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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15196
Experience:  15years with H & R Block. Divisional leader, Instructor
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I think I have too many deductions for my living situation,

Customer Question

I think I have too many deductions for my living situation
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am currently at 53,000 before taxes and after taxes its 32,000. I would like to know why I am I losing almost 20,000
JA: Is there anything else important you think the accountant should know?
Customer: I keep owing money back in Federal Taxes and I can not understand how if they are taking so much out in deductions
Submitted: 7 months ago.
Category: Tax
Expert:  Robin D. replied 7 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 7 months ago.

Not everything that gets deducted form your pay is for income tax. There is Social Security and Medicare that is deducted too.

If you are single and your receive $53000 gross and are single your taxable income would be about $42,700 after your exemption and standard deduction.

Your federal tax would be $6,500

Expert:  Robin D. replied 7 months ago.

They would have also withheld for your half of the SS and Medicare ($3,286.00 and $768.50)

Expert:  Robin D. replied 7 months ago.

You did not mention state but if you are in a state that has income tax there is that as well.

Customer: replied 7 months ago.
but I am married should I be losing this much
Expert:  Robin D. replied 7 months ago.

If you are married then it matters if your spouse works too. On your W4 you would list married but if your spouse works then you should not list them as a dependent. When you file your tax return both your incomes are added together so that matters.

Expert:  Robin D. replied 7 months ago.

Does your spouse work?

Customer: replied 7 months ago.
she works too
Expert:  Robin D. replied 7 months ago.

Then you each would claim married but the one that makes less may want to claim Married but withhold at the higher standard rate.

Expert:  Robin D. replied 7 months ago.

That will assist you in not owing at the end of the year when you file your return.

Customer: replied 7 months ago.
OK this would be the best for our situation? Married at a higher rate
Expert:  Robin D. replied 7 months ago.

That is just for the one of you that makes the lesser amount.

https://www.irs.gov/individuals/irs-withholding-calculator

That is a link to the IRS W4 calculator. It is easy just enter your amounts and see how much you will have

Expert:  Robin D. replied 7 months ago.

If you rate in a positive way (look for the STARS or SMILEY FACES) I am credited with responding. It adds nothing to your costs but it assists me.

Expert:  Robin D. replied 7 months ago.

Hi, I am checking back to see how you liked the W4 calculator.