Why does my husband always owe at tax time?

We have checked his W-4, he is claiming single and 0 dependents, but still always has to pay. He really doesn't have any deductions. The house is in my name, but it didn't really make a difference when I tried to put it on his return (I try all combinations to see how we can get the most money). Does the overtime he work, hurt his return?Why does my husband always owe at tax time?
One's refund or tax payment is based on the difference between one's total tax and what has already been paid. It sounds like his employer is not deducting the appropriate amount.





Is he a statutory employee? This is common in a commissioned sales position when the individual is paid on a W2. In such a case, the employer will not deduct income tax and the individual is responsible for quarterlies.





In any case, as long as the IRS doesn't consider his underpayment excessive, and you have the money to pay the tax, this is actually a good thing. Most people look forward to a big return, not understanding that this represents an interest-free loan they've given Uncle Sam. In your case, it's the other way around.





.Why does my husband always owe at tax time?
It's not that he's working overtime, but that his total income isn't working the standard W-4 logic. When you get past $40,000 or so, the W-4 starts to break.





For 2009, I would recommend that you sit down quarterly with the pay stubs, go to irs.gov and run the withholding calculator and let it estimate your yearly income from the ytd-estimates and make a recommendation. Or you can sit down and do a minit tax return on your own and do the same guestimates. Or, if he always owes, say $500 at tax time, take $1000, divide by the number of pay periods left in the year and add it as the fixed withholding amount on the W-4.
My boyfriend changed his w-4 to have more federal tax taken out every week. Right now he is claiming 0 with an additional $25 weekly.


I would recommend changing his w-4 and having an additional amount taken out every week. Pick an amount that is going to help at the end of the year but not hurt you throughout the year.
Why aren't you filing a joint return? Sounds like you're filing separately and that's the problem - he's making too much for the amount of deductions he has. Yes - the overtime is probably what is causing him to owe money - not enough is being withheld. Try calculating it with a joint return and use all of your deductions together on one return %26amp; see what happens.
It has more to do with the total amount on his income, not just the OT he receives. Regardless of how he files, if he wants to avoid paying the IRS when he files his tax return, he can fill out a new W-4 %26amp; have add'l monies withheld from his paycheck.





Contact the employers' HR or personnel dept, or go to http://www.irs.gov/pub/irs-pdf/fw4.pdf to download the form %26amp; give to the employer.





If you haven't already, the 2 of you should consider filing jointly (MFJ) vs. separately (MFS), as this generally will be more to your advantage. You can calculate both ways to see which provides a better outcome for the two of you. If one of you filed as MFS already, you can amend that tax return to MFJ by sending the IRS a 1040X. For a 1040X, go to http://www.irs.gov/pub/irs-pdf/f1040x.pd鈥?/a> to download this form.
If the house is in your name he cannot write off all that interest. If you don't have kids to claim then he looses there too. If he is basically married and has no deductions he is going to take it up the behind no matter what, Over time or not.
Could be the overtime is putting the withholding out of whack. I always have to pay too, so have extra withholding taken out of every paycheck so it doesn't hurt so bad at tax time.
he can file a new w-4 at work to have an additional amount withheld from each paycheck (like 15 or 20 bucks more)it seems that not enough taxes are being withheld.