My wife and I both claim a 1 on our W4s and have them marked as Married. We also own a home and pay a mortgage as well as student loans with student loan interest. We have no investment income and our ONLY source of income is wages from our employment.
In 2016 (our first year filing as married joint), we received a refund with the exact same tax situation as we have now. This year (2017) is our second year fililng as married joint.
I make about $85k/year and she makes about $40k/year.
Anyhow, when filling out our taxes, without any deductions, we end up owing over $5,000 federal and nearly $1,500 state! With deductions, we still owe nearly $1,000 federal and $500 state!
How do we end up owing so much when we only claim 1 on our W4s?
