Vent: Taxes

formerlyGDaisy09 · February 2016

kmurphy2131 said:

formerlyGDaisy09 said:

It depends on how much you make combined and what your other deductions are. If you and your H both claim 2, then you are essentially claiming 6 personal exemptions between the two of you (one for yourself, plus 2 more, and then double that since each of you are doing it). Totally speculating here, but the reason this probably works for you guys is that your other deductions offset those extra exemptions you are claiming. Personal exemptions are only a few thousand each, and they are taken as a deduction rather than a tax credit.

This year H is withholding as a single, and I am withholding married 0. We're probably going to owe a few hundred. There are a whole host of things we can no longer deduct because of our AGI range. For instance, we no longer get the student loan interest deduction, even though we pay a LOT of money toward that each year. I've actually toyed with the idea of doing a cash-out re-fi to pay off our federal loans so that we can get that deduction back, and then use the tax savings to pay them off faster. We probably won't ever do that, but it's pretty tempting.

H and I can itemize, but our state income tax is fairly low, and we pay minimal property taxes. People who live in states with higher state income or property taxes will get more of their federal taxes back. We actually wouldn't be able to itemize at all if it wasn't for the mortgage interest deduction.

So there are a whole host of things that can change the numbers. Honestly, this is why I hate the personal exemption thing on W4s. You could have two families who are similarly situated in terms of income and the number of people they can actually claim, but they have to withhold very differently based on all their other deductions.

I have a question related to this. We live in an income tax free state (our property taxes are through the roof), however H interviewed for a job in another state that has income tax, so if her were to get the job he would have state income tax deducted. do we get to claim that tax on our federal return along with our property taxes? otherwise I think we need to figure those taxes out of whatever salary he's offered there to figure out if it's worth the switch...but if we get to claim them we'd probably have him add another exemption to try to even it out.

I'm not sure which state he is potentially going to work in, but I know you live in NH. So if the state is Maine, I do not know their taxes in and out by any means but I do think that they tax your spouses income as well. Someone told me that they then give some deductions that might even it out? But you can get hit. I don't fully get how it works, I have never lived/worked in Maine but I worked right on the border for 2.5 years and treated a lot of patients who did. I heard some weird stories.

It's actually VT. but I think they may do some convoluded version of the same thing. I worked one year where I had a part time job in vermont and my full time job and somehow a percentage of all my income was up for grabs for vt state tax...or maybe that was the year I had worked in Maine, VT and NH? I remember being confused and then pissed.

AprilZ81 · February 2016

formerlyGDaisy09 said:

kmurphy2131 said:

formerlyGDaisy09 said:

It depends on how much you make combined and what your other deductions are. If you and your H both claim 2, then you are essentially claiming 6 personal exemptions between the two of you (one for yourself, plus 2 more, and then double that since each of you are doing it). Totally speculating here, but the reason this probably works for you guys is that your other deductions offset those extra exemptions you are claiming. Personal exemptions are only a few thousand each, and they are taken as a deduction rather than a tax credit.

This year H is withholding as a single, and I am withholding married 0. We're probably going to owe a few hundred. There are a whole host of things we can no longer deduct because of our AGI range. For instance, we no longer get the student loan interest deduction, even though we pay a LOT of money toward that each year. I've actually toyed with the idea of doing a cash-out re-fi to pay off our federal loans so that we can get that deduction back, and then use the tax savings to pay them off faster. We probably won't ever do that, but it's pretty tempting.

H and I can itemize, but our state income tax is fairly low, and we pay minimal property taxes. People who live in states with higher state income or property taxes will get more of their federal taxes back. We actually wouldn't be able to itemize at all if it wasn't for the mortgage interest deduction.

So there are a whole host of things that can change the numbers. Honestly, this is why I hate the personal exemption thing on W4s. You could have two families who are similarly situated in terms of income and the number of people they can actually claim, but they have to withhold very differently based on all their other deductions.

I have a question related to this. We live in an income tax free state (our property taxes are through the roof), however H interviewed for a job in another state that has income tax, so if her were to get the job he would have state income tax deducted. do we get to claim that tax on our federal return along with our property taxes? otherwise I think we need to figure those taxes out of whatever salary he's offered there to figure out if it's worth the switch...but if we get to claim them we'd probably have him add another exemption to try to even it out.

I'm not sure which state he is potentially going to work in, but I know you live in NH. So if the state is Maine, I do not know their taxes in and out by any means but I do think that they tax your spouses income as well. Someone told me that they then give some deductions that might even it out? But you can get hit. I don't fully get how it works, I have never lived/worked in Maine but I worked right on the border for 2.5 years and treated a lot of patients who did. I heard some weird stories.

It's actually VT. but I think they may do some convoluded version of the same thing. I worked one year where I had a part time job in vermont and my full time job and somehow a percentage of all my income was up for grabs for vt state tax...or maybe that was the year I had worked in Maine, VT and NH? I remember being confused and then pissed.

Wait so Vermont can tax ALL of your income even if you don't live there and only part of your money is earned there? So if you live in NH, your primary job is in NH an a part time job in NH they tax it all? That is all kinds of messed up.

jtmh2012 · February 2016

emily1004 said:

Forgive me, but I'm at a loss, as to how this happens? How do you claim zero, and still owe? H and I both claim 2 and we end up usually breaking even. He gets paid weekly and I get paid every other week. My check is always the same, his is different every week.

In our case, my wife's salary and mine are very lopsided and I'm high income. In addition, we have a few taxable investment accounts that have returned very generous capital gains which have no state/federal taxes taken out of them. That's on top of all of our savings accounts and the CDs that also generate interest (we've had some CDs at 3% and 5%).

We also have a relatively low interest rate on the house and are barely above the point where our itemized deductions hit the standard deduction for married filing jointly.

formerlyGDaisy09 · February 2016

AprilZ81 said:

formerlyGDaisy09 said:

kmurphy2131 said:

formerlyGDaisy09 said:

It depends on how much you make combined and what your other deductions are. If you and your H both claim 2, then you are essentially claiming 6 personal exemptions between the two of you (one for yourself, plus 2 more, and then double that since each of you are doing it). Totally speculating here, but the reason this probably works for you guys is that your other deductions offset those extra exemptions you are claiming. Personal exemptions are only a few thousand each, and they are taken as a deduction rather than a tax credit.

This year H is withholding as a single, and I am withholding married 0. We're probably going to owe a few hundred. There are a whole host of things we can no longer deduct because of our AGI range. For instance, we no longer get the student loan interest deduction, even though we pay a LOT of money toward that each year. I've actually toyed with the idea of doing a cash-out re-fi to pay off our federal loans so that we can get that deduction back, and then use the tax savings to pay them off faster. We probably won't ever do that, but it's pretty tempting.

H and I can itemize, but our state income tax is fairly low, and we pay minimal property taxes. People who live in states with higher state income or property taxes will get more of their federal taxes back. We actually wouldn't be able to itemize at all if it wasn't for the mortgage interest deduction.

So there are a whole host of things that can change the numbers. Honestly, this is why I hate the personal exemption thing on W4s. You could have two families who are similarly situated in terms of income and the number of people they can actually claim, but they have to withhold very differently based on all their other deductions.

I have a question related to this. We live in an income tax free state (our property taxes are through the roof), however H interviewed for a job in another state that has income tax, so if her were to get the job he would have state income tax deducted. do we get to claim that tax on our federal return along with our property taxes? otherwise I think we need to figure those taxes out of whatever salary he's offered there to figure out if it's worth the switch...but if we get to claim them we'd probably have him add another exemption to try to even it out.

I'm not sure which state he is potentially going to work in, but I know you live in NH. So if the state is Maine, I do not know their taxes in and out by any means but I do think that they tax your spouses income as well. Someone told me that they then give some deductions that might even it out? But you can get hit. I don't fully get how it works, I have never lived/worked in Maine but I worked right on the border for 2.5 years and treated a lot of patients who did. I heard some weird stories.

It's actually VT. but I think they may do some convoluded version of the same thing. I worked one year where I had a part time job in vermont and my full time job and somehow a percentage of all my income was up for grabs for vt state tax...or maybe that was the year I had worked in Maine, VT and NH? I remember being confused and then pissed.

Wait so Vermont can tax ALL of your income even if you don't live there and only part of your money is earned there? So if you live in NH, your primary job is in NH an a part time job in NH they tax it all? That is all kinds of messed up.

I remember it being some really messed up calculation that was maybe based on percentage of income earned in VT and if you were earning less income in VT than out of state a certain percentage of the out of state income was taxed? like somewhere on the VT state form for out of state earners there was a line for your federal taxable income...this was 6 years ago, but I remeber owing VT like $100 in addition to what they'd already deducted. this was one of the things that drove me to hire a professional to do my taxes, she came-up with the same thing I did.

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