Submitted by CountessAlmaviva t3_10qc3s2 in personalfinance

I probably made the absolute least amount of money I’ve ever made in a year this year and I owe over $1,000 in federal taxes.

I work at a franchise spa, making an “hourly” rate and then I receive tips (only claiming CC) and commission. I made $33,901 for the entire year and $8504 of that was tips. I thought I had the max held from each paycheck but not holding any additional. I would appreciate some guidance as I don’t want this to happen to me next year.

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Werewolfdad t1_j6p3tmv wrote

Did you choose married for your w4?

You are required to declare all of your tips

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Werewolfdad t1_j6p4sni wrote

Your tax federal liability should only be about 2309. Seems you may have entered something incorrectly in your 1040 unless you have other income or a premium tax credit you don’t now qualify for or something.

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CountessAlmaviva OP t1_j6p4zwv wrote

Are you able to explain to me what a 1040 is? I typically have one income and file on H&R Block, so I’m pretty new to taxes.

Edit: I do have another income of $14,053 for the year but I owe because it’s a serving job. I also used to get some money from being a student but not a ton.

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MarcableFluke t1_j6p5cav wrote

> Are you able to explain to me what a 1040 is?

The main form you use to file your taxes. H&R block takes the information you put into their software, and fills out a 1040 (among other forms) in order to file your return.

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rcc1201 t1_j6paduj wrote

Is your total income $33901 or $47954 ($33901 from spa and $14053 from serving job)?

Your issue probably stems from not filling out the multiple jobs worksheet on your W4s for both jobs. They both think they're your only job so don't start withholding taxes until $12950 (standard deduction) resulting in double counting of the standard deduction.

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