Federal Income Taxes versus your state taxes

[BillyVance 35]

I realize not all states require a State Income Tax form, but in my experience living in Alabama, which does, If I owed on my federal tax return, I usually owed about 10-20% of that amount on my state tax return. Ditto if I were getting a federal tax refund. I would get a likewise smaller amount back from the state.

However, the last couple of years (quite possibly due to President Bush's federal tax changes) I've been getting something like $1500 back from Uncle Sam, but having to pay the state of Alabama about 75% of that!

I've made the adjustments to my state W-2 form so hopefully this year's taxes will be evened out somewhat.

Anybody else get a refund from one, but owe on another??

"Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban

[gemini 0]

Billy, we don't have a state income tax in TX "yet" so I can't say what the state legislatiors have done in TX or any other state. But you are correct for federal tax purposes. All the tax returns I have prepared for the last two years have shown a remarkable increase in refund amounts without any significant changes in the taxpayer gross income.

Good idea to adjust your withholding because Uncle Sam doesn't pay interest to you for loaning him the money and doesn't give you any credit for paying early either!

Blue skies,

Jim

[mnealtx 0]

Having lived in (or had home of record) in Texas my adult working life, I've not had that pleasure, fortunately....

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[GARYC24 3]

I owe in Ca. Workng two jobs.
My Tax Agent gave me these vouchers to send in during the year, suppose to break even during the year.
I guess people like me who work 2 jobs make too much money! haha
I owe both this year. Feds and state, State is more.
However, I'm also on payment plan with Fed.
From experience years ago, the state will not work with you, and can garnish your wages without any written warning, they'll contact employer and take it all!

[mnealtx 0]

Sounds like yet ANOTHER reason for me to not live in Cali!!

No offense to those that live there, but I don't think I could manage all the petty bullshit...

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[Buried 0]

we lose 3% in IL

Where is my fizzy-lifting drink?

[BillyVance 35]

Wow... you owe MORE in state taxes than Federal taxes? I've never seen that! Then again, my brother used to live in CA, now he lives in Hawaii...

"Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban

[GARYC24 3]

My taxes that I owe are due to working a PT job claiming 0-0 and still clearing ~500 month extra with
my main day job. All that combined they still don't take enough out, so, I have to compensate that with these 'vouchers' to send in during the year.
Tax man can figure it out.
California is very large state and very nice to live at.

[BillyVance 35]

Quote

My taxes that I owe are due to working a PT job claiming 0-0 and still clearing ~500 month extra with
my main day job. All that combined they still don't take enough out, so, I have to compensate that with these 'vouchers' to send in during the year.
Tax man can figure it out.
California is very large state and very nice to live at.

You can also change your W-2 forms to have extra money withheld for taxes, so you pay it each paycheck, rather than a larger lump in those vouchers, which I think are sent quarterly.

"Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban