Need a favor

[ILLMAS]

Can someone verify these amounts on your tax program:

single

69,030 wages

10,720 fed withholding

I verified against the IRS tax tables and they match the tax program. Client is surprised by refund size.

thanks

MAS

[Lynn EA USTCP in Louisiana]

I get a federal refund of $35.00

single, no dependents

1040A

AGI 69030

standard deduction 6100

personal exemption 3900

taxable income 59030

tax 10685

w/h 10720

refund 35

[ILLMAS]

Yes I already told the client he needs to verify his exemptions at work, I am thinking he is claiming 2 and thank you.

[Jack from Ohio]

He is probably claiming single with 1 exemption. I tell clients to ignore all the calculations on the W-4 and just put the status and exemptions you want.

[Mr. Pencil]

he needs to verify his exemptions at work

It might be more complicated than that. Because the tax tables incorporate the standard deduction, irregular pay can sometimes create underwithholding when nothing is withheld for several weeks. Also, sometimes a bonus will be paid sans withholding. It is very hard to plan for, other than deliberating taking a smaller paycheck each week. The bottom line is that his income level is about the worst in terms of our progressive tax brackets.