conversation: User (nit_guy): "Looking at my w-2, it shows the following:\n\nWages: 50659\nFederal tax withheld: 5594\nState tax withheld: 3295\nMedicare tax withheld: 770.67\nSS wages: 53149\nMedicare wages: 53149\n\nI entered the above information into taxslayer for an estimate, and I owe around $400, with the standard deductions of $6,200.\n\nI am living with my MIL, and I pay her rent + utilities via a cheque, can that be considered " Supporting a relative" for dependents purposes?\n\nIf I choose the " Supporting a relative" and enter 1, I get a refund otherwise.\n\nCan someone please suggest, whether I should be owing or getting a refund?\n\nThanks\n\nEdit: I am also married, but the above applies for, Married IF filed Separately.\n"
  User (nit_guy): "So how do I end up owing money to IRS, that is what really confuses me :/"
  jobforacreebree (jobforacreebree): "Because you didn't have enough taxes withheld throughout the year. "
  User (nit_guy): "How is that possible, I filled out the normal tax forms and shouldnt the employer be deducting the right taxes?"
  jobforacreebree (jobforacreebree): "There's a form (I9 or something [edit: turns out it's a W-4], you fill it out at the start of employment usually) where you put in your dependents, if you put down 0 then you will have the most withheld and have the least possibility of owing anything to the IRS. If you put down dependents that you don't actually have...well then you'll probably owe money."
  User (nit_guy): "I am looking at my Form W-4 that i filled out when starting out my new job, and I put 1 for:\n\nEnter '1' for yourself if no one else can claim you as a dependent?\n\nI also put 1 for:\n\nEnter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)\n\nMy wife works too."
  xtrexjpsouz (xtrexjpsouz): "So you claimed 2 exemptions total on your W-4?\n\nRead this part carefully:\n\n&gt; Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or more than one job.\n\nYou have a working spouse AND you mentioned in another comment that she works more than one job... so it would have been perfectly acceptable for you to claim only one exemption (the one for yourself). This would give you a slightly larger refund, or at the very least reduce the amount you owe at tax time."
  User (nit_guy): "She only got the second job, after I had my first job in the US and in November 2014.\n\nI have been working since May 2014."
  