A tax question. please help?
what the accountant did was to tax away from me, that i get only 900 a week. so.the question is.
after next years tax filing. how much money would i get back from the government? would it be 3 to 4 grand? please say yes.
any help would be greatly appreciated. give u 10 points.
Answer:
Assuming that you are single you will have $8450 in standard deduction and personal exemption which leaves $56,550 in taxable income. If you have no other deductions or credits your tax will be $10,809 and you will have withheld $18,200 which would give you a refund of $7,391. Unless there are circumstances you have not given us should this be your personal accountant, fire him!
Ah yes 3-4 grand. 10 pts please
there are to many things youve not included for anyone to give you a definate answer, but if your not married and have no kids, your accountant is trying to keep you from having to pay big at the end of the season, as you apparantly have no deductions. I doubt you will get a big refund unless you find some deductions, your accoutant wouldnt just do this to you for no reason, your in a high tax bracket from the amount you make and you dont make enough to get the big tax breaks they only give to the rich.
Not sure what you mean by "accountant taxed away from me" at 900.00 per week, you probably paid $18,200 in Federal taxes for the year which is 28% if you have no other deductions besides dependant and standard deduction, you won't get very much back. You need to give a lot more information.
Your refund won't be 7k as Matthew has stated. In the $350 per week is also FICA, which is not reimburseable. Also included is State and City taxes, which Matthew did not include in his calculation.
Are you having any insurance (ie medical) deducted? The medical portion would not be taxable, nor would any 401(k) contributions.
You live in a very high tax jurisdiction. You will be paying Federal, NY state and NY city taxes. Without any deductions, you could actually end up OWING. Sorry for the potential bad news. If you have questions about what your accountant is doing, you should be asking him..thats what you are paying for.
First question is “do you have a employer or are you a contractor?”
I assumed you are an employee and your earned income had withholding tax taken out to pay federal, state and city income tax. The withholding tax payment is set by a federal form call W-4. You fill this out when you first get hired. This form tell your boss how much you should (withhold) take money out off your pay check to pay your federal, state and city income tax so at the end of the year your tax is already pay to the federal, state of NY and may be City of NY.
At the end of the year you do a income tax return to balance out how much tax you pay vs. how much tax that is due to the government. One tax returns to each institution. Another word one return to the federal call “Federal Income Tax Return 1040” another to the state of NY call (IT 201).
Your accountant file a federal and the state at end of the year income tax return but I don’t know what your withholding are you a legal resident in U.S. These questions will effect how much you get back but just base on what you give me here is what I know.
There are in general 9 elements in a federal income tax return.
1.Filing Status
2.AGI
3.Minus Deduction
4.Minus Exemption
5.Equal to Taxable Income
6.TAX is base on taxable income
7.Minus Credit
8.Minus Payment
9.Equal Tax due/ Refund
1) Filing status how U.S. government declare you under a particular category, it may be “Single”, “Married Joint”, Married Separate”, or “Head of Household”
2) AGI (Adjusted Gross Income) or another word INCOME. Any and all income be it from selling stock to wages.
3) Deduction, there is 2 kind and they are Standard and Itemized.
If you use Standard deduction for the year 2005 and if you are US legal resident and filing status is single then it is $5,000.00. which mean if you earn $5,000.00 or less it’s not taxable.
You use "Itemized Deduction" only if you can beat "standard deduction" the Itemized Deductions other wise known as Schedule A has 7 components and they are the following
1.medical and dental expenses
2.tax you pay
a.Income tax (on your W-2) or Sale tax (Need Receipt)
b.Real estate Tax
c.Personal Property taxes (car and boat tax)
d.Other tax (TDI)
3.Interest you pay
a.Home Mortgage inerest (copy of 1098)
4.Gifts to charity
5.Casualty and theft losses
6.Job expenses
7.Other miscellaneous
4) Exemption is something every one has however if you are dependent under the age 18 then they can take your exemption for them self. In the year 2005 the exemption is $3,200.00 that means if you earn less then $3,200.00 then there will be no tax.
5) Taxable income is the result when you take AGI minus Deduction minus Exemption. If your Deduction and Exemption are greater than your AGI then you have no Taxable income.
6) TAX is base on taxable income; you may be using a tax table or a schedule to find that amount,
7) Credit is there to reduce your taxes, Credit is better than Deduction and Exemption because it reduce tax
8) Payment is any money pay into the federal income tax accounts are it withholding or estimated tax.
Please also note that some credit is treated like payment like (EIC) because they are payment from the government.
9) Tax due/Refund is result from the calculation. If the tax is greater then credit and payment then it is a tax due. If the tax is less then credit and payment then it is a Refund or a –0- balance.
Federal 1040EZ 2005
1)Single
2)$65,000.00
3)-$10,000.00
4)-$3,200..00
5)$51,800.00
6)$9,601.00
7)? credit
8)? payment
9)? refund or tax due
How much tax withheld on your federal will tell you how much tax due or refund. Your problem may be on (line 8) payment which is how much tax is withheld. You need to withhold at lease 9,700.00 for your federal income tax in 2006 to get any money back assuming you do not have itemized deduciton or credit.
You can adjust your withholding on your W-4 with your boss by increase or decrease line 5 of your W-4.
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