Taxes

posted 7 days ago in The Lounge
Post # 31
Member
2430 posts
Buzzing bee
  • Wedding: October 2016

We owe every year.  Middle class. Own a home. Have kids. Claim 0. Yeah. It sucks. And people want to vote to INCREASE my taxes. Last year I had an extra $75 a paycheck taken out. That’s an extra $1950 a year. We’ll see how much I owe this year.

Post # 32
Member
8620 posts
Bumble Beekeeper

JiminyCricket :  that’s really lucky that you live in a HCOL area and the SALT limitation didn’t impact you. That screwed us for sure. We’re in Massachusetts so between state income tax and property taxes the $10k cap is joke. 

Post # 33
Member
8620 posts
Bumble Beekeeper

jannigirl :  sorry I’m one of those people. The reason being is that taxes might go up, but if you eliminate health care premiums/deductibles and make education affordable you’ll overall be saving a boatload of money. We have a lot of friends in Canada and they are straight up baffled by what we spend on healthcare and our plan is actually very cheap comparatively because my husband is a government employee.

Post # 34
Member
13842 posts
Honey Beekeeper
  • Wedding: November 1999

LilliV :  I know. After it all went down, Virginia did some recalculation and legislative changes that resulted in every taxpayer getting an additional refund or credit towards what they owe. We’ve been lucky for sure!

Post # 36
Hostess
3957 posts
Honey bee
  • Wedding: November 2016

JiminyCricket :  Same, our mortgage interest pushed us to itemize this year in our HCOL city. 

OP, I just have to say that sucks and I’m sorry 🙁 we were hit really badly last year after the 2018 tax changes, and I changed my withholding to the single rate so that we wouldn’t be stuck with a huge bill.  We have the largest return I’ve ever had this year because I withheld way too much, so I’m sure there is a sweet spot in there. 

Post # 37
Member
47 posts
Newbee

Same happened to us this year. We always get about 2k back. But this year we owe over 3k! We both claim 0, and the tax preparer said we did not pay enough during the year. I double checked with turbo tax, to see if there was any difference filing jointly or separately, and there was no difference. 

Post # 38
Member
5190 posts
Bee Keeper
  • Wedding: January 2017

Went to h&r once, years ago and will NEVER go back. It was the first and only year I ever owed a huge amount of money and they told me they couldn’t help me when I went back to ask why the hell I had to pay back so much. I now have a great accountant that takes care of us, has for the past 11 years and I’ve never owed since. Get a second opinion and stay away from h&r.

Post # 39
Member
152 posts
Blushing bee

Have you tried increasing your 401k contributions? That is the only thing I found helped in reducing the taxes since Trump changed the tax law. You reduce your income on paper doing that. We live in a high property tax state also. The only thing bad about increasing your 401k, is you look at your paycheck and say “that’s it?”. You have to live on less to decrease your taxes. Crazy. When I hear various candidates talking about this program or that and increasing taxes to pay for it, I think you can’t squeeze the middle class any more. People can’t keep up.

Post # 40
Member
760 posts
Busy bee

Sorry to hear this, bee. I was also shocked to see that my husband and I owe $4k this year. It’s so insane because we’re both at 0, and he was filing single for both federal and state (CA), while I was married for federal and single for state. 

I think I read online that if you claim married on your tax form then they assume you’re the sole earner and the breadwinner. Not sure how true that is. Regardless, I changed my status to single and I’m having an additional $100 taken out of my paycheck.

We have no kids and no property, and our combined income is $200-$250k range. So we get taxed a lot!

Post # 41
Member
7884 posts
Bumble Beekeeper
  • Wedding: October 2010

Not much to say for your current situation. But for next year- not sure if this applies to you, but if you are borderline for a tax bracket, you can increase your before tax contributions- HSA accounts, 401k, 529 plans, etc. Our tax accountant recommended this and we ended up making out so much better. 

Post # 42
Member
691 posts
Busy bee
  • Wedding: August 2019

LilliV :  Right? I get so pissy when people panic and say we can’t do X or Y because we’re already so over-taxed. Like, literally the reason we’re over-taxed is because we, the middle class, are subsidizing the very upper-class who do not pay anything resembling their fair share. I think people also forget that if healthcare or college or subsidized daycare were a thing, you don’t pay for it twice. I’d much rather pay an extra $300/month in taxes and save the $100-$500 on health insurance I’m paying or daycare/college fund costs I’d be putting aside when we do have kids. Yes, taxes would increase, but a large chunk of monthly income would be freed up as well so at worst it’d be a wash, at best it’d be a savings. 

 

/vent

 

OP, definitely get hooked up with a CPA who works on taxes and can go over everything with a fine tooth comb to ensure this doesn’t happen again next year. 

Post # 43
Member
7500 posts
Bumble Beekeeper
  • Wedding: June 2013

Mary Ellen1 :  we maxed our 401k out this year which was a significant amount more than we put in last year and still ended up owing more on taxes 🤷‍♀️ I guess everyone’s situations vary so much that the same thing won’t work for everyone.

ETA: I just realized once I take into account or adjusted gross income we’re right at the edge of a bracket. That makes sense I guess with owing more this year over last year.

Post # 44
Member
1099 posts
Bumble bee

LilliV :  the only thing off is this new tax break was anything but a tax break for the major of Americans.

OP- we were in the same boat. I have never owed taxes. Last year was the first year I didn’t have a negative tax bracket with two kids, mortgage interest and property tax. I hope we go back to the old system with the next president. This one is a quack 

Post # 45
Member
1354 posts
Bumble bee

Sounds like your employer screwed up and didn’t withold enough during the year. 

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