Why is my state tax refund the same as my state tax withheld?
I'm a servicemember (Marine) stationed overseas with a small unit in Africa in a non tax free country, we also don't have anyone to help us with our taxes. I am doing my taxes online using turbotax.com and im ready to e-file my taxes but my state refund is the same amount of the state tax withheld in box 17 of my W-2. The last three years that I have done my taxes I never got NEAR this much back from the state of new mexico. Can this be right? maybe turbotax has got it wrong?
- Bostonian In MOLv 71 decade agoFavorite Answer
New Mexico exempts active duty military pay from State income tax. While the income is included on Form PIT-1, it is pulled back off on Form PIT-ADJ. If your active duty pay was your only income this is why you are receiving a full refund of all taxes withheld.
Military pay is not eligible for the Foreign Earned Income Exclusion alluded to by another respondent. Any earnings from the US government or any of its instrumentalities isn't eligible for the FEIE and that includes military pay.
- hogainsLv 44 years ago
there's a W4 withholding calculator on the IRS web page. Google it, bypass there, and plug on your suitable numbers for 2012. you're probable now not likely to be accountable for any income tax till you have different income components it relatively is why none is being withheld. Regardless, touch your HR branch. Have them examine your federal and state W4 which you will have filled out once you first all got to work there. The W4 specifies your exemptions. make particular that's suited. be at liberty to invite them approximately your federal and state withholding once you're at it. it won't be in a place to injury. If each little thing is so as, i does not subject approximately it till you have different income components wherein case you may the two specify on the W4 to withhold an further quantity each and each paycheck or make quarterly predicted funds so as which you're actually not below withheld come tax time.
- hrblockrichardkLv 51 decade ago
Military personnel who are domiciled in New Mexico continue to pay New Mexico state income tax even when they are stationed in another state or country. However, the New Mexico tax return starts with your federal adjusted gross income. When you live overseas you are allowed under some circumstances to exclude up to $87,600 of your foreign earned income from your federal adjusted gross income. If you qualify, New Mexico seems to exempts the same amount of income from state taxation. New Mexico also excludes from tax all wages paid to full time acitve duty military personnel (even if subject to federal taxation). If these are the reasons, then your return may be okay. Another reason is that you could have mistakenly specified that you are a non-resident of New Mexico or the program may have assumed that if your mailing address is not in New Mexico.
These are just some possibilities.
This advice was based upon the tax law in effect at the time it was written as it applies to the facts described by you. See my profile for more details.
- Anonymous1 decade ago
that sounds right... if ur state withheld is very little they will give it all back to you. they gave it all back to me last year i believe dont worry