My daughter, 18, made $7800 last year between 3 jobs (3 W-2's). $37 was deducted for state taxes for Vermont, yet Turbo Tax is saying she owes $8 to the state. How?

carolinertaxes23,

That additional $8 is about right.  Your daughter is a dependent so she gets no Vermont personal exemptions, only the $6,500 standard deduction.  $7,800-$6,500=$1,300.  Using the 3.35% minimum tax rate, this results in a tax due of $43.55 which rounds up to $44.  Assuming that it was $7,8xx rather than $7,800, this could easily move up to $45 instead of $44.

For the future, though, there can be a bigger picture.  If one works two jobs simultaneously rather than separated in time, the withholding tables are applied by each employer as if that was the employees only job.  Because federal and Vermont income taxes are progressive, i.e. the percentage of the tax increase with increased income, this often results in tax being taken out at too low a rate.  If the deficiency isn't too large, under $1000 for the federal return and under $500 on the Vermont return, she can congratulate herself on not making an interest free loan to the government for a year.  However, she can always change one or both W-4 forms to ask for a bit of additional tax, e.g. $5 or $10, to be withheld from each paycheck.