TAXES - How to get $0 refund

[Christopher2012]

Okay so I got paid today. I filed single with 0 allowances. To my naive-natured surprise, the government DESTROYED my first paycheck.

Now, I don't want them to withhold money from me and then give me a large refund later. I want all of my money now because I have to pay back my student loans which has a 6.8% interest rate.

I guess my best bet is to meet with an accountant or something... But other than that, does anybody have any tips on how to handle this?

 

[Weird Harold]

Okay so I got paid today. I filed single with 0 allowances. To my naive-natured surprise, the government DESTROYED my first paycheck.

First, you haven't "filed" shit. that comes April 15. What you claim on your W-4 controls how much your employer withholds from your check for taxes, but does NOT have any bearing on your actual filing status come April 15.

Second, claiming single/zero deductions is used to maximize withholding. You need to submit a new W-4 to your employer claiming as many deductions as you can get away with -- talk to your employer to see what they will allow you to claim. At a minimum, you can claim single/2 to reduce your withholding to closer to what you'll owe in taxes.

 

[Christopher2012]

First, you haven't "filed" shit.

I guess you missed the "naive" part in my post, asshole. But thanks for your advice anyway...

But for the record, no filing occurred. I'm just a dumbass when it comes to taxes.

 

[TJcurious]

Be careful on how you fill out on your W4. You may end up having to make out quarterly returns, and paying quarterly should the govt "feel" you are keeping too much of your money, and paying it at the end of the year.....they want it every paycheck, not when you want to pay it.

 

[DrHappy]

If you underpay your withholdings too much, you'll have to pay penalties in addition to your taxes in the spring. Weird Harold gave you good advice. Resubmit your W-4 through your employer and increase your allowances by honestly filling out the form.

 

[Killjoy24]

I guess you missed the "naive" part in my post, asshole. But thanks for your advice anyway...

But for the record, no filing occurred. I'm just a dumbass when it comes to taxes.

I don't think he/she was being an asshole by giving you sound and accurate advice!
You can always contact IRS for free tax tables to calculate you aprox. pmt's. too they also have a website for that irs.gov I believe it is. Sounds like your first job - live and learn. It's always good to ask questions and I wish you luck, but he wasn't being an asshole.

 

[ohjanesays]

This board is full of assholes despite being supposedly "helpful". Anyway, if you file single 0, the govt will take a ton out but like you know, you'll get a bigger refund. If you do single 2, most likely you'll end up paying them come tax season. So I would just do middle of the road and do single 1. I've always gotten something back being single 1 and not feel like a whole chunk was taken out of my paycheck. Also, you might be able to deduct some of the interest that you pay on your school loans. I think if you submit the 1098T? Don't quote me on that but I think you can do that. Don't use an accountant, just use turbotax if your taxes aren't that complicated.

 

[MatthewVett]

Also, you might be able to deduct some of the interest that you pay on your school loans. I think if you submit the 1098T? Don't quote me on that but I think you can do that. Don't use an accountant, just use turbotax if your taxes aren't that complicated.

It is the 1098-T, and your loan servicers should provide you with the information required at the end of the year. If not, you can try contacting them for one. I know Nelnet was really helpful for me. But yeah, you can deduct any interest paid on student loans from your taxable income.

 

[Noor]

You can actually put on your W4's the actual amount you want taken out. Even if you asked for no taxes taken out, they still take out social security.

If you pay under 90% of what you paid last year, you will pay penalties, its not a lot.

Did someone already point out that you need to file more allowances to pay less, if you go that route?

 

[hotsauceyman]

I like refunds in the positive range

 

[1dude]

Fill out a tax return from last year with this years income and expenses/deductions. It will tell you what you would owe last year and should be damn close to what you will owe for this year. Divide the tax owed by the number of paychecks and that is the amount to withhold per check and carry that to your w4.

 

[Lord Pmann]

Fill out a tax return from last year with this years income and expenses/deductions. It will tell you what you would owe last year and should be damn close to what you will owe for this year. Divide the tax owed by the number of paychecks and that is the amount to withhold per check and carry that to your w4.

He is going from being a student to a well paid pharmacist. I don't know that this would work in this situation.

 

[Lynn33]

..........................................

 

[Noor]

I really don't understand why people feel the need to pay more tax than they have to by law. Pay the least you can without incurring penalties and then pay the balance on April 15 or file an extension and pay the balance plus a small amount in interest on Oct 15.

The IRS should not be some strange sort of savings account.

 

[mwmnpa]

The IRS should not be some strange sort of savings account.

Agreed. Savings accounts pay interest. I see to it that we owe a bit.

 

[Lord Pmann]

I really don't understand why people feel the need to pay more tax than they have to by law. Pay the least you can without incurring penalties and then pay the balance on April 15 or file an extension and pay the balance plus a small amount in interest on Oct 15.

The IRS should not be some strange sort of savings account.

Most people are shit with money and that's why. If they started getting that extra money in their paycheck and then they'd spend it willy nilly and be in trouble when tax time comes. I'm not saying it's a good reason, but that's THE reason.