I thought you were trying to say his amount due was increased due to Trump's tax change?
Sorry if I misunderstood.
Been a long day and still plugging away in the office.
Tax time
- Thread starter beanerhawk
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I thought you were trying to say his amount due was increased due to Trump's tax change?
Sorry if I misunderstood.
Been a long day and still plugging away in the office.
The new version causes a LOT of confusion; as HawkMachine said, both spouses need to fill one out and make sure they know what the other did.
Not at all, just that the tax cuts that were due to sunset have all do just that.
Who knows what will happen, many times some things get extended, even made permanent.
Lol. That is exactly the marketing material that was used to pass the thing in the first place.
We got d!cked, there's no shame in admitting it.
Similar for us. Wife is self employed, so we owe something every year. We don't do quarterly payments but park a % of all her income in a money market account. Other than one year when interest rates were in the gutter, it pays considerably more than the penalty and interest to the IRS.
Tell me then how a single individual with a proper w-4 withheld 24k last year only withheld 14k this year and owes 10k same employer. what accounts for that change. Also the new W4 sucks especially for individuals with multiple jobs.
Fyi, I still work with 3 businesses that still do the full calculations. Old school, no quickbooks or other payroll program. Between the 3 close to 100 employees.
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Edit: in response to DooBi's original post.
Did you do a rollover from a 401k to an IRA or something like that?
I did two this year from old employee sponsored plans into a Roth brokerage account and had a significant amount due. I offset it elsewhere, though.
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You realize the country is still operating under the Trump tax cuts from 2017 that are set to expire in 2025 right?
Well I mean yeah. Why would we want to pay less in taxes for a few years when we could pay more the whole time? Makes sense.
I haven't seen my (no pics) wife's W-2 yet, but my federal withholding was about $57K this year, plus another $16K in FICA that I'll probably never see. Hoping I wind up even this year, but we'll see. It was not a normal year.
Huh, didn't know Mrs. QC reported that income.
I filled electronically last Wednesday night, and yesterday my checking account was showing receipt of my federal refund as a pending transaction.
Are you in Iowa? The last few times I received a refund from them it always took at least six weeks supposedly because of some anti-fraud program they had adopted.
Your anonymous concern of another anonymous poster was unwarranted to begin with but thanks anyway. Cheers to ya.
Not going to be a good tax year for us. Going to owe over $100k. I knew I was taking a risk quitting my job around Thanksgiving. I was hopeful my company would pay out my deferred comp after Jan 1. They paid me out on Dec 29th. Totally effed for 2023. My own fault, but my company screwed me over so bad, I couldn’t justify working another day for them.
Im holding off putting my taxes together for out accountant. It’s hard to get the motivation to do it when I know how brutal it’s going to be.
Im holding off putting my taxes together for out accountant. It’s hard to get the motivation to do it when I know how brutal it’s going to be.
Yes. It’s an unfortunate problem to make less money. So I get to celebrate a lower tax rate. Yay me.But 2024 taxes will be good to you right?
It was either pay in 2023 or pay in 2024. The fact that it happened in 2023 is an additional 2%. That’s an over $8k out of pocket swing if the company would have cut my check a couple days later. So yeah, that sucks.
Sorry if I wasn’t clear. I’m not necessarily complaining about having to pay in an extra $100k. I would have had to pay that anyway, eventually. I already had that amount withheld from the deferred comp payout. It’s an extra $8k that it happened in 2023 rather than 2024. I’m going to earn significantly less in 24 than 23 with my job change.
Everybody here on HORT is in the 37% tax bracket so it didn't matter
Can I ask what the change is and how you made the decision? I'm contemplating a move that would result in significantly less compensation.
Sure. Long story.
I’ve been at the same company for 15 years. Worked my way up, through years of sales to where I built my own division, eventually running the division and had 15 employees under me. 2022 my team brought in $50M. 2023 in a market downturn brought in $40M. Company decided everyone, not just my team is overpaid and started having layoffs and then comp changes. In 2023, my income dropped by over 60% after May as they decided to no longer pay out bonuses. They increased our goals to make hitting bonus impossible. I was making less in 2023 than I did in my 2nd year with the company. I’ve been on a pretty steady rise in comp and title over the years.
The Wednesday before Thanksgiving I was advised that I’d have to layoff 3 from my team. I wasn’t given the option of picking who. They chose to terminate an excellent employee who was a crushing blow to me and my team. She was a loyal, hard worker, who internal team members loved as did her clients. She was 8 months away from retirement. The very next day, we then rolled out 40% - 70% compensation decreases to the remaining 12 people. After sleeping on it, I resigned that morning.
Decided life’s too short. Had been working 10-12 hour days. Tons of travel to the east coast. My sister was nearing her final days (went into hospice on 12/2) and I wanted to spend time with her. So I took 60 days off.
Landed a new job, which for now, is base salary only. I’m starting over in the same industry, but back to selling and building a customer base from the ground up.
I was miserable in my job over the last 3 years. Not necessarily the industry and what I do, but worked for a soulless company and absolutely god awful leadership.
I’m the happiest I’ve been in a long time. Being highly compensated doesn’t always translate to happiness.
I’ve had similar, decent returns from the Fed for several years. The only real change this year is that I owe Iowa a small amount instead of receiving a small amount. I’m good with it.
That sucks. I'm glad you landed on your feet.
I'm in a little different position. My compensation and the business is still going great, but I'm getting worn out after almost 30 years in the industry. Considering a move to the public sector, which would require a 50% (or more) reduction in income.
A lot of people would love to have the opportunity to tell their employer to GFY. I had that day and it was glorious. Two additional from my team have resigned in the last 2 weeks. My former company will find out soon enough if we were worth the risk they took or not.
You might want to reconsider this year; the penalty rate right now is the highest it has been in close to 2 decades. Note, I had a lot of clients over the last 5 or so years who have made the same decision as you, and I certainly understood the reasoning - but with the penalty rate at a whopping 8% that's a little tougher to outperform than when it was 3%
Good to know, thank you! I missed that news. We definitely aren't getting 8%. It looks like the change was effective for Q4 of last year, so the lower rate should apply for Q1-Q3?
The 2210 penalty for underpayment of estimated tax is based on the IRS short-term interest rate; they update interest rates quarterly. They haven't yet issued the bulletin with Q2 2024 but will likely do so in the next week or 2.
Yes, the 8% penalty rate went into effect in Q4 last year.
Just finished up my 22nd year using Turbo Tax. I finally nailed my federal withholding and only owe $78 this year! My first year crossing over from Civil Service back to Defense Contractor, I owed $4,700.
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