Wednesday, February 04, 2009

State Taxes aka Whu?!

So last year, we got a refund from Utah. Albeit a mere $15. Course, we only lived in the state for 2 1/2 months.

However, I'm confused by state taxes as there are minimal options when filing your W4 at work.

I add $20 every check for taxes, not only to ensure I pay enough, but that I get a slight advantage in my return.

Last year, we filed our W4s exactly the same as we always have, and never had any issues.

This time, we do our taxes: Char and I owe $530 to Utah.

How does that compute? I file 0 dependents while she uses the 2 for the kids. Nothing more.

And is there a way to modify this so it doesn't happen next year?

Help, my peeps!

1 comments:

Shauna said...

A couple of things:

1) The W4 is a FEDERAL form only. Asking to have extra money withheld on the W4 only makes it so you get extra money withheld for your federal taxes. Most states have a separate form to make overrides on state taxes, but Utah does not. If you want extra money withheld from state taxes, you'll probably need to talk to your payroll person directly.

2) Utah made drastic changes to the income tax calculations in 2008, so it's no surprise that your taxes were different than they were last year.

Also... I think that the way that Utah calculates income taxes is completely retarded. Jesse and I always end up owing as well, which I still don't understand since we're both claiming the right amount and then we get to take tithing and mortgage interest right off the top of our wages. It really doesn't make any sense.