Question

Anyone else out there dreading to file their taxes because they’ll owe? My husband and I file married joint and its so discouraging trying to get ahead when you have to pay back instead. We live in Cali and I literally can’t understand how we owe when we barely make enough to survive  

Answer 1

It is frustrating when I see people getting back refunds of $11, 000 because of EIC when they did not pay near that in. I have no issue with them getting back what they paid in as a refund but not when it well exceeds their pay in

Comments

@henkel what’s EIC?  

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@loxodromics Earned Income Credit. basically they make poverty wage with several children.  

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Im Canadian so not familiar with this but I struggle with being upset about anything being given to people living in poverty.  

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My issue is that it is supposed to a be a refund of tax dollars you paid in. Not thousands of extra dollars paid in by others. Often those who get the exorbitant “refunds” manipulate they system by claiming single income when there are husband and wife or splitting the children etc. additionally this $$ is usually quickly blown back into the economy where if actually refunded to those who paid it it would be saved or used to pay down debt.  

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@henkel not always true. I'm getting a good amount back this year and I had pay and still paying in taxes last year. Married filing jointly we both work full time, but both took time off work due to surgeries and then a birth.  

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@whaley Martinez I realize it is not always the case. Unfortunately I see a lot of abuse of the system first hand.  

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@henkel yes I have seen it too but there are so many famies trying to get by. I love in California and the eic is their saving grace many times. I work with low income families, when I, myself struggle .  

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@henkel I was so confused last year when I did our taxes, our refund was 25% of what we made that year! The system is definitely screwed up.  

Answer 2

Yes I owe 9k

Answer 3

Me! I already did them and owned about 1000. Girst time I owned them but it is also my first year all by myself, paying everything myself with no help and all the money I saved will have to go into paying them. Back to 0.  

Answer 4

Use the IRS calculator. It’s been updated to reflect the new tax laws, and there’s a slider at the end that lets you input the amount of refund you’d like to receive. I set ours to $0 and happily, we’ll be overwithheld for 2020 so I’m making adjustments now (I prefer to owe nothing and receive nothing, so it’s a crap shot).  

Comments

@glans do you have a link for this calculator?  

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Yes! This saved us this year. We owed last year, used this to adjust our witholdings and got a refund this year. We're also in California

Answer 5

You’re not alone. Single no dependents here. I never get anything back and typically owe state.  

Answer 6

I was and thankfully I owe a small amount this year, finally!  

Answer 7

We owe too with the tax law changes. Its depressing.  

Answer 8

You should re-evaluate what your withholding are so you won’t have to owe next year. If you haven’t changed what you claim as your children have gotten older you won’t have enough taxes taken out of your pay throughout the year. I claim single and zero even though I have two young kids to make sure enough is taken out and I won’t have to owe.  

Answer 9

We owe on federal but not state. So paying it in April before deadline.  

Answer 10

Yep I thought we would get back but owe about $3100 but I don't need to pay til April so I am glad we filed. This way I have some time to figure things out.  

Answer 11

We filed our Federal, earned. our state we owe $1000+ because my husbands job “accidentally” changed his state of residency to NJ instead of PA. we failed to see it on the darn paystubs (you kinda trust they know how to do their job). so now we did our PA state but NJ state looks soooooo confusing. it should ALMOST wash each other out but it won’t.  

Answer 12

We won’t owe but we also haven’t filed because in my husbands words ‘we don’t need it to live sooooo what’s the rush? ’ And it actually makes it easier to just put it in savings and forget about it after all the buzz and ‘sales’ have ended lol

Answer 13

That is my small business owner life

Answer 14

We live in Cali, and don’t owe. We got a nice amount back actually. No credits either.  

Answer 15

I’m right there with you! At my job, I’m technically a contracted worker, I work a couple of days a week and trade off some childcare with a coworker so that I can be home with my kids. I make right around a $1000 a month, but apparently it’s enough to push us over the next pay bracket. I wasn’t setting aside taxes throughout the year because things were already so tight. My husband did our taxes in January and found out that because of my job, we OWE, again! (Still paying off last year’s ) I’m 8 months pregnant and just lost it when I heard. but that’s what led me to this group. I’m still overwhelmed, and like you, I don’t understand how that works when we literally live paycheck to paycheck, but it seems a little more doable now. Good luck! It will be okay ❤️

Comments

@mothy yes let’s push through together  

Answer 16

Yes. I had it set in my mind that I was going to pay off my highest credit card balance only to find out I owe. Most discouraging thing ever.  

Comments

I live in Cali too and surprise! I owe state taxes.  

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@revers456 hang in there we got this!  

Answer 17

I’ll only owe $175 luckily. I started a contract job so that’s why. Usually I get back $75.  

Answer 18

We owe this year as well! Both my husband and I increased our 401K by 1% then we will probably increase our HSAs by maybe $10-$15. My husband has an LLC so gets double taxed on it. We are going to see what we can do from a retirement standpoint to help offset some of those as well. We both claim 0 and have 2 kids too! We are hoping this may help us in 2020.  

Answer 19

We owe every year I hate filing  

Answer 20

That's me! I have all of the documents, just not the courage.  

Answer 21

I still recommend prepping them so you know the amount you will owe then you can plan. You can wait to file til the last day, but at least you will be able to budget

Answer 22

Meeee :(

Answer 23

I’m self employed so I always owe but I pay quarterly taxes every year and maximize all the deductions and it helps a ton! I have a separate bank account just to save for taxes - month goes into there every month (about 30% of my income just to play it safe. ) doing this means I’m never stressed during tax time!  

Answer 24

Make sure you both have the right withholding. That may be why you owe. Last year I had the wrong one that I had for more than a year and it affected me with the changes in tax rules and I owed 5 times what I normally pay. My accountant told me how to fix it and I had it fixed. This year I got back more than I thought I would so I was happy.  

Comments

@erving Care share what changes you made?  

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@glans Devitt Just had the wrong withholding number so changed that and now I am fine

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@erving ok thanks

Answer 25

If i knew i was going to owe taxes, i'd file as soon as i could, to give myself a goal and as much time as possible to reach said goal.  

Answer 26

I have a 1099, so we always owe my taxes. I save them each paycheck though so it’s not a surprise. It still stinks.  

Answer 27

We also also owe taxes and a lot- I push it off it the last possible day. I am 1099 too.  

Answer 28

We usually owe too. It sucks but the good thing is that means you didn't loan the government thousands of dollars interest free.  

Answer 29

I live in California and I have always gotten a return - never owned federal or state. Even when married. I have always claimed single and 0. Now I have my son but, the new updated W4 is allegedly more accurate so update it for next year and it should help with having to owe.  

Answer 30

I hate to do ours cause we have owed for several years! This year it’s only $544! Woohoo  

Answer 31

We have a W2 and business and no dependents. We owe 498. 00.  

Answer 32

Omg, I thought we'd owe about $1000. we are actually getting a refund of almost $4000! Living in CA, combined married income of about 110k. 1 is full W2, 1 is 6mo w2 6 mo self employed. You never know till you get there!  

Comments

@seavir the new standard deduction is pretty awesome! I'm in northern California and 110k is needed in my town to survive

Answer 33

Since we have been empty nesters, we always have to pay in.  

Answer 34

File now so you have until April 15 to pay. I waited one year and it really sucked to have to pay it all at once on the day I filed. That was more stressful than owing.  

Answer 35

We have never owed before, but the withholding changes completely screwed us and we owe almost $1000  

Answer 36

Since I filed taxes I never had to pay back, I would always get back something. Not sure on how you would owe

Answer 37

I am in the same boat as you. I love/hate California  

Answer 38

I owe almost every time I file single  This is my first year filing as married with a kid so I hope I get something with our country’s child benefits.  

Answer 39

I feel your pain! I hate it

Answer 40

Preach to the choir girl!  

Answer 41

I have us claiming 0 married and 0 married at a single withholding and it’s just barely enough to not owe but still allow us an income. We live in Oregon and get killed in state taxes. Thankfully owning a house has finally helped this year  a baby on next years taxes  

Answer 42

We got really screwed last year. 8k we had to pay back. I am very scared to see this years. A rough estimate we get back 1k. I made so many changes so we would not ever have to pay back that amount again. EVER