Your withholding is based on how you file W-4 form -
If you are single, do not have any dependents, standard deduction, no additional credits or deduction - generally - you should file as Single with two allowances.
If you provide your gross income - I will help estimate your tax liability and withholding.
2006 - Gross Income $16,333; I owed Federal $57, State $18; 2 expemptions (not sure)
2007 - Gross Income $16194; I owed Federal $401, State 227 ; 3 exemptions
These taxes were paid through The Stimulus Package (Thank GOD!)
2008 Gross : $18612.16; Federal $691!! State $457; 2 Exemptions
all years I filed single, no dependents, no special credits deductions, etc.
I've since dropped down to 1exemption... I'm also paying monthly for backtaxes for '96 that accrued 10yr penalty fees because one of w2 was not attached to my taxes that year and the IRS filed them for me. I only found that out 10yrs later when my bankruptcy attorney told me this was outstanding in '05-06. What can I do? I'm also paying back student loans.
adjusted gross income $16,333
taxable income $16,333-$5150-$3300=$7883
tax liability $805
If you filed W-4 as Single with 2 allowances (that is correct filing) - your withholding should be $708 and would owe ~$100
adjusted gross income $16,194
taxable income $16,194-$5350-$3400=$7444
tax liability $744
If you filed W-4 as Single with 3 allowances (that is incorrect filing) - your withholding should be $334 and would owe ~$400
You should be filing 2 allowances - your withholding should be $674 and would owe ~$70
adjusted gross income $18,612
taxable income $18,612-$5450-$3500=$9662
tax liability $1048
If you filed W-4 as Single with 2 allowances (that is correct filing) - your withholding should be $962 and would owe ~$100
It is possible that you (or your payroll person) changed withholding not at the beginning of the year - and that resulted large net liability - that should be investigated to identify the real reason.
2009 - estimated
adjusted gross income $18,612 - assumed
taxable income $18,612-$5700-$3650=$9262
tax liability $972
If you filed W-4 as Single with 2 allowances (that is correct filing) - your withholding should be $459 - you should claim a new for 2009 payroll tax credit up to $400 per person - and would owe ~$100
If you do not want to owe - following are options:
-- on W-4 form mark additional withholding - for instance $5 per paycheck
-- you may also put 1 allowance instead of two - that will resulted in $1006 withholding and you will be getting a credit ~$400.
Please be aware as any changes will be done not at the beginning of the year - their affects should be prorated.
If you are paying student loan - you should receive a form 1099-E - http://www.irs.gov/pub/irs-pdf/f1098e.pdf - that reports the interest you paid - that is deductible on your tax return.
If you have outstanding tax debt - I suggest to set installment agreement with the IRS.
Let me know if you need any help.