Why do i keep owing taxes?

Forum|Forum|5 years ago
January 22, 2021
5 replies
60 views

My wife and I keep owing a ridiculous amount in taxes. Last year it was $1500 this year its $2500. We each have 1 job and make $65k each. Married filing jointly. No dependents, children, other forms of income, ect. Super basic. Standard deduction. We both filled out a new W4 last year and checked box C stating we both work and make similar pay. How in the world are we owing $2500 in underpaid taxes? I thought the new w4 was supposed to more accurately account for withholdings?

Not A Product Question

Best answer by bluedeb

Are both of you claiming allowances on your W4? If you are, you might want to put 0 allowances on the person who is making the less income. That would have more taxes out of your weekly paycheck, that should help you not owe at tax time.

https://www.nerdwallet.com/article/taxes/how-to-fill-out-form-w4-guide

bluedeb

Answer

Alumni - Champ

https://www.nerdwallet.com/article/taxes/how-to-fill-out-form-w4-guide

vdubbin21Author

Level 2

We are both claiming zero and make almost identical income. Within a couple hundred bucks.

bluedeb

Alumni - Champ

Then you might want to have more taxes taken out of one of your checks. You can also have one of you claim single on your W4, that would have more taxes taken out & then hopefully, you would not owe. What filing status you claim on your W4 has nothing to do with what filing status you claim on your tax return. The W4 is only designed to decide how much taxes you want out of your paychecks.