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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
Whining about paying taxes on money you made? So fucking dumb.
Can't speak for the other guy but I'm purely flexing and mostly jokingQuote:
Originally Posted by jackstraw
Think how much money the US money makes each year by requiring quarterly tax payments versus all on April 15? Billions? Trillions? And you want to get rid of this? Who do you think would benefit most from your proposal? It aint the middle class.Quote:
Originally Posted by old goat
Everyone has a different situation. Limiting tax liability is a difficult game to play and sometimes you just flat out lose. Paying large amounts of taxes all at once is a tough pill if you aren’t used to it.Quote:
Originally Posted by jackstraw
Yeah, it's not fun, but it's also poor planning and/or not understanding your finances. Hire a CPA and set up quarterlies. If you still owe big then you had a phat year. Yeah, making a shit ton on interest and dividends can possibly catch you by surprise, but it shouldn't a 2nd time. It's just not that hard.Quote:
Originally Posted by Name Redacted
Both wife and I are in education/ so our pay is pretty much the same/ fixed income year after year….no big changes. Have always set things up to be about neutral….no payment/ little bit of a refund……this year all of sudden a 2000.00 payment……ridiculous.Quote:
Originally Posted by NW_SKIER
My college age kids even have payments…..which is like unheard of.
This has all of us saying wtf?……
Doc at our free financial planning seminar was whining about paying taxes. This ^^^ is what the CPA told him. I think she used nicer words, but yeah.Quote:
Originally Posted by jackstraw
I get you were joking but the doc ^^^ wasn't.Quote:
Originally Posted by mall walker
Meh, I'm sending the Feds 12K and the State 1.5 K on Monday along with 7K in Q1 2024 estimated payments.
My fault, I underestimated how much business I was going to do in 2023 and exceeded my estimated taxes.
Not exactly a bad problem to have.
For us….its how little money we made/……so 2000.00 due now is a big chunk we were not expecting.Quote:
Originally Posted by jackstraw
We can/are paying it….but for what we have done over the past 30 years for other famiies, we deserve to whine just a little…..especially when you thought everything was set up to be like all the other years past tax returns.
I think it's somewhere in between. And a lot of the anecdotes here are from people that did try to plan. There were definitely surprises this year.Quote:
Originally Posted by jackstraw
Pretty much this. We just do the annual review every March/April with our CPA to tweak things.Quote:
Originally Posted by jackstraw
First time since we bought our first house 25 hears ago that we received a federal tax refund. Oregon has a kicker bonus for 2023 year from over funded state coffers, so that was a nice $10k state tax refund.
We have CPAs. We bought another business, owned another, bought and sold stocks, sold investment property, bought and sold business vehicles, etc. so it was a complicated year. This year is too, but for some of the same reasons, as well as some other issues. Completely in the dark as to what the outcome will be. At least last year we sorta had a ballpark of what the damage would be.Quote:
Originally Posted by jackstraw
Sounds to me like our system of assessing income taxes is tremendously fucked up.
I think complaining about the administrative part of paying taxes is reasonable. Take that shit out of my income and stop making me jump through fiery hoops to send money.
Well your situation sucks. Teachers should be tax exempt imo, but I'm biased.Quote:
Originally Posted by BC.
Yeah, but you made a lot of money. Maybe a bunch on paper, so you'll have to dip into the piggy bank. I did too, but I certainly don't feel bad for myself.Quote:
Originally Posted by Name Redacted
Now douchebags like Dump who cheat multiple ways and/or file chapter 11 to eacape can fuck the fuck off.
I do think ‘23 was a funky year. Our CPA had us do quarterlies last year thinking we’d break even. Got a fat check back. Then already wrote a fatter check back to the feds for some stuff vesting. Not her fault. The company I work for has some weird ways of handling equity which we’re both figuring out. While the check sucked to write, I’m hoping it’s buying a few years of retired age but who knows. Maybe we tank. Either way, the middle income tax breaks expiring and the way W4s are working now, it’s not as easy to plan other than setting some money aside earmarked for the gov just in case.
If I hang out at the local craft brew when the bro's talk about taxes everybody talks about what they get back,
I can say well ya you are getting money back but its not new money its your money and the gov has had it all year but whoosh
but nobody goes yehaw I owe 5000
That was me last year, I edited my W4 and ended up paying $250. That’s close enough to even for me.Quote:
Originally Posted by NW_SKIER
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I have to laugh at all the wealthy people here complaining about their tax burden. Some of you are paying more in Federal income tax than a lot of us make in a year.
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My first year of pulling from my 401k for retirement and the tax problem is the opposite of many.
The 401k company takes 20% Fed from each withdrawal, and you can't reduce that %. I can change the state taxes withheld and estimated 5%. Since I didn't take out enough to get past the 20% tax bracket, I got a fat check back. I even got a little back from the state. I wish I could play with the %s and break even or pay a little in.
No idea if the 20% is aFed rule, a 401k rule, or something my old Corp put in place for the 401k. Oddly enough, I could set the state to take out 0%, but would pay in and probably get a penalty.
That must a very weird 401 custodian company rule??. ..according to law...the RMD percentage can range from 2.0 to as high as 27.4... It depends on your age and the amount of $ in the retirement account as of December 31....but the withholding % of the distribution depends who the custodian is... If you have a account custodian.Quote:
Originally Posted by Iowagriz
Empower is the custodian. Maybe due to pulling at age 58? I meet all the rules for taking it out "early", so no penalties are involved. Maybe something they have in place for others that might get penalized? I'm hoping that it all changes as I age (over 62?).Quote:
Originally Posted by up an down
When I call the custodian of my 401K (Fidelity) the rep has to look up the rules because every corporation they handle has different rules for its retirees. And if I have to talk to more than one rep I sometimes get different answers.Quote:
Originally Posted by Iowagriz
I don't mind the taxes I pay. I mind having to think about and calculate my taxes from November through February, At least I don't have to do quarterlies anymore.
I gotta laugh when people wear their low income like a badge of honor and think others are wealthy because they have a tax burden higher than those folk’s annual income. It is like they don't realize that we are just the income bracket that is stuck in the middle and getting fucked from every angle despite working our asses off to try to get ahead rather than just languishing away and sucking the system dry. We make too much to get many tax incentives, but have to make as much as we do just to live where we grew up.
Stop pitting the middle class against each other. It is the people a few rungs up we should all be fighting but they make the rules.
I don’t have a low income but thanks for the concern. I’m assuming you were addressing me. If you’re paying more taxes than the average income in the US($40k) you’re pretty well off no matter where you live. There’s a whole lot of people making that $40k+ that aren’t sucking the system dry. Be happy with what you have and stop complaining.
If you’re making more than $150k you’re in the top 20% of households for income, I’d consider that wealthy even if you don’t.
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Certainly time to tax capital gains as ordinary income and bring back brackets more like what we had in the 50's.Quote:
Originally Posted by Name Redacted
the taxing of Long Term gains as ordinary income only works if you index the basis of the capital to some sort of inflation metric. You shouldn't pay ordinary income tax rates on the portion of long term gains attributable to inflation/devaluing of the dollar.Quote:
Originally Posted by old goat
I say just extend the minimum time line on cap gains. Call it splitting the difference.
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"only works" lol. which I take to mean maintains it's special and unfair treatment in the tax codeQuote:
Originally Posted by Master of Energy
Why should owners of capital's earnings be exempt from tax on inflation? As wages(ordinary income) rise due to inflation their is no relief from inflation, and in fact there is a penalty because the income tax is progressive.
Whatever your number is, that's fine, but don't assume everyone is living under the same circumstances. $150k doesn't go far where I live. My large tax bill was from selling an investment, yes it made money, but I used it in another investment in a small business. That's how it works. I'm just a guy trying to get ahead enough to retire someday. Large tax bills are a big deterrent to that.Quote:
Originally Posted by MagnificentUnicorn