Curious about why people owe taxes

• Curious about why people owe taxes rwbeagles Posted : 4/17/2007 12:23:38 PM I am 30something and married and have kids and own a home and don't work. So obviously we've been getting big refunds for a while.   BUT when I was 20something, living in either Cali or Texas...unmarried....no kids....retail job...either living at home or with my DH as renters..we never owned anything? I am horrified at the thought that perhaps I owe millions now because I missed something...lol...   Why would a person owe the IRS because they don't have kids, or a home, or etc reasons that came up on the other threads? I am clueless so please start simple and move up from there, [] LIKE 143 REPLIES 1992 VIEWS LAST POST SNOWNOSE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• Ashley Posted : 4/17/2007 12:25:17 PM Were you a student? or your DH? Generally people who are in school get a return. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• magilacudy Posted : 4/17/2007 12:27:27 PM I'm not sure, because I'm not all that great with this stuff, but I believe you would pay if you own nothing and have no family because you have no one to claim. DH gets more back because he can claim me and the kids, where as he never used to get so much back when he was on his own. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• rwbeagles Posted : 4/17/2007 12:28:25 PM Nope! I went straight from GED to work life.   My DH and I did not marry until we owned a home...so prior to that he was a fiancee, we rented...and we filed separately...I think. Now...bear with me I'm a dunce....when I worked I always claimed myself as a dependant, after age 18 because I was told to. That might factor in someplace? [&:] 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• mrstjohnson Posted : 4/17/2007 12:39:43 PM When DH and I were single we both got money back...we both claimed 0.    DH was in school for a while after we were married and he didn't work so we ended up getting alot of money back.  We were still renting so the only difference was one income was now spread among two people.   Once we both started working (didn't own a house or have kids...no deductions) we ended up owing money.  I claimed 2 (forgot to change) and he claimed 0.  The reason is indidvidually they took out enough money but together we fell into a higher tax bracket and got nailed - that's the marriage tax the talk about.   Now, we get money back because I changed my exemptions. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• snownose Posted : 4/17/2007 12:40:22 PM DH, you and 2 kids makes 4 people on one income, deductions is what gives you a tax break, also you now own a house and you get a tax break on that as well, so would be student loans.......... 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• cakana Posted : 4/17/2007 12:45:05 PM Well just about everyone owes taxes, but you likely paid enough throughout the year that you didn't owe more at tax time.  How many deductions you claim makes the biggest difference.  If you claim enough or too many even, you'll get a larger paycheck but might owe at tax time.  If you claim zero, your paycheck will be smaller but you might get some back at tax time.  I laugh when people are excited about thier huge refund as if it's a gift from Uncle Sam.  I love to get a refund too, but it only means I'm getting back what I overpaid.  Sweet, huh?  []   The above is a simple explanation, but it gets more complicated if you have investments (interest, dividends, capital gains) and have to pay on those.  My dad passed away last year and there was an IRA and an annuity that cashed out.  I needed a drink after I saw what we had to pay [:@] 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• KCSO Posted : 4/17/2007 12:46:08 PM In general, owing a small amount is preferable to getting a large refund.  If you have the funds to pay it, owing any amount is preferable to getting a refund.  I'm not sure why the refund idea always appeals to everyone.  We're getting a decent sized refund this year, which tips me off that we need to revisit our deductions for next year to see if we can prevent it happening again. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• rwbeagles Posted : 4/17/2007 12:48:38 PM well in our case we like it because we quite simply would NOT save the same amount if we brought it home...it'd be spent and we'd have nothing as far as lump sum in Feb. So in our case it's lack of willpower....I think Erin (jones) said before it's like a savings acct with no interest? But to us...still better than having found you spent the equivalent of your refund on "crap" thruout the year lol! 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• snownose Posted : 4/17/2007 1:09:27 PM well in our case we like it because we quite simply would NOT save the same amount if we brought it home...it'd be spent and we'd have nothing as far as lump sum in Feb. So in our case it's lack of willpower....I think Erin (jones) said before it's like a savings acct with no interest? But to us...still better than having found you spent the equivalent of your refund on "crap" thruout the year lol!     Btw., if you have more kids, you get an even bigger tax break......[][] 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• sharismom Posted : 4/17/2007 1:13:38 PM [color=#003366]I think Erin (jones) said before it's like a savings acct with no interest? [/color]   It is, except that the government gets to use the money and keep the interest.   [font="microsoft sans serif"][color=#003366]Why would a person owe the IRS because they don't have kids, or a home, or etc reasons that came up on the other threads? [/color][/font]   I think this was explained well by Cathy.  My question is sort of the opposite:  how come certain people can work very minimal hours, frequently not earn enough to have taxes taken out, then file at the end of the year and end up getting back money - as in a few thousand?  I have a former step-daughter who does this yearly.  She works off and on throughout the year, claims Earned Income Credit on her taxes (3 kids, she's not married), and gets back more than she "earned" the whole year.  That's why we owe, to pay for all the government assistance that keeps her in housing, food stamps, and medical care.   I just don't understand how one gets a refund of what they didn't pay.   Sorry if I went slightly OT.     0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• rwbeagles Posted : 4/17/2007 1:18:44 PM LOL snownose...I tried to tell the DH that but he keeps bringing up the "more college money too" thing...hmmm...lol!   0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• cyclefiend2000 Posted : 4/17/2007 1:30:55 PM this is my own personal experience.... i was single. did not own a house. always got between $500-1000 back at the end of the year. never got to claim school expenses. my parents took that one. even after school was over still got a sizable refund. everyone said get married. you get a tax break. falicy. we may have gotten a small, insignificant break, but not what i was led to believe. everyone said buy a house and reap tax breaks. falicy. the break we get is so small renting is almost a better deal. you dont ever own it, but someone else has to fix all the stuff that gets broken. since 2002, we have owed anwhere from $500 to $1200 at the end of the year. and part of that time i was taking some more college courses and we got a tax break for that or we would have owed more. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• cakana Posted : 4/17/2007 1:31:17 PM have a former step-daughter who does this yearly. She works off and on throughout the year, claims Earned Income Credit on her taxes (3 kids, she's not married), and gets back more than she "earned" the whole year.   Tina - that's one I don't get either.  I worked with a woman who had the same situation and at first I thought she must be doing something wrong on her taxes, but she hadn't.  0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login
• cyclefiend2000 Posted : 4/17/2007 1:34:07 PM maybe i need to hire one of those shifty tax people. i would almost be willing to risk an audit just to not have to pay. not saying i even want a refund, just not pay. curious.... can you make a payment in person? i would love to pay all $1200 in unrolled pennies. 0 LIKE Like Share You have posted to a forum that requires a moderator to approve posts before they are publicly available. Hey, it's way more fun when you sign up or log in Connect With Connect With Sign Up Login