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This guy knows what he's talking aboutQuote:
Originally Posted by m2711c
No wife no kids just lots of dispersements
Spent Monday getting the tax talk run down blah blah blah blah you owe 5k hey not bad hey dad can you help me I'm headed to Vegas on Wednesday
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What's your average federal tax rate?Quote:
Originally Posted by axebiker
If you're paying personal property tax in Mass on domestic furnishings you're doing it wrong. Exempt. One Mass. law I like, maybe they have it other places, is if you're sixty-two and have lived in a place 5 years you can defer property tax until the house is sold or you die. My bro is doing that. Poof, no more property tax.Quote:
Originally Posted by Core Shot
I read: "I am not interested in politics but politics is interested in me."Quote:
Originally Posted by axebiker
It’s weird, because tax policies are one of the few that actually get enacted routinely by both parties when they’re in power, and they’re very, very different between the two.Quote:
Originally Posted by jono
Take your pick, but they’re definitely not the same.
My payroll people pointed me to an online calculator that converts what is on the new w-4 into amount withheld in paycheck:
https://www.paycheckcity.com/calculator/salary
My taxes have been really messed up since the new W-4 went into effect.
I'm an employee. I'm unmarried. I take regular payroll deductions. On the W-4 I claim no dependants but I do claim a $3,000 deduction because I itemize deductions way over the standard deduction (I had roughly $23k in deductions this year).
I ended up owing a 5 figure amount in taxes for the second year in a row. As best I can tell, the numbers check out- the delta between the taxes withheld and the taxes that I owe are this 5 figure amount. What I can't figure out is why my employer's payroll software is withholding an amount that is so small in comparison to what I owe. Like, I'm coming out with a tax bill that is enough to buy a decent used car and paying the IRS interest penalties as a W-2 employee while claiming no dependants and claiming only $3k in additional deductions when I end up with roughly $10k in additional itemized deductions above the standard deduction.
My compensation is a bit variable from month to month, and I do get a large bonus check (roughy 30% of my yearly pay) at the beginning of the year.
Do I need to set up additional withholding?
That's what I would do.Quote:
Originally Posted by Kevo
Myself and a bunch of coworkers all paid in this year too. Typically, we finish the year and are between owing 100 or getting 300 to 500 back. This year, we're all paying in 1400 to 2000. Wtf
I will guess either: you have significant other sources of income (dividends, interest, stock sales, etc) or you are highly compensated and five figures is a relatively small percentage of tax paid.Quote:
Originally Posted by Kevo
But yeah kill the extra w4 deduction too, that's taking things in the wrong direction for you.
I did have dividends and interest income, but not a huge amount compared to my dayjob W-2 income. The amount I owed is roughly 25% of my total federal tax for the year.Quote:
Originally Posted by bfree
Will kill the W4 deduction going forward.
it's also possible that your bonus isn't being taxed correctly. Or that you "regular" pay is being taxed without consideration of the bonus, so it's being taxed at the wrong (lower) rate.
Owed about $3k extra. Seems like a small price to pay considering all the time I spent recreating and sleeping on federal land. Plus ya know.... I get to live in America in modern times.
So, yes on both accounts :)Quote:
Originally Posted by Kevo
Your bonus is likely being withheld as "supplemental income" at a flat 22% rate but you're far from the 22% bracket with those numbers, so that's going to be the biggest reason for you. Yeah bump up the withholding manually.
It doesn't take a lot of "interest/dividend" income to significantly change your tax bill. I'm no tax guru, but my thumbnail estimates were that it would have been bang on for me without that extra income, but less than $4k of that income meant I owed close to $800.
Lol, yes on both accounts.Quote:
Originally Posted by bfree
I've been looking through paystubs trying to better understand what is going on and yes, you are correct on that point as well. My yearly bonus was taxed at 22%. I'm in a much higher tax bracket.
You could also have your accountant set up quarterly pre payments.
So I send my taxes to my CPA as I've been doing for the last many years. He's not super communicative, so I think nothing of not hearing back for a few days. Thought of an additional deduction and send it in. Get a reply he's in the hospital. I reply best wishes recover quick. That was a week ago and no word back. I don't really want to bug him but would be nice to know if I need to file an extension. I've always hit the deadline partly because I presume an extension might trigger a more likely audit?
This was my guess before you confirmed it. I’d update your w4 for additional withholdings to the amount you paid this year, or ask payroll if they can deduct your bonus taxes the same way they do your paycheck. My company does this as we have very bonus heavy comp schemes.Quote:
Originally Posted by Kevo
If you didn’t already you are likely to get hit with an underpayment penalty if you do nothing.
Good to know. My company is a small subsidiary of large company (18k employees) which is itself a subsidiary of a megacorp (165k employees). The megacorp handles payroll for us in the US and unfortunately I can't get them to make any changes on my behalf.Quote:
Originally Posted by neufox47
Yep, I got hit with an underpayment penalty. It isn't the end of the world because I did earn interest on the money over the past year. Gotta update the W4 next week.
I always owe about 5K cuz the gov does not take enough since I completely retired,
I could give them quartrly instalments or just not worry
cuz I am not that guy complaining about things I don't understand
Due at the end of april I can do taxes submit and pay online in about half an hr
It would be nice if there was a safe harbor--if you submit an accurate W4 and you're still underwithheld there'd be no penalty. Better yet eliminate all penalties as long as your taxes are paid in full by April 15 but that's not going to happen. Withholding penalties are a tax on middle income earners.
I fuckin owe the IRS a lot of money lol it sucks ass and balls
We had to pay ~$50k last year. Sucked. Hoping for better results this year. Had to file an extension though because my pos system isnt talking to QuickBooks correctly. FML. Hate having that shit hanging over my head.Quote:
Originally Posted by mall walker
yup. 2 years ago was like 110, last year was almost 70, this year will also be ugly. I like to be fashionably late even on the extension though so I'm not sweating it yetQuote:
Originally Posted by Name Redacted