According to the Tax Calculator it says I will underpay by $ 2,000? How if I used Zero exemptions?

Question

I will have a gross pay of $30,080 and $3,900 in federal taxes withheld this year. When I filled out my W-4 form I put Zero exemptions to cover myself so I do not have to owe anything. I am single and no children. Why does the Withholding Calculator say I will underpay by around $2,300? That does not seem right. Help please! I don't think should owe anything.

Answer 1

Gross income of $30,080 means taxable income of $20,330, and tax of $2,615. So, you didn't use the calculator correctly, or your numbers are wrong.



Also, your federal wages for tax purposes may be different than $30,080. If you had retirement money taken out of this, for example, the number would be smaller.

Answer 2

You're doing something wrong. There's no way that you would owe.



The withholding on $30,800 is roughly $3,900 (I get a hair less, not enough to be significant). The tax on $30,800 if you cannot be claimed as a dependent, are Single, have no dependents, and use the standard deduction is only $2,723. $3,900 - $2,723 = a refund of $1,177.

Answer 3

the amount of deductions on your form, sets the percentage they withold weekly. that doesnt seem right, i do zero to get a bigger tax return, are u sure the book keeper did zero, single does pay higher taxes but, anyhow, if this turns out to be correct, go to payroll and increase your witholding, you can do that, and put extra funds to be taken out so at the end of the year, you have that paid already, or save all year to pay it. sorry i hope the calculator was wrong.

Answer 4

Because the calculator you are using is using $30080 as your FICA taxable income (total earnings).

But for income tax you have the standard deduction and any other pre-tax deductions, which brings your income to around $24500 at the most (we don't know your pre-tax deductions so can't give you an actual value). And your federal income tax should be some where around $3500, at the most. Giving you a small refund.

Answer 5

your non taxable as a single person, no dependents is $9750 which leaves $20330 taxable and my CCH tables show income tax of $2624

you should have a refund of $1276

Answer 6

You did it wrong.

Answer 7

use the IRS.gov on for better info.