I agree talk with an accountant there are deductions to be had you may need to file an amended return.
FEDERAL TAXES. Why do I owe big bucks?
- Thread starter ARCOgraphite
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Originally Posted by Quattro Pete
Originally Posted by ARCOgraphite
Anyone else in the same boat?
Yup. We take no allowances and still owe a ton every year because of AMT.
You may need to request extra withholdings on your W2 form to avoid penalties.
^^^^^^^^^^^
THIS...... All day everyday.
AMT sucks donkey nuts... My lady and I are in the same exact circumstance. "We" are rich evidently
Originally Posted by ARCOgraphite
Anyone else in the same boat?
Yup. We take no allowances and still owe a ton every year because of AMT.
You may need to request extra withholdings on your W2 form to avoid penalties.
^^^^^^^^^^^
THIS...... All day everyday.
AMT sucks donkey nuts... My lady and I are in the same exact circumstance. "We" are rich evidently
If you want to see the real effect of the new tax laws, also run your 2018 earnings, etc through the 2017 tax forms. That's the best apples-to-apples comparison.
PS - I'm glad this thread got unlocked. Some of these things are important to have discussions about.
PS - I'm glad this thread got unlocked. Some of these things are important to have discussions about.
Originally Posted by ZeeOSix
If you want to see the real effect of the new tax laws, also run your 2018 earnings, etc through the 2017 tax forms. That's the best apples-to-apples comparison.
This! TurboTax has their TaxCaster app that will do it for you and show it side by side.
I've told a few people who were more than a little upset about their refunds this year to use that app, they understood afterword.
If you want to see the real effect of the new tax laws, also run your 2018 earnings, etc through the 2017 tax forms. That's the best apples-to-apples comparison.
This! TurboTax has their TaxCaster app that will do it for you and show it side by side.
I've told a few people who were more than a little upset about their refunds this year to use that app, they understood afterword.
I've heard a few horror stories this year. I didn't feel it with 4 kids, married, filling jointly, sole earner.. with respect to income tax that is.
Originally Posted by ARCOgraphite
Why have been paying over three grand the past few years!.....
As others have noted, in addition to withholding if you've been cutting a check for 3 grand every year, you haven't had enough withheld from your income. In addition to taking 0 allowances you can request an extra amount be taken out with each check.
Beyond that as also noted, you can start paying quarterly estimated taxes. Really if you've been writing that big a check at tax time, you should have started the quarterly estimated tax payments. If you haven't been hit with a penalty to this point, pretty lucky I'd think. Anything over a grand owed, unless you had withholding increased, starting quarterly estimated taxes at same time a good strategy ime.
And if there is a penalty owed the IRS will figure it for you and send you the bill. There's been years I thought I might get one, but didn't. However, I always started estimated tax payments with the check for due taxes.
As for your contemplation of a "Ruby Ridge" strategy, just a hunch says not a good idea. On a somewhat related note, had a Doctor/MD locally at an urgent care walk-in joint. Decided he wasn't going to pay taxes claiming he was a "sovereign citizen", aka whack job. Got splashed all over the newspaper when they came to get him. I was actually treated by the guy a couple/few times.
As Joe Black from the movie Meet Joe Black found out and used, two things sure....Death and Taxes.
Why have been paying over three grand the past few years!.....
As others have noted, in addition to withholding if you've been cutting a check for 3 grand every year, you haven't had enough withheld from your income. In addition to taking 0 allowances you can request an extra amount be taken out with each check.
Beyond that as also noted, you can start paying quarterly estimated taxes. Really if you've been writing that big a check at tax time, you should have started the quarterly estimated tax payments. If you haven't been hit with a penalty to this point, pretty lucky I'd think. Anything over a grand owed, unless you had withholding increased, starting quarterly estimated taxes at same time a good strategy ime.
And if there is a penalty owed the IRS will figure it for you and send you the bill. There's been years I thought I might get one, but didn't. However, I always started estimated tax payments with the check for due taxes.
As for your contemplation of a "Ruby Ridge" strategy, just a hunch says not a good idea. On a somewhat related note, had a Doctor/MD locally at an urgent care walk-in joint. Decided he wasn't going to pay taxes claiming he was a "sovereign citizen", aka whack job. Got splashed all over the newspaper when they came to get him. I was actually treated by the guy a couple/few times.
As Joe Black from the movie Meet Joe Black found out and used, two things sure....Death and Taxes.
Or end up like Willie Nelson or Wesley Snipes in prison for not paying your taxes.
Bubba will ensure your prison stay is very 'wonderful"....
Bubba will ensure your prison stay is very 'wonderful"....
I was pleasantly surprised this year. I have a family of 4 with a gross income in the low 100's. I experienced $100 per month less pulled from my check and about $300 more back on my federal return. Used the standard $24k deduction and had some 401k contribution. Many people are forgetting that less is being withheld from their check when looking at the return. If you have to pay just consider it a low cost loan from the feds!
People need to max out 401K or 403B.
Every year I end up paying due to capital gains and dividends.
Every year I end up paying due to capital gains and dividends.
Originally Posted by Mr Nice
People need to max out 401K or 403B.
Every year I end up paying due to capital gains and dividends.
There's a point there somewhere. That $3000 that Arco is paying to Uncle Sam should be instead be going into his tax deferred accounts. Now it's not that simple and won't erase his tax obligation at tax time so that is where a good accountant comes into play.
People need to max out 401K or 403B.
Every year I end up paying due to capital gains and dividends.
There's a point there somewhere. That $3000 that Arco is paying to Uncle Sam should be instead be going into his tax deferred accounts. Now it's not that simple and won't erase his tax obligation at tax time so that is where a good accountant comes into play.
Originally Posted by Sayjac
ARCOgraphite said:
Quote
...As far as estimated vs. payroll with-holding to pay for income outside your job-it's been explained to me that the IRS doesn't really care HOW you pay your taxes-they just care about getting them and getting them on time.
No doubt. I've used a combination of both, however using quarterly estimated taxes rather than continuously changing withholding alone, just worked best for me as preference.
In any case, it appears the OP needs to do one or the other or a combination to avoid a possible penalty. And if he chooses payroll take out option alone, he'll need to calculate extra amount taken out based on months left this year.
...As far as estimated vs. payroll with-holding to pay for income outside your job-it's been explained to me that the IRS doesn't really care HOW you pay your taxes-they just care about getting them and getting them on time.
No doubt. I've used a combination of both, however using quarterly estimated taxes rather than continuously changing withholding alone, just worked best for me as preference.
In any case, it appears the OP needs to do one or the other or a combination to avoid a possible penalty. And if he chooses payroll take out option alone, he'll need to calculate extra amount taken out based on months left this year.
Originally Posted by PimTac
Originally Posted by Mr Nice
People need to max out 401K or 403B.
Every year I end up paying due to capital gains and dividends.
There's a point there somewhere. That $3000 that Arco is paying to Uncle Sam should be instead be going into his tax deferred accounts. Now it's not that simple and won't erase his tax obligation at tax time so that is where a good accountant comes into play.
401K IRA ? I was putting in 12% and the wife 18% into the 401K. That's not insignificant. I Used to be able to erase the tax due with makeup contributions - but there is an income cap on THAT now and it was to no benefit on a side calculation. In the past we'd each put in near MAX makeup allowed.
That was a bit of a sneaky phaseout. That hurt the most.
Still seeing I have straight forward income and no business income and significant dividend income the table should be correct at Witholding M1 and it was way wrong at M0! They do the withholding calcs. Get it right!
Originally Posted by Mr Nice
People need to max out 401K or 403B.
Every year I end up paying due to capital gains and dividends.
There's a point there somewhere. That $3000 that Arco is paying to Uncle Sam should be instead be going into his tax deferred accounts. Now it's not that simple and won't erase his tax obligation at tax time so that is where a good accountant comes into play.
401K IRA ? I was putting in 12% and the wife 18% into the 401K. That's not insignificant. I Used to be able to erase the tax due with makeup contributions - but there is an income cap on THAT now and it was to no benefit on a side calculation. In the past we'd each put in near MAX makeup allowed.
That was a bit of a sneaky phaseout. That hurt the most.
Still seeing I have straight forward income and no business income and significant dividend income the table should be correct at Witholding M1 and it was way wrong at M0! They do the withholding calcs. Get it right!
BTW Im retired now Income next year est at under $2000.
NO Job No W4.
Originally Posted by ZeeOSix
If you want to see the real effect of the new tax laws, also run your 2018 earnings, etc through the 2017 tax forms. That's the best apples-to-apples comparison.
PS - I'm glad this thread got unlocked. Some of these things are important to have discussions about.
I agree with your entire post and doing this is abnormal.
If you want to see the real effect of the new tax laws, also run your 2018 earnings, etc through the 2017 tax forms. That's the best apples-to-apples comparison.
PS - I'm glad this thread got unlocked. Some of these things are important to have discussions about.
I agree with your entire post and doing this is abnormal.
I retired at 58 from a large defense contractor after 30 years when they offered an enhanced retirement.
Income around 100k and I am having to pay $9k and $5500 of my Social security is being taxed too (I am 65 now). I do joint return with wife and have 2 disabled adult kid's at home.
I did hear on news from IRS press release that most people are getting smaller refunds.
Income around 100k and I am having to pay $9k and $5500 of my Social security is being taxed too (I am 65 now). I do joint return with wife and have 2 disabled adult kid's at home.
I did hear on news from IRS press release that most people are getting smaller refunds.
Originally Posted by PimTac
Smaller refunds are better. The idea is to break even or be close.
+1
Why would you loan your money to the government all year with no interest?
Smaller refunds are better. The idea is to break even or be close.
+1
Why would you loan your money to the government all year with no interest?
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