Taxes

[Willie99]

My deductions went from $42K in 2017 to $24K in 2018. With the elimination of the exemptions too, it's costing me $1200 in state and almost $4000 in Federal. First year in forever I owed something to both. You think people are complaining now, just wait til April. It's going to be a total shit show watching the White House try to defend it.

The overwhelming majority of people actually have a tax cut, even in a high tax state like Connecticut. The problem, if one exists, is in the fact that the cut in withholdings during the year > the actual tax cut. If the withholding tables never changed, everybody is happy this tax season.

Nothing the federal government did increases your state income taxes, sounds like you may have other issues.

 

[tanner12oz]

i went from getting back 150 last year to owing 400 this year with basically no changes...live in pa...make 50k a year, single, own a house. im gonna run the numbers through other software

 

[Jstack34]

i went from getting back 150 last year to owing 400 this year with basically no changes...live in pa...make 50k a year, single, own a house. im gonna run the numbers through other software

Are you married? If so, there probably isn't much benefit from owning the house anymore and then you lost your personal exemptions.

But did you look at your withholding? Possible your withholding was just less this year

 

[tanner12oz]

Nah I'm single..havent changed anything with my employer so assuming witholding is the same..this was through hr block..will try TurboTax tomorrow..compared to last year gross and tax paid pretty darn close. $500 swing seems kinda big for my poverty level of income

 

[Knightrofins]

Nah I'm single..havent changed anything with my employer so assuming witholding is the same..this was through hr block..will try TurboTax tomorrow..compared to last year gross and tax paid pretty darn close. $500 swing seems kinda big for my poverty level of income

50k a year is FAR from poverty

 

[Jstack34]

Nah I'm single..havent changed anything with my employer so assuming witholding is the same..this was through hr block..will try TurboTax tomorrow..compared to last year gross and tax paid pretty darn close. $500 swing seems kinda big for my poverty level of income

Ill wager your withholding went down. Compare your Box 2 from last year to this year.

When the new tax code went into effect, IRS updated withholding tables so you likely had less withheld since like Feb

 

[JustinCruise]

Checking back in


Got $10,000 back compared to $4000 last year


Thanks trump!

 

[tanner12oz]

Ill wager your withholding went down. Compare your Box 2 from last year to this year.

When the new tax code went into effect, IRS updated withholding tables so you likely had less withheld since like Feb

Looking at the boxes I think.your right. Guessing I have to tell my employer to start taking more? I think my paycheck went up like $14 after the tax change..doesnt appear like this turned out to be beneficial at all..or am I missing something? I dont want money back but I don't want to foot a $500 bill every year

 

[Knightrofins]

Looking at the boxes I think.your right. Guessing I have to tell my employer to start taking more? I think my paycheck went up like $14 after the tax change..doesnt appear like this turned out to be beneficial at all..or am I missing something? I dont want money back but I don't want to foot a $500 bill every year

Whatever you are claiming, drop your dependents by 1 number. That "should" do it

 

[Jstack34]

Looking at the boxes I think.your right. Guessing I have to tell my employer to start taking more? I think my paycheck went up like $14 after the tax change..doesnt appear like this turned out to be beneficial at all..or am I missing something? I dont want money back but I don't want to foot a $500 bill every year

You could lower the allowances claimed on your W-4 with your employer - so if you are claiming 2, change to 1 or if 1 change to 0.

Or you could keep claiming the same number of allowances but put in an amount in box 6 of your W-4 that you want to have w/h on top of your current withholding. So if you owed $500 this year, update your W-4 to claim the same amount of allowances (box 5) but then put like $20 in Line 6. This way, you will have an extra $20 taken out each paycheck

 

[tanner12oz]

Whatever you are claiming, drop your dependents by 1 number. That "should" do it

When I signed up I answered the questions accurately..who knows what number that made me I cant remember. This tax cut is feeling rather scammy..they are taking less but the total owed is still the same..what am I missing? This Is the second time I've owed the feds and I'm.35..other time I bought my house and sold a bunch of stock..

 

[snoop]

Do you have a few thousands sitting around doing nothing? You might to open an IRA before April 15, that should lower your tax bill, possibly even out last year tax bill. Does your employer offer 401k? If you want to avoid paying tax, trying to defer more of your income to retirement plan, 401k max contribution is $18k I think.

 

[tanner12oz]

Do you have a few thousands sitting around doing nothing? You might to open an IRA before April 15, that should lower your tax bill, possibly even out last year tax bill. Does your employer offer 401k? If you want to avoid paying tax, trying to defer more of your income to retirement plan, 401k max contribution is $18k I think.

Pretty sure this needs to be through employer but anything I can do through td Ameritrade?

 

[Knightrofins]

Post 51- you did NOTHING wrong. The IRS adjusted its withholding tables as well. You recevied more take home pay.

You said u sold stock. Did you have a gain?

Post 53- look at your W2. Is box 13 checked? If not, maybe you want to do an IRA as suggested in post 52?

 

[snoop]

Is your 401K at TD Ameritrade? If it is, you should be able to go in your retirement plan to adjust your bi-weekly contribution, you can do this anytime you want, max contribution is $19k this year.

You can open an IRA with your brokerage co. $4k Traditional IRA contribution for tax year 18’ should wipe out the balance that you owe them now.

 

[snoop]

You can put that deduction on your return now, just dont forget to put the $ in IRA before April 15, you want to go that route.

 

[tanner12oz]

Post 51- you did NOTHING wrong. The IRS adjusted its withholding tables as well. You recevied more take home pay.

You said u sold stock. Did you have a gain?

Post 53- look at your W2. Is box 13 checked? If not, maybe you want to do an IRA as suggested in post 52?

Its unchecked..i would prefer to do this through a 3rd party ( my employer aren't very proactive and resemble a nazi death camp)..I'm.liquid and could dump x amount into something to feel like I'm.actually benefitting vs writing a check for monies loaned to me from.the feds..i had around $800 in dividends and $1200 cap gains short term. Divi were close to last year..cap gains were new but not worth $500 swing..i hate fucking taxes

 

[tanner12oz]

Is your 401K at TD Ameritrade? If it is, you should be able to go in your retirement plan to adjust your bi-weekly contribution, you can do this anytime you want, max contribution is $19k this year.

You can open an IRA with your brokerage co. $4k Traditional IRA contribution for tax year 18’ should wipe out the balance that you owe them now.

No 401k currently but would rather have it controlled by me vs employer..have liquid cash and could 4k max it if need me..I was with scottrade then was bought out by td and honestly I don't know wtf is going on at this point

 

[snoop]

You can do IRA with TDAmeritrade, and most brokerage co will let you to trade from it too.

 

[Knightrofins]

Its unchecked..i would prefer to do this through a 3rd party ( my employer aren't very proactive and resemble a nazi death camp)..I'm.liquid and could dump x amount into something to feel like I'm.actually benefitting vs writing a check for monies loaned to me from.the feds..i had around $800 in dividends and $1200 cap gains short term. Divi were close to last year..cap gains were new but not worth $500 swing..i hate fucking taxes

Those short term capital gains were either taxed at 12 or 22%.

If you are liquid, put $$ into an IRA. You can put a max up to $5,500 and you will save the amount you contribute times your tax rate. If you max it out (and in 12% bracket), you will recevie $660 and will NOT owe.

You can open one through fidelity, ameritrade, vanguard, etc. U just have to call them and there is probably a local office.

Truth be told, if you are in the 12% bracket, then you are probably better off doing a ROTH IRA and just pay the IRS what you owe