jimbohoward69
Recycles dryer sheets
- Joined
- Feb 25, 2007
- Messages
- 70
Hey everyone! I have a tax question...I know that not everyone on here is a tax professional but thought someone might have had the same scenario as me.
After doing my taxes, it looks like I'm going to have to pay for the first time in 20+ years. Normally I would get back around $1000 or so but this year I'll have to pay $845. I spent 22 years in the Air Force so my taxable income was always "low" by comparison to my overall income (tax free housing/food allowances) and I always received a refund.
Anyway, I started a new federal job in January 2013 and now have two sources of income. For both my pension and salary, I claimed "1". The pension is only taxed federally while my salary is taxed both at the federal and state level (don't know if that makes a difference).
I used the IRS.gov withholding calculator for each source of income and BOTH of them, the IRS says, would result in an overpayment of $500+. If this is the case, then why do I need to pay? I don't understand! I also maxed out my TSP ($17,500), which kept my total taxable income below the 15% threshold.
So I guess now I should start thinking about knocking one of those exemptions down to "0"? It doesn't make sense to me but I'd rather break even or have to pay a little bit instead of $800+ every year.
Any thoughts?
After doing my taxes, it looks like I'm going to have to pay for the first time in 20+ years. Normally I would get back around $1000 or so but this year I'll have to pay $845. I spent 22 years in the Air Force so my taxable income was always "low" by comparison to my overall income (tax free housing/food allowances) and I always received a refund.
Anyway, I started a new federal job in January 2013 and now have two sources of income. For both my pension and salary, I claimed "1". The pension is only taxed federally while my salary is taxed both at the federal and state level (don't know if that makes a difference).
I used the IRS.gov withholding calculator for each source of income and BOTH of them, the IRS says, would result in an overpayment of $500+. If this is the case, then why do I need to pay? I don't understand! I also maxed out my TSP ($17,500), which kept my total taxable income below the 15% threshold.
So I guess now I should start thinking about knocking one of those exemptions down to "0"? It doesn't make sense to me but I'd rather break even or have to pay a little bit instead of $800+ every year.
Any thoughts?