nelsonm wrote:
Ha ha!
... I'm poor, though, so my effective rate is much lower than yours.
Well, you've got that going for you. Sounds hilarious.
nelsonm wrote:
Ha ha!
... I'm poor, though, so my effective rate is much lower than yours.
Well, you've got that going for you. Sounds hilarious.
You may have an IQ of 70 because 50% don’t have an IQ of 70 since 100 is the average and there are almost no people with IQs of 130. I am glad that the ignorant people went with their heart because unemployment is down, taxes are down, and the market is up.
The IRS has an estimated withholding calculator on their website. I strongly suggest everyone use this at the beginning of each year to avoid surprises like the OP's.
OP, it's hard to feel sympathy for you when tools like this are readily available. With all the uncertainty surrounding the new tax bill, why didn't you do your due diligence last year?
Coevett wrote:
Czech Republic, told last week I'd paid too much in tax last year and will get $20,000 back next month.
15% flat rate income tax.
How in Christ's name does one overpay by $20,000 with a flat tax rate? Dang man, bust out a calculator once in awhile.
Also, FYI it kinda sounds like you are bragging about giving the government a $20,000 interest free loan. Do you tip waiters $20 on a $50 meal, too?
The fat guy raised my taxes this year. Why can't he just have a heart attack already.
My company said because of the tax law, that they would get new withholding guidance from the IRS, and they recommended we redo our W-4 in the Spring of last year. I re-did mine and got back about $1k. Some of my coworkers didn't and owed about $3k.
$8k is a lot to underpay though. Did you have any untaxed investment sales or something? Even changing from itemized to the standard deduction shouldn't have hit you that hard.
I never knew you could get a penalty for underpayment. I just assumed if you paid the whole thing off at the end of the year you were good to go. I find this patently unfair as you're even expected to determine yourself how much you owe and when. Ultimately I find it the duty of the IRS to calculate and inform payors how much they owe as any other business (profit or non-profit) doesn't expect you to find out the price yourself. I understand there could be a cash-flow issue if everyone just paid at the end of the year, but that could easily be solved by just having enough in a float account to sustain a year of expenses as we should do regardless to have enough money to cover unforeseen expenses. Of course this relies on having a balanced budget, something we haven't had for 20+ years, but I can't understand how for the life of me congresspeople are content without fulfilling such a basic duty.
Luv2Run wrote:
dfa wrote:
Wtf, my company apparently didn't withhold enough taxes throughout the year, and just got slapped with a $99 fee.
That aside, the tax code in this country is a sh*t show.
22% effective tax rate. How you guys fairing?
You are responsible for setting your withholdings when you fill out a W4. Unless for some reason the company just did not put that in the payroll system.
The tax code is way too complex though. But this one sounds like it is on you.
You may also have to file quarterly next year with that level of underpayment.
There's no such thing as "filing" quarterly, you must be thinking of quarterly estimated payments. But he's already making payments with every paycheck, they're just not withholding enough. $99 on an $8,000 underpayment doesn't sound too bad. BTW, if have withholding taken from your paycheck and you happen to realize before January 1st that you're going to owe a lot, you can have a larger payment taken out of your last paycheck and avoid the penalty.
You can thank Trump for this mess, he pressured the IRS to quickly update their withholding tables after the tax cut so that everyone would immediately see a big, beautiful bump in their paycheck. But the changes were too optimistic and now lots of taxpayers are getting a large bill, especially if you live in a blue state.
dunes runner wrote:
dfa wrote:
Not understanding. What does my company not withholding enough have to do with Trump's corporate tax cuts
The excess $$$$$cash goes to Trump and his corporate fiends.
+1
Spoken like a true Democrat. Republicans want everyone to do well. Democrats only worry about themselves. Unemployment is down, income is up, taxes are down, stock market is up, but you are worrying about the 15% who are paying more taxes while the overall population is doing better. You should start worrying about your fellow man. When you get Socialist Sanders in office, you will pay double what you are paying now order to redistribute income. People will have no incentive to work and our economy will crumble.
Coevett wrote:
Czech Republic, told last week I'd paid too much in tax last year and will get $20,000 back next month.
15% flat rate income tax.
Not too bad. How's the rate for your Slovakian neighbors to the East?
IQ tester wrote:
You may have an IQ of 70 because 50% don’t have an IQ of 70 since 100 is the average and there are almost no people with IQs of 130. I am glad that the ignorant people went with their heart because unemployment is down, taxes are down, and the market is up.
That could all change by the end of the year. There's a good possibility of a recession which means a down market and higher employment. Of course King Trump will blame the Fed, or Obama, or China or even Putin. Lol. It'll be a riot to read Trump's tweets as he points the blame on everyone else but himself. ?
Dems are selfish wrote:
Spoken like a true Democrat. Republicans want everyone to do well. Democrats only worry about themselves. Unemployment is down, income is up, taxes are down, stock market is up, but you are worrying about the 15% who are paying more taxes while the overall population is doing better. You should start worrying about your fellow man. When you get Socialist Sanders in office, you will pay double what you are paying now order to redistribute income. People will have no incentive to work and our economy will crumble.
Really? When did that new revelation occur? (maybe everyone that's rich to do well. ?)
Higher employment is a good thing. Let's hope for that. Sounds like you know more than all of the financial experts. I assume you are selling short or buying puts right now getting ready to cash in $millions.
Here's what happened:
They passed a totally new tax package around Christmas 2017 and the IRS had one week to create new tax withholding tables for January 2018 payroll.
The average taxed amount went down so the tables were adjusted to withhold less for everyone at every level based on people's exemptions.
But not everyone's actual taxes went down and some went up.
There are millions of people that simply had less taken out and owe it back after filing.
This is not a simple thing to figure out without doing your taxes a year after the fact.
If you have a spouse, you have to know what their W4 exemptions along with your own.
You have to anticipate what your deductions will be in a year and remove some the deductions that were taken out and compare that to the brand new standard deductions.
And if you get it wrong, you pay a penalty for under withholding.
What you have right now are millions of Americans that have smaller refunds than the prior year and have now adjusted their W4s to get smaller paychecks this year.
That's always the hard part about tax reform. There is no way to give even across the board tax cuts.
Many people get screwed.
Can you republicans then start worrying about the future economy? Stop making the largest single budget deficit month in history. And all to accomplish what? Still haven't hit 3% gdp growth. Lowered unemployment from 4.7% to 4%? That really accomplishes a lot. And 3/4 of the job growth is in California anyway. I am looking out for my fellow man. I have a comfortable life here in a blue state. I'm concerned about the future and I haven't seen anything accomplished to help that future.
X-Runner wrote:
This is not a simple thing to figure out without doing your taxes a year after the fact.
It's actually quite simple. Use the IRS calculator I linked above, overestimate your income, underestimate your deductions, and make adjustments based on the app's recommendations. Easy breezy, banana squeezy.
Many people get screwed.
Well, many people are lazy.
tax amateur wrote:
Luv2Run wrote:
You may also have to file quarterly next year with that level of underpayment.
There's no such thing as "filing" quarterly, you must be thinking of quarterly estimated payments. But he's already making payments with every paycheck, they're just not withholding enough.
The poster is correct. You can be required to pay additional taxes each quarter if you grossly underpay. That IRS requirement is not tied to a regular paycheck. It covers all sources of income, including interest income, investment income, social security income, retirement account withdrawals, and similar "income".
FourMoreYears! wrote:
Trump Tax Cuts worked great for me this year. Paid significantly less than I would have under the Obama Tax Hikes regime.
Liar.
Pay your fair share, comrade. My effective tax rate declined by .2%.
You may be SALTy over not having your state and local taxes subsidized anymore. What was your effective tax rate last year?