Tax Question

[enron29]

I know, boring tax question. I was gonna just post in another thread, but didn't want to hi-jack.

So I worked through my taxes this weekend, and I know the key goal is to break about even, which is what we will be I believe. However, it works out that we get about $1,500 back from federal, but owe state $1,300.

Is that typically how it works to break even, getting federal back but owing state? Seems like the state of CA has changed a lot over the last couple of years. We always used to get back about $300, but now it seems like we owe up to a grand to state. Weird.

Just trying to figure out if this is breaking even, or if there is a better way to break even on both sides. Thanks.

[enron29]

Wow, was hoping to get at least one tip. Anyone?

[gatorfast]

Talk to your accountant. There is no "typical" when it comes to tax refunds/owing. It all depends on how you are employed, what deductions you have, etc etc.

All that says is that too much was withheld at the federal level and too little at the state level. You can adjust that going forward by re-doing your w-4 (if you are employed) or by adjusting your estimated tax payments throughout the year.

[Undertow]

There is no tip that can be given without knowing all of the specifics of your returns. State and federal taxation systems can be very different. I'm not familiar with CA state rules but there may be some federal deductions that get phased out for state purposes. I think CA passed a tax increase last year as well.