BIG Difference in some numbers from '05 to '06

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Subject Author Date BIG Difference in some numbers from '05 to '06 michaelkb 01-21-2007  Re: BIG Difference in some numbers from '05 to '06 Harlan Lunsford 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 Don Priebe 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 Dave Filpus 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 joetaxpayer 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 joetaxpayer 01-23-2007  Re: BIG Difference in some numbers from '05 to '06 Phil Marti 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 Taxmanhog 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 Seth Breidbart 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 Arthur Kamlet 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 L K Williams 01-22-2007  Re: BIG Difference in some numbers from '05 to '06 michaelkb 01-23-2007  Re: BIG Difference in some numbers from '05 to '06 Harlan Lunsford 01-24-2007  Re: BIG Difference in some numbers from '05 to '06 kastnna 01-23-2007  Re: BIG Difference in some numbers from '05 to '06 michaelkb 01-31-2007  Re: BIG Difference in some numbers from '05 to '06 Phil Marti 01-31-2007  Re: BIG Difference in some numbers from '05 to '06 Harlan Lunsford 01-31-2007
Posted by L K Williams on January 22, 2007, 3:40 am Please log in for more thread options ichaelkb@hotmail.com wrote: > At least, big to me. I took out my social and last name, but > please see the in the screenshot: > > The left is 2006 and the right is 2005: > http://www.thefreeimagehosting.com/Uploads/Images/4560717812500TaxComparo.jpg > > My conxern is the "total tax" number. My salary went up > about 10k, but since everything else is the same, I don't > understand why this number varies so much. I believe I went > from a 25 to 28% tax bracket, but it still seems so far off > from last year. My wife did some research, but basically we > don't really know how to track this down and get to the > bottom of it. Any hints anyone? She was reading something > about tentative taxes having to do with it.. but we're not > sure. It appears that the question is why the tax was so low in 2005. Did you claim one or more credits in 2005? Maybe an education credit? The 2006 tax looks to be about right but 2005 is way too low. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by michaelkb on January 23, 2007, 2:04 am Please log in for more thread options Thanks for all of your help! For some clarification: I filed 3 children both years I filed 9k of home interest both years I had 2k in real estate taxes both years Last year I had to pay penalty of 600 because of too much writing off? And 300 this year. They also took 600 FROM our child-refund for whatever reason ... I'm guessing it has to do with salary and write-offs... another penalty. They did not do that the year before. Does this make since? Thanks again for your replies! << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Harlan Lunsford on January 24, 2007, 1:56 am Please log in for more thread options michaelkb@hotmail.com wrote: > Thanks for all of your help! > > For some clarification: > I filed 3 children both years > I filed 9k of home interest both years > I had 2k in real estate taxes both years > Last year I had to pay penalty of 600 because of too much > writing off? > And 300 this year. > They also took 600 FROM our child-refund for whatever reason > ... I'm guessing it has to do with salary and write-offs... > another penalty. > They did not do that the year before. > > Does this make since? Not completely and not yet,Michael. Somewhere up there you mentioned a wife. How did you (and her) file in 2005? Jointly? And what status are you "trying" to use for 2006? Really, I think that's the key. ChEAr$, Harlan Lunsford, EA n LA << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by kastnna on January 23, 2007, 2:04 am Please log in for more thread options joetaxpayer wrote: > Second bit, is that you are getting refunds in both years of > a huge portion of the tax withheld. Raise your W4 exemptions > to reduce withholdings. Put the money in the bank, if you > feel you don't want to put it away long term. Using Uncle > Sam to save with no interest on your money isn't a great > idea. Good point, Joe. You wouldn't believe how many clients I meet that "like getting a refund back." That annoys me to no end. Sorry for the off-topic comment. << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by michaelkb on January 31, 2007, 4:53 pm Please log in for more thread options > michae...@hotmail.com wrote: >> At least, big to me. I took out my social and last name, but >> please see the in the screenshot: >> >> The left is 2006 and the right is 2005: >> http://www.thefreeimagehosting.com/Uploads/Images/4560717812500TaxCom... >> >> My conxern is the "total tax" number. My salary went up >> about 10k, but since everything else is the same, I don't >> understand why this number varies so much. I believe I went >> from a 25 to 28% tax bracket, but it still seems so far off >> from last year. My wife did some research, but basically we >> don't really know how to track this down and get to the >> bottom of it. Any hints anyone? She was reading something >> about tentative taxes having to do with it.. but we're not >> sure. > Michael, your (taxable) income rose from $27,971 to $37,836 > or $9865. Your tax rose from $1479 to $4007 or $2528. You > are in the 25% bracket, which in 2006 was for joint income > over $30,650. There are other anomalies that allow or remove > certain credits or deductions, thus creating phantom > brackets, but you can see > http://www.fairmark.com/refrence/2006reference.htm > for the easiest-on-the-eyes view of rates. > > One bit of advice I'm compelled to offer: First, do you have > access to a 401(k)? If you put some of that raise in it, you > can save 25% on taxes by doing so. If your employer matches > the deposit, put in enough to get the match, it's free > money. If they don't have a 401(k), consider using IRAs to > save. > > Second bit, is that you are getting refunds in both years of > a huge portion of the tax withheld. Raise your W4 exemptions > to reduce withholdings. Put the money in the bank, if you > feel you don't want to put it away long term. Using Uncle > Sam to save with no interest on your money isn't a great > idea. Thnx for the response. My wife doesn't work. Both years we were married filing seperately. << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted Two candidates Tax Plans - better numbers? October 19, 2008, 4:58 pm AMT Difference June 22, 2009, 5:14 pm Re: 401K vs IRA maximum annual contribution limit difference April 11, 2006, 3:31 am Re: 401K vs IRA maximum annual contribution limit difference April 14, 2006, 4:04 am difference between adding short dividends to cost basis or investment interest January 22, 2008, 5:41 pm