Tax advice

[NetSkyBlue]

I filed my 2011 taxes today and for the first time ever, I owed money. The amount I owed to state was about $35 more than my federal refund. (I've always owed state, never yet owed federal).

I anticipate making around $15k more in 2012 due to a raise in Dec 2011 and taking a new part time job in Oct. 2011. My withholding on my W-4s is all "0"s.

How do you suggest I adjust for this? I have no idea how much I will owe, because I've never made so much before.

Edit: and I'm assuming the raise will put me into a higher tax bracket. I'm going from approx 35k to approx 50k.

[jpg7n16]

I'd recommend using the IRS with holdings calculator.

2012 Withholding Calculator

Should tell you how many withholdings to claim to zero our your refund (or close to it)

[Like2Plan]

I filed my 2011 taxes today and for the first time ever, I owed money. The amount I owed to state was about $35 more than my federal refund. (I've always owed state, never yet owed federal).

I anticipate making around $15k more in 2012 due to a raise in Dec 2011 and taking a new part time job in Oct. 2011. My withholding on my W-4s is all "0"s.

How do you suggest I adjust for this? I have no idea how much I will owe, because I've never made so much before.

Edit: and I'm assuming the raise will put me into a higher tax bracket. I'm going from approx 35k to approx 50k.

If you are single zero, you can have additional money taken out each pay date--designate that on line 6 of the w4 (Additional amount, if any, you want withheld from each pycheck)
Like jpg7n16 says, the IRS withholding calculator will be your best bet for calculating your tax liability when you factor in the raise.

I am a little surprised that you owe if your withholding is currently set at zero unless you are married (that always adds a complexity to the withholding) or if you had some additional income for which you didn't have any withholding--but, the withholding calculator takes out a lot of the guess work.

IRS tax withholding calculator..

[kv968]

Using the calculators will give you a pretty precise measure on how you should adjust your holdings.

Although I don't know your complete filing info, but with just keeping with what you have (claiming 0), you should be getting money back from the Fed next year considering you're going into the new tax bracket. Again, use the calculators but I definitely don't think there'd be a need for you to withhold anything extra. If anything you may be able to raise your W-2 claiming status to "1" if you want to.

[BudgetSurgeon]

I filed my 2011 taxes today and for the first time ever, I owed money. The amount I owed to state was about $35 more than my federal refund. (I've always owed state, never yet owed federal).

I anticipate making around $15k more in 2012 due to a raise in Dec 2011 and taking a new part time job in Oct. 2011. My withholding on my W-4s is all "0"s.

How do you suggest I adjust for this? I have no idea how much I will owe, because I've never made so much before.

Edit: and I'm assuming the raise will put me into a higher tax bracket. I'm going from approx 35k to approx 50k.

2 things that you can do here:

1) As earlier poster stated, you can have additional dollar amount deducted, as stipulated on your W-4. This will help you avoid underpayment penalty;

2) Alternatively, particularly if your earnings aren't evenly distributed across paychecks (maybe it's sales income that comes in different parts of the year), you can file quarterly estimated tax payments, over-and-above what's deducted from your paycheck. This will avoid any sort of under-payment tax penalty as well.

[NetSkyBlue]

Thanks. I used the federal calculator to come up with needing to withhold an extra $7 per paycheck and manually figured state to come up with an extra $55 per check. I fall into a lower bracket at both of my jobs and one in particular withholds next to nothing for state. Because of exemptions and things my state taxable income will be considerably more than my federal taxable income this year.

Last year I held 3 part time jobs in addition to my full time job plus a small amount as an independent contractor. Taxes don't like it when you hold multiple jobs.

[kv968]

Last year I held 3 part time jobs in addition to my full time job plus a small amount as an independent contractor. Taxes don't like it when you hold multiple jobs.

Holding mulitiple jobs can be screwy when it comes to overall taxes. Had all that extra income come from just a raise at your one job, you most likely would have made out fine Federal-wise without getting anything more taken out or possibly even being able to up your holdings to "1".

State of course is a different matter.