taxes

ta78

I'm not positive, but I think DH needs to fix his w-4. I don't know much about taxes and I feel bad for not being more educated on this if we are losing money. Anyways.. our refund was over $8000 this year. 2 kids and $75k gross income. Is this too high?

KatieCutie05

Yes 8k is insanely high, i'd definitely make some adjustments Otherwise you are essentially loaning money to the government at no interest. Increase your number of deductions and you'll end up getting a very hefty "raise" each month. 

vlagrl29

Yes, OMG!  You are loosing money to the govt and you are getting it back at tax time.  You need to adjust your deductions.

smerka

There is no right or wrong answer to this question. It depends on you. We personally were in a similar situation and we reduced our withholding. My husband hadn't changed his from when he was single. For two years we actually got all of our withholding back plus a couple hundred back. This year we had a small tax liability but still got a refund.

hoffse

I think it's way too high - and I kind of think that is the correct answer on this one...

When you get big refunds, you are loaning the gov money all year long interest-free.  That money would be much better served going in your pocket throughout the year.

My goal is to owe about $50 to both feds and state.  It means I haven't loaned the gov a penny, but it's also a small enough payment that it's just not a big deal.

jtmh2012

ta78 said:

I'm not positive, but I think DH needs to fix his w-4. I don't know much about taxes and I feel bad for not being more educated on this if we are losing money. Anyways.. our refund was over $8000 this year. 2 kids and $75k gross income. Is this too high?

I suggest giving this a shot:
http://www.irs.gov/Individuals/IRS-Withholding-Calculator

My preference is for federal/state to owe me, but own me as little as possible.