Is it possible to owe money in taxes with 0 exemptions?

[Anonymous]

Anonymous wrote:Op here, she is single. No kids. No property. I understand how 0 exemptions and married can lead to owing but not 0 exemptions and single. I’m clearly missing something here.

You are - the difference between tax owed and tax withheld. Not the same thing. It's be great if there were a relationship between them, but if there's is, it's just luck.

[Anonymous]

Anonymous wrote:In the latest changes to the tax code, if you are a salaried worker with no mortgage and no kids, there’s almost no way you’re going to be able to itemize and will wind up with the standard deduction. So depending on how her withholding was set, yes, she can get a refund.

The vast vast majority of my deductions are neither of these categories. They are business related or charitable. Mortgage and children account for maybe $40k in deductions at most.

[Anonymous]

Anonymous wrote:I was chatting with a friend of a friend who had recently done her taxes. She mentioned being shocked at how much she paid in taxes. She ran her stats by me and her withholdings sounded normal. Then she commented that she was surprised she was getting a refund at all since she is a “high earner”. She made roughly $135k. Maybe I’m jaded but I don’t consider that especially high, at least not for this area. The conversation went on and she mentioned how she claimed 0 exemptions and I thought well if they’re taking the full amount of taxes out wouldn’t you expect a refund of some sort no matter how little? Another person we were having lunch with pretty much said this and she countered by saying, again, that “high earners” have to have an additional amount withheld per month or pay period to ensure that they do not owe. I make a little more than this woman makes and I don’t have to do that but I have children and a mortgage, which she does not so our situations are different and I definitely claim exemptions.

I didn’t want to argue with her so I let her cook but … Is this right? At $135k no exemptions is a tax refund unlikely. No properties or multiple streams of income. This just sounded odd to me and I’m struggling to understand her point. Also the “high earners” bit kept throwing me for a loop.

It is absolutely flabbergasting to me that you have not only given it this much thought and posted here, but that you want continue arguing the point.

What was your major childhood malfunction that makes you think in this dysfunctional and incorrect manner?

[Anonymous]

Anonymous wrote:

Anonymous wrote:"Refund" (or lack thereof) is only barely related to what taxes they actually pay.

The key info is what they had withheld. Withholding > final tax bill? You get a refund. Withholding < final tax bill? You owe.

OP here. I understand this but with 0 exemptions how is her final tax bill higher than her withholding when she is giving max withholding?

0 exemptions doesn’t mean max tax withholding. She needs to calculate her estimated taxes and set extra withholding if needed.

[Anonymous]

Just echoing that you can put 0 and still owe. I calculated how much more of my paycheck that needed to be withheld so we didn't get hit with 10k or something crazy. And yes to the last administration screwing with the tax code

[Anonymous]

Anonymous wrote:Just echoing that you can put 0 and still owe. I calculated how much more of my paycheck that needed to be withheld so we didn't get hit with 10k or something crazy. And yes to the last administration screwing with the tax code

Congress writes the tax laws.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just echoing that you can put 0 and still owe. I calculated how much more of my paycheck that needed to be withheld so we didn't get hit with 10k or something crazy. And yes to the last administration screwing with the tax code

Congress writes the tax laws.

Sorry the idiot Republicans screwed us. There.

[Anonymous]

Why in the world do you care so much about your friend’s taxes!

[Anonymous]

Yes, we had to do additional withholding as dual income with no kids. IRS withholding is designed for one income or people itemizing $40k like before SALT cap.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just echoing that you can put 0 and still owe. I calculated how much more of my paycheck that needed to be withheld so we didn't get hit with 10k or something crazy. And yes to the last administration screwing with the tax code

Congress writes the tax laws.

Sorry the idiot Republicans screwed us. There.

Yep, the Republicans screwed the rich states by capping the SALT deductions.

[Anonymous]

Anonymous wrote:Why in the world do you care so much about your friend’s taxes!

Envy. Most things stem from envy.

[Anonymous]

Yes; my wife and I take 0 deductions, and I take out a bit more from my paycheck and we have to pay quite a bit more at tax time. Both of us make over 200k per year. I think if one salary was significantly higher with the same total it wouldn’t be this bad.

[Anonymous]

Anonymous wrote:Op here, she is single. No kids. No property. I understand how 0 exemptions and married can lead to owing but not 0 exemptions and single. I’m clearly missing something here.

It is because of Trump's tax genius, LOL

Yes, she will owe, so will many others who never did before. This year will be a shit show. Next year too.

Yes, normally file zero then no taxes owed and even a refund would be correct.

Welcome to Trump/Republican math.

[Anonymous]

Anonymous wrote:Yes; my wife and I take 0 deductions, and I take out a bit more from my paycheck and we have to pay quite a bit more at tax time. Both of us make over 200k per year. I think if one salary was significantly higher with the same total it wouldn’t be this bad.

Why would it make a difference if one salary is higher?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just echoing that you can put 0 and still owe. I calculated how much more of my paycheck that needed to be withheld so we didn't get hit with 10k or something crazy. And yes to the last administration screwing with the tax code

Congress writes the tax laws.

Sorry the idiot Republicans screwed us. There.

+1

And when they win in 2024 it's over never a middle class life again. MAGA complaints now. Can not wait til 2024 and forever when they move from middle class to poverty level.