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How much will I owe?

Sent to Tax Experts October 24 2006 at 9:19 AM
   

Last year I made $55,000 and I got back $2,200 from the state and federal government. This year I made $74,000. I do expect to owe money this year, but I am hearing I could owe $5K or more. I currently claim "0". Roughly, how much will I owe?

 

Optional Information:
San Jose, California

Customer (name blocked for privacy)
Status:  Closed   Value: $15
Answer
October 24 2006 at 9:26 AM (7 minutes and 18 seconds later)
         
REPLIEDCheck Mark

Assuming you file as a single person, no dependents and using the standard deduction, your Federal tax liability will likely increase by about $4,500 this year as compared to last year. However, your withholding should also have increased as well.

For California tax purposes your tax liability will also increase by about $1,800 but so will have your withholding.

If you can tell me how much income tax (Fed and CA) has been withheld to date as well as how much will be withheld through the end of the year, I will be able to tell you whether you will likely receive a refund or owe. Also, please tell me if any of my assumptions are wrong.

Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

 

Christopher Phelps -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 2668 Tax Accepts
CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
Reply
October 24 2006 at 9:40 AM (13 minutes and 27 seconds later)
         
Reply to Christopher Phelps's Post: My federal withholdings to-date are: $10,936 and my state (CA) withholding is $3,310.93
Customer (name blocked for privacy)
Answer
October 24 2006 at 12:09 PM (2 hours and 29 minutes later)
         
ACCEPTEDCheck Mark

Assuming your withholding represents 9.5 months, I am estimating your total Federal withholding for the year at $13,800 and CA withholding at $4,200.

This would mean you are expected to get a Federal refund of about $850. For CA I would however, expect you will owe about $275.

These amounts are estimates and may vary depending on the facts about your individual situation. If you would like a more detailed and accurate estimate I recommend you engage CPA to do some year-end tax planning.

Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

Christopher Phelps -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 2668 Tax Accepts
CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
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