I HATE TAXES!

[GQjoey]

I know everyone hates taxes, and it's just a pain in the ass every year, but mine are a little confusing this year, and I'm looking for a little help.

I claim 1. In 2008 I grossed 14,031..Federal withheld..846. I would of gotten most of that back, but I had a side job as a independent contractor, so had to pay taxes on that. So I only ended up getting back roughly $200.

2009 - grossed 14,075..Federal withheld..398??? WTF? My social/state/medicare all that is roughly the same as 2008. I called a lady in our AP dept today, and she tried to explain that the taxes "fluctuated" in 2009. I talked to a buddy of mine, that grossed about the same as I, claimes 1 also..and his Federal withheld was around $900. We work for the same company. I live in California, if it makes any difference.

I'm either completely ignorant, or there was a mistake made. If anyone can make sense of this, please let me know..

[FullofPop]

If I remember right, some people benefited from one of the new tax credits (Making Work Pay?) in the form of having fewer taxes withheld from their paycheck over the course of the year. For me that tax credit was around $400...so might that explain some of the missing tax?

[Miniar]

I love taxes, They pay for roads, schools, hospitals, etc...

What I don't like is the red tape involved

[spacial]

The red tape is there to mark the boundries between the rich, who cross it and the rest of us who don't.

That's why they're rich!

[Radar]

If you claim 1 (I assume yourself) less taxes are taken out. If you claim 0 dependants you'll get more tax money back. You can file for 0 even if you're married. I always file as 0 and single (even though married) and get more taxes back.

[GQjoey]

If I remember right, some people benefited from one of the new tax credits (Making Work Pay?) in the form of having fewer taxes withheld from their paycheck over the course of the year. For me that tax credit was around $400...so might that explain some of the missing tax?

Possibly. But was it a "luck of the draw" deal or what? I talked to a couple other co-workers today, and they didn't notice much of a change at all with their Federal withheld.

[GQjoey]

Do you no longer have the independent contractor job? That may have something to do with it.

I still do, didn't make much on it in 2009, $800 and under. As opposed to well over $3,000 in 2008. And I haven't filed a 1099 yet, so I doubt that has anything to do with it.

[tekla]

It would be worth it to go to a pro for these answers, and check your W2 and make sure it didn't change - perhaps they meant to change another, in which case, you're are going to owe, though at that amount, it's hard to see how.

[GQjoey]

It would be worth it to go to a pro for these answers, and check your W2 and make sure it didn't change - perhaps they meant to change another, in which case, you're are going to owe, though at that amount, it's hard to see how.

I did a side by side comparison from 07,08, and 09. No changes, at all. That whole "tax credit" could be plausible, but unlikely, considering a few I've talked to I work with, didn't see any changes.

[tekla]

Most tax credits are taken/given when one does the return, not on the withholding.  Like the Earned Income Credit - you get that money back, but you still have to pay it in first.  Just do a quick ballpark return (not for submitting) and see if the outcome (the money you owe/pay) remains the same.  I'm not aware of any large change in the policy last year for those at the lower rates (but those things change so much that you have to have people who know from year to year what they are, and its a full time job to track them - but they also change most at the top, not the bottom.)