Am I paying too much in taxes???

Question

My income is ~63k and I paid $8500 in federal taxes. So that adds up to ~ 13.5% of my income going to federal taxes. Which is fine...I have 3 exemptions (for some reason my exemptions is 3 but I have no dependents). But my refund after filing taxes is only ~$300 after filing through turbo tax online? I don't have any deductions or credit to claim so I was thinking this is reasonable? But seems like everyone around is me is getting large refunds. There is no state income tax here in Texas.

Answer 1

Seems like you are doing it right, as long as you don't owe.

Answer 2

Remember what a refund is.  It is the government just giving you back your own money.  It is like getting change back at the store.  If we each buy a $5 item and you pay with a $20 bill and I pay with a $50 dollar bill, you would get $15 back and I would get $45 back.  Am I any better off than you?  No.

People who get large refunds are having too much withheld.

Where you are at is perfect.

Answer 3

This is the ideal place to be in. Your taxes are about right. People around you will have different situations? Own a home, children, married? Lots of factors.

Answer 4

hello - you are doing it right.  (your friends are paying too much and then getting it back)  you always want the IRS to owe you a little ($100-300) or you to owe them a little ($100-300).  If they owe you alot you just gave them an interest free loan for 1-12 months, and better for you to have then money to save or whatever than for it to sit somewhere not getting interest.  So the goal should be to net out at $0 - which pretty much never happens, but a little either way is perfect.  Good job.