Tax time
- Thread starter beanerhawk
- Start date
No they have already quit early and all income is capital gains at the 20% levels.
Well, if that's all they had to say after 15 years, you def made the right move.
Obviously, I'm not rich. My wife and I make good money, but what could I be doing wrong to owe 5K in Federal taxes? We both claim married and 0 on our W4. We just had to update our W4 a month or so ago and we are now having an additional withholding of $50 a check being taken out. My son is in college, so after entering his 1098-T I got it down to owing $2,400. Any suggestions? Should we update our W4 to single 0? Tax time really pisses me off.
Not sure what you are doing. It's just my wife and I now but we are getting $8500 back from federal.
Nobody can tell you without knowing your situation and what changes you'll have this year. But if you owe $2400 on your return and you both are now having an extra $50 in withholdings (assuming you both get paid every other week) then that should get you close to where you want to be on your 2024 return. This also assumes that your son will still be in college and you can take the AOTC again.
My wife has hardly anything taken out so I just adjust mine as needed a couple times a year. I use a dummy Turbo tax return from the previous year to predict it. It will be off due to tax year changes but not a significant amount. The reason I do it throughout the year is because I frontload an HSA for the first few months, so the withholdings will change when that is done.
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Correct. I’m much happier in my new job, less pay, but Im trying to live past 60. My last position was great, until it wasn’t. I’m not going to let my job kill me.
When your employer reduces your federal withholding by half, a reasonable person asks questions,.. Accuracy of W4 doesn't matter,.. Responsibility for paying taxes lies with the taxpayer,.. That's why they're referred to as taxpayers.
If you both ONLY had W-2's and you had an amount due of $5k, I can about guarantee you didn't fill out the new W-4's accurately.
They have changed drastically over the years.
For example, you mentioned you claim "married and 0". Well, there is no "0" any more. No such thing as exemptions now.
You BOTH really need to fill out NEW W-4's and take the extra time to fill them out correctly. They are a hassle but follow the directions.
If you do them correctly, you will get much closer to break even. Now if you have a bunch of investment income, etc. that's a different story.
5000 is a huge amount. Biggest culprits still claiming full child tax credit, not accounting for other income, interest dividends, cap gains business income, gambling ect. Had one guy say why do I owe 4000 this year, it’s the Samenas last year. I replied, you didn’t have 20k in interest Last year. The interest 1099s have really jumped this year.
Going to wait to do them. My individual investment income was very good last year, bunch of Amazon restricted stock that vested, and I have holdings in a Fidelity Semiconductor mutual fund that boomed since 1/4 of the weighting is in Nvidia. Will definitely owe, but a good problem to have I guess.
Yes we just have W2's. We are both filling out new state and federal W4's. Any suggestions if we want the most taken out to get close to breaking even next year? I'm assuming we also should be having additional money taken out of each check? Regardless, I appreciate your opinion.
Ya, no big interest, dividends, cap gains, business income or anything like that. Just basic W2's. I thought I was always aggressive on my W4's but clearly I'm doing something wrong.
Laughing out of my personal pain.....This year my wife and I paid 50k just in federal income tax. Fortunately, I had the withholding about right and got about 400 back. I know/csb. But sucks bad.
Just check the box Married Filing Jointly and then pay close attention to Step 2. Figure out which option applies to you and your wife and follow the instructions.
As mentioned already before, it only works if you BOTH do this.
Once your ER makes the change, always check your stub for comparison.
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