Post # 1
Hi ladies. Today sucks. I found out that my company was withholding my taxes wrong last year and now I owe $5000 dollars in back taxes. I know I should be happy I have a job and that some people don’t make enough money to have this kind of problem. But it still sucks. Now I don’t know how I am going to pay for my wedding in March.
I can’t seem to stop crying.
I know this isn’t really a question or anything thats easy to respond to, I just needed somewhere I could vent.
Thanks for listening.
Post # 3
That definitely sucks, but you fill out the withholding paperwork, not your company.
If they filed your paperwork incorrectly, or didn’t file it at all, they would be responsible, not you.
Post # 4
They did it for the wrong state. I travel all over for work. They admitted they are at fault and are at least paying the late fees, but still.
ETA: They also informed me this happened to several people and so they had complete turn over in their accounting and payroll staff last year because of issues like this.
Post # 5
They withheld the taxes using the wrong state? Example: You worked in State A but they withheld taxes for State B?
When you paid your taxes did you pay it to the state you were working in, or the state they withheld taxes for?
If you paid to the wrong state as well I’d think you’d be getting a refund from them, right?
Post # 6
Well they withheld taxes from state A that had a much lower tax rate than state B so I get a small refund and then still have to cover all the rest.
Post # 7
It really sucks to get hit with a bill like that, so it’s absolutely understandable that you’re upset. My only two bits of advice:
1. Talk to the IRS. They are more than willing to set up payment plans at very low or no interest so you don’t have to come up with $5k all at once. You still have to pay, but having time to do it makes a huge difference
2. Every 3 months or so, check your tax liability on the IRS website and the state department of (whoever collects the taxes in your state– here it’s Dept of Tax and Revenue) and make sure your paycheck stub is more or less in line with covering what you’ll be expected to have paid by the end of the year. Over the years, you’ll need to adjust your withholding many, many times: when your income goes way up or down, when you have kids or a stay-at-home spouse or elderly parents that you support in your home, when you have mortgage interest to write off, and so forth. And when your employer makes a mistake in your withholding. If you do a 10-minute checkup every 3 months, you’ll spare yourself any future unwanted surprises and you’ll also see when they are taking out too much tax, and you’ll be able to adjust accordingly!
Post # 8
@fishbone: Thanks so much for the advice. I will definitely start checking into a payment plan and start keeping tabs on my tax liability.
Post # 9
Wow, that really sucks. 5k is a lot of money. This same thing happened to me in my last job with the different states but luckily it was caught before it got that high.
Post # 10
@Future Mrs. W: that really sucks. I also got hit with an unexpected tax bill (fortunately only $2K) right after getting engaged. It’s so much harder to give the state that money when you’ve already earmarked it for something else!