possible? We don't have kids, we rent an apartement, both pf us had taxes taken out last year. What to do? Thank you

It is absolutely possible. What to do? Pay the tax bill, then have the appropriate amount of taxes taken from your weekly/biweekly/monthly paychecks, so that this doesn't happen again.

 

[LdiJ]

It is absolutely possible. What to do? Pay the tax bill, then have the appropriate amount of taxes taken from your weekly/biweekly/monthly paychecks, so that this doesn't happen again.

Actually, there could be something wrong here.

For a married couple with no dependents their taxable income after their standard deduction and personal exemptions would be 29100.00

Tax on 29100.00 for a married couple is 3610.00, less the 40.00 telephone credit is 3570.00

So, if they are regular W2 employees with withholding, something is amiss:

1) The preparer did not input their withholding (stranger things have happened)
2) They claimed so many exemptions that virtually no federal taxes were withheld
3) One of them got a 1099 MISC
4) One of the took money out of a retirement account and didn't withhold enough

In any case, its possible that there was an error. They should double check it with another tax professional. I am leaning towards an error simply because of the income level.

 

[moburkes]

Actually, there could be something wrong here.

For a married couple with no dependents their taxable income after their standard deduction and personal exemptions would be 29100.00

Tax on 29100.00 for a married couple is 3610.00, less the 40.00 telephone credit is 3570.00

So, if they are regular W2 employees with withholding, something is amiss:

1) The preparer did not input their withholding (stranger things have happened)
2) They claimed so many exemptions that virtually no federal taxes were withheld
3) One of them got a 1099 MISC
4) One of the took money out of a retirement account and didn't withhold enough

In any case, its possible that there was an error. They should double check it with another tax professional. I am leaning towards an error simply because of the income level.

Agreed. I'm too literal. OP only asked if it was possible. I wasn't going to suggest another tax professional (since that would cost more money), but the free software that is available online.

 

[tranquility]

Obviously, with "about" that amount of income, there are either penalties (or excise taxes on different things) or self employment taxes involved to make it possible without a mistake.

 

[moburkes]

Obviously, with "about" that amount of income, there are either penalties (or excise taxes on different things) or self employment taxes involved to make it possible without a mistake.

Are you saying that it couldn't happen that their withholdings were wrong?

 

[tranquility]

As LdiJ pointed out, they would have to be very wrong to the point of almost no withholding.