Question for a tax smart person. Why do I owe?!

  1. This is the year I thought I was going to get the big refund. I have the first complete year of interest on my house. I thought mortgage interest meant a big refund, and instead I owe this year. I was going to send my taxes through the free e-file, but when I saw I owed I just saved the form without sending it. Are there any other people here who are single, childless, have no extra deductions, and own their own homes? I'm just curious to see if anyone else in my situation owes money this year.
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  2. 16 Comments

  3. by   itsme
    My suggestion would be go to a CPA. For some unknown strange reason when we went to the tax service we always paid in, now we go to a CPA, for only about 100$, he does our taxes and we have really nice refunds. There is so much stuff that is tax deductable that we never knew of. Check into a CPA, they also have electronic refund, so we got our money in less than 2 weeks. Good luck!
  4. by   JonRN
    Q. Does anyone know what CPA's use for birth control?

    A. Their personality.

    Actually, going to a CPA is very good advice. If you are self-employed, you can't get by without one.
  5. by   emily_mom
    Originally posted by Brita01
    This is the year I thought I was going to get the big refund. I have the first complete year of interest on my house. I thought mortgage interest meant a big refund, and instead I owe this year. I was going to send my taxes through the free e-file, but when I saw I owed I just saved the form without sending it. Are there any other people here who are single, childless, have no extra deductions, and own their own homes? I'm just curious to see if anyone else in my situation owes money this year.
    Key words.....single, child free, no other extra deductions.....

    We didn't get much from our interest on the house since we've bought it. Now kids....they're the ticket to big tax returns.... (especially the ones in day care....). But, you have to look at what you spend...doesn't equal out.

    Compare your tax form to last year's. What changed? Less taken out? More income? Is this about what you had to pay last year?
  6. by   RN2B4SUR
    Brita01--the first thing you may want to check is your with holdings on your paycheck. For a single person, this is the main determining factor. I also agree that you should go see a CPA. I was to owe this year also(over $2000) and then I ended up getting a refund of close to $500. Nice turn around huh?! Leave it up to the CPA's cause they know what is deductible.
  7. by   llg
    I am in your situation ... single, childless, own a condo. It's simply a matter of the math. Yes, the mortgage interest DOES probably reduce your taxes a bit. To find out how much, do your taxes both ways -- once with the deduction and once without it. Unless there are some other quirks in your financial situation, you should find that the mortgage interest deduction DOES reduce your taxes.

    Unfortunately, the amount of the tax reduction is probably not as much as you assumed. It's only a percentage of the total mortgage interest you paid. Like me, you may simply have to arrange to have more withheld from each paycheck if you want to avoid having to pay the difference all at once in April.

    If you think you are missing other possible deductions that you ccould be taking, a CPA or some other tax professional might be worth the investment. For me, it is not. My financial affairs are so straightforward that it would be a waste of money to pay someone else to do my taxes for me. I have my deductions for mortgage interest, state and local taxes, and charitable deductions ... and that's about it.

    I'm sorry it didn't work out as you had planned. There are no special tax breaks for us single folks! We're the ones who supposedly have it so easy that we afford to pay a higher percentage so that other people can get tax breaks. When I am in a generous mood, I don't mind that. But sometimes (in my less generous moods), I wish that others would realize that we single people have special needs, too.

    llg
  8. by   Brita01
    Thanks guys for your responses. I used the H&R Block e-file program and it shows you the difference with every possible situation including every deduction you can take. After I took out some deductions for home health nursing, I owed less, but still owed.

    llg, I feel exactly the same way. I'm working to pay taxes for other people's children and they're getting the big refunds while I end up owing. And I'm not talking about the hard-working people of the country either, I'm talking about the others. Anyway, that's a whole different thread.

    I didn't get a huge return last year at all and I'm making more this year. Also, a lot of my pay was same day, so I think that's the big difference. I'll just have to stop making those imaginary home upgrades with the mortgage interest I thought I would be getting back. :chuckle
  9. by   memphispanda
    Brita--the ones that burn me up are the ones who get a "refund" when they never paid taxes in the first place.
  10. by   KC CHICK
    Originally posted by Brita01


    llg, I feel exactly the same way. I'm working to pay taxes for other people's children and they're getting the big refunds while I end up owing. And I'm not talking about the hard-working people of the country either, I'm talking about the others. Anyway, that's a whole different thread.
    Ain't that the truth! Frustrating when your single and have no kids. It's almost as if the gov't is punishing us for making the decision not to reproduce right now. I'm married but have no kids yet....geez.

    Anyhoo, have you taken any classes this year?...you can deduct the cost of the classes and the cost of books. It helped us get a little bit more back this year.

    Hope you can figure something out..Good Luck!
    Anne
    Last edit by KC CHICK on Mar 19, '03
  11. by   OBNURSEHEATHER
    Don't forget uniforms, shoes, CEU's, liscense renewal, etc.
  12. by   itsme
    I wouldnt trust HRblock people at all. they take a 6 week prep course on taxes, whereas a cpa has a 4 year degree and has to take a certification test. Just my opinion! I love the birth control joke!! I laughed right out loud at 5 am!!!
  13. by   NursieRN
    My tax return doubled when I mentioned I was paying back
    student loans!
  14. by   Brita01
    Originally posted by memphispanda
    Brita--the ones that burn me up are the ones who get a "refund" when they never paid taxes in the first place.

    Ditto.

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