Need tax help, please

NewYorkerinAZ

So, I have to fill out this new Arizona State tax withholding form and I have to pick a % that I want taken out of my paycheck.

1.8%
2.7%
3.6%
4.2%
5.1%

I know that if I have less taken out each paycheck then I will get less back at taxes but have more at the time of each check. That's fine with me because it actually turns out that I would pay less to the state.

However, I don't want to end up paying ANYTHING to them. I'd be happy with a little return but also breaking even would be ok too.

I just have NO clue which one to choose. I know it probably depends on my income (which, I will not post on here) but if anyone can help or just help direct me in the right direction, I would GREATLY appreciate it!!

jware1985

ok so the choices you put are different then the ones i had but, my co-worker works at h&r block at tax time and said if you file jointly(married) if you did i think it was 26.7% that you would get a return... I am also going to say Tay & Jaye would have a better answer on this one I tired... lol

jayefay

Without knowing your salary, DHs salary and other important details, I can't tell you which to choose.

 What you need to do is calculate the total amount of state taxes you paid last year (through withholding and any paid out or less any refund) and see what percentage that was of yours and DHs gross income. 

I will tell you that I chose the second to lowest option just to be safe- and DH and I make peanuts.

cnj050607

We do 33.1% this year. I am not working and it is only Carl but he makes more here then we made in Boston so we went a bit higher then what we should have done there.

When we filed our taxes for last year, we only got back like $54 bucks from the state of AZ and that was with choosing 24.5% so we wanted to go higher. I did not want to risk having to pay in since we are making more this year due to his bonus and such...

Tayrusso

Welllllllllp I'm not an accountant, but I asked the accountants, and they say for a salary similar to my own, choose the lowest percentage. Its all about your tax bracket...do you know which bracket you're in?

Text meh.  

 

bhead81

Looks like AZ changed forms, I have to do a new one before the end of June as well. AZ taxes used to be based on the federal taxes withheld, now they are on your earned income.  I have some homework to do to figure out where we need to be...yuck I hate taxes!!!!

bhead81

My employer gave us the following table from ADP:

 

Current withholding                    Prior to July 1st                 New Tax Rate
99 equals withholding of                  0.0%                                 0.0%
10 equals withholding of                  10.7%                               1.3%
19 equals withholding of                  20.3%                               1.8%
23 equals withholding of                  24.5%                               2.7%
25 equals withholding of                  26.7%                               3.6 %
31 equals withholding of                  33.1%                               4.2%
37 equals withholding of                  39.5%                               5.1%

 

Hope this helps.

imshell

Ok so ya know I'm married to a CPA right?  Well he is going on and on about it and I will attempt to translate

He says:

If you really DONT want to owe, go higher.  a good indicator really is what your amount was  in prior years aka it depends on what you got back in the past?  if you got big refunds in the past then you should go for a lower percent.  Or if your refund was lower before then sticking in the mid to higher is good.  some mumbo jumbo about a schedule A--what he's trying to say though is since you're buying a house you will have a nice big fat write-off.  Also he says you can always change your percent later in the year.  

He's saying more but I can't type that fast and I can type like crazy fast.  Anywho, if you want me to ask him more specifics I will  

CandiceNT

imshell:

Ok so ya know I'm married to a CPA right?  Well he is going on and on about it and I will attempt to translate

He says:

If you really DONT want to owe, go higher.  a good indicator really is what your amount was  in prior years aka it depends on what you got back in the past?  if you got big refunds in the past then you should go for a lower percent.  Or if your refund was lower before then sticking in the mid to higher is good.  some mumbo jumbo about a schedule A--what he's trying to say though is since you're buying a house you will have a nice big fat write-off.  Also he says you can always change your percent later in the year.  

He's saying more but I can't type that fast and I can type like crazy fast.  Anywho, if you want me to ask him more specifics I will  

This just made me crack up! DH is a CPA too, and he does the SAME thing when it comes to Tax talk...

NewYorkerinAZ

imshell:

Ok so ya know I'm married to a CPA right?  Well he is going on and on about it and I will attempt to translate

He says:

If you really DONT want to owe, go higher.  a good indicator really is what your amount was  in prior years aka it depends on what you got back in the past?  if you got big refunds in the past then you should go for a lower percent.  Or if your refund was lower before then sticking in the mid to higher is good.  some mumbo jumbo about a schedule A--what he's trying to say though is since you're buying a house you will have a nice big fat write-off.  Also he says you can always change your percent later in the year.  

He's saying more but I can't type that fast and I can type like crazy fast.  Anywho, if you want me to ask him more specifics I will  

HAHA This made me laugh too! The thing is, is that last year we were only here for 6 months so we ended up owing and I don't remember what we had our % at. Bad, I know. I think I might do the middle or next one up. I really hope we get this damn house so we'll have a nice write-off! LOL