Ask Experts Questions for FREE Help !
Ask
    J1Scholar's Avatar
    J1Scholar Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Apr 4, 2017, 11:56 AM
    Owe $400 to federal and state governments
    I just did my taxes for this year and it appears that instead of getting a refund, I owe the federal and state governments about $200 each. Is this normal? I thought employers set the withholding so that you end up overpaying and you get a refund at the end of the year. I'm trying to talk to the payroll department but they are quite unhelpful. :-/ What I'm worried about is that I might be doing something wrong in my tax return. I used two popular tax calculation software and they both give about the same numbers due.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #2

    Apr 4, 2017, 01:03 PM
    'I thought employers set the withholding so that you end up overpaying and you get a refund at the end of the year.' Nope. That's your job.
    What isn't normal is owing the state as much as the feds.
    We can't know if you are using the software correctly or not. Did it ask for your J-1 status? Or if your employer put numbers in the wrong boxes. Or if you are entering numbers incorrectly.
    Take it all to a tax place for a quick look.

    (PS - I never in my wages life set mine up to overpay! Why should the IRS have my money interest free?
    Set it up to pay as little as possible.)
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Apr 4, 2017, 01:56 PM
    As Joy said, it is up to you, not your employer. When you were hired you were given a W4 form. These forms are used to set your exemptions to determine your withholding. Set them too high and you are under withheld and owe money. Set them too low and you are over withheld so you get a refund. But it also means you are loaning Uncel Same money, interest free.
    J1Scholar's Avatar
    J1Scholar Posts: 9, Reputation: 1
    New Member
    		  
    #4

    Apr 4, 2017, 02:01 PM
    Thank you for your reply, none of the softwares I used ask for my J1 status.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #5

    Apr 4, 2017, 02:06 PM
    You are considered a Nonresident Alien for the first 2 (non-student) years or 5 (student) years, and file a 1040NR.

    Turbo Tax doesn't support that as far as I know. Maybe none of them.

    The good news is that maybe you don't owe anything.
    J1Scholar's Avatar
    J1Scholar Posts: 9, Reputation: 1
    New Member
    		  
    #6

    Apr 4, 2017, 02:10 PM
    Right, that's why I could not use any software for the last two years. This year I am a resident alien.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #7

    Apr 4, 2017, 02:21 PM
    You didn't tell us that.
    Oh, on another question?
    It helps us if you keep them together under one thread.
    J1Scholar's Avatar
    J1Scholar Posts: 9, Reputation: 1
    New Member
    		  
    #8

    Apr 4, 2017, 02:34 PM
    Sorry, I forgot to mention that I am a resident alien now.

    Does this mean that the tax software is likely to be correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #9

    Apr 4, 2017, 02:39 PM
    Yes, the tax software IS likely correct.

    And paying is NOT a bad thing; REFUNDS are, because you are getting back your own money that you lent the government for the past year interest-free.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
    		  
    #10

    Apr 4, 2017, 05:20 PM
    I'd like to owe a small amount every year. You have used their money all year!
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #11

    Apr 4, 2017, 07:04 PM
    The place you work does not "set" how much is withheld. You choose how much by the number of withholdings and if you wish any additional withheld. The place you work just does what you instruct them to do.

    Remember any money back (refund) is just your money they kept at no interest during the year.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

A state supreme court can hear cases involving both state and federal contitutional I [ 3 Answers ]

A state supreme court can hear cases involving both state and federal constitutional Issues

My school hasn't withheld federal taxes for me and I owe money to IRS. [ 1 Answers ]

I've been in the US from 2006 and my treaty status lasted till 2010. I have received a 1042-S form from my school stating that there were 0.00 federal taxes withheld for 2010. In 2009 I had almost $2300 withheld. I'm an international student on the full scholarship. For 2010 I owe almost $2000 to...

Owe state taxes in another state don't work in that state, can they garnish wages. [ 6 Answers ]

I owe back taxes in state of Maryland but work in virginia. Can Maryland garnish wages in viriginia.

Describe the powers that the federland state governments gained under the constitution [ 1 Answers ]

This is an extra-credit question, it's from a History Worksheet, that's about William Pierce, James Madison( I think) ish.. something like that. Please help?? GOVERNMENT+HISTORY}

Different state employees filing married jointly for federal but separate state tax? [ 1 Answers ]

We got married in Dec 06 month. We want to file federal tax 2007 married jointly. She lives in Alabama and I live in Wisconsin. I am a resident alien and she is not. For federal, I can apply 1040 R, jointly married. My question is whether we have to file state tax married jointly? If I file...

View more questions Search