Withholding Calculations

[Fijimn]

have you guys looked at your withholding income tax or adjusted your W-4. I had been meaning to since March and never got around to it. Anyway, we received our mid-year contingent bonus and I took the opportunity to look at it. Using the Irs.gov calculator and some rough estimates, looks like I have been shorting the federales and I’m in line to get a bill next your for close to 6 grand. I was pretty surprised. I’m usually plus or minus $500.

Then read a bunch of articles that the Tax tables for withholding have been severely underestimating fed taxes —some suggested for nefarious reasons.

Going to have a tax guy look at my math. But if you haven’t taken a look at your W-4 you may want to

 

[West Duval Nole]

I’m usually plus or minus $500.

That is what I aim for.

 

[Gonolz]

A lot of people who were happy about the bump in their paychecks earlier this year when the withholding rates changed for the new tax law are going to be upset when they get a big bill next April.

You can do a check up here:

https://www.irs.gov/individuals/irs-withholding-calculator

 

[runkpanole]

I added another kid, I’m golden.

 

[billanole]

I added another kid, I’m golden.

Welfare daddy. Nice work.

 

[Urban Cryer]

As a Floridian im glad other states can no longer use their state income taxes as a deduction.

 

[cgj0198]

Millions of dependents disappeared when IRS started requiring a SSN for all dependents.

 

[LesClaypool]

Millions of dependents disappeared when IRS started requiring a SSN for all dependents.

When was that not a thing?

 

[Formerly Rockymtnole]

As a Floridian im glad other states can no longer use their state income taxes as a deduction.

Why does that matter to you?

 

[DFSNOLE]

Why does that matter to you?

Yeah. Don't get that either.

 

[SeaPA]

When was that not a thing?

Right around the time that I passed the CPA exam, in the mid-late 80s

 

[cgj0198]

When was that not a thing?

before 1987

 

[seminole97]

Yeah. Don't get that either.

Probably doesn’t think the federales should subsidize state governments.

I am amused that people are only mad about their taxes if they actually see the bill. Captures the genius of withholding taxes quite neatly.

 

[dmm5157]

have you guys looked at your withholding income tax or adjusted your W-4. I had been meaning to since March and never got around to it. Anyway, we received our mid-year contingent bonus and I took the opportunity to look at it. Using the Irs.gov calculator and some rough estimates, looks like I have been shorting the federales and I’m in line to get a bill next your for close to 6 grand. I was pretty surprised. I’m usually plus or minus $500.

Then read a bunch of articles that the Tax tables for withholding have been severely underestimating fed taxes —some suggested for nefarious reasons.

Going to have a tax guy look at my math. But if you haven’t taken a look at your W-4 you may want to

Same. Having additional taken out now to offset the shortfall. I saw it coming a few months in, just didn't seem to add up.

 

[FSUdawg]

Probably doesn’t think the federales should subsidize state governments.

I am amused that people are only mad about their taxes if they actually see the bill. Captures the genius of withholding taxes quite neatly.

This.

Just because you get a refund of about $1000 doesn't mean the government paid you for the year. Instead it means you gave the government an interest free loan through the year, on top of them taking more than that out of your pay check.

 

[OrlandNole]

We have historically had a crazy amount of deductions and received a massive refund check this year, enough so that our accountant advised us to adjust our withholding. I'm hoping that the new withholding calculation, combined with the fact that neither of our kids are under 18 anymore, will make up for it.

 

[Urban Cryer]

Why does that matter to you?

I don’t like subsidizing state programs in other states, especially in places like NY and CA. We should all pay uncle sugar the same amount, what you do in your own states is up to the citizens of those states.

 

[billanole]

I don’t like subsidizing state programs in other states, especially in places like NY and CA. We should all pay uncle sugar the same amount, what you do in your own states is up to the citizens of those states.

How do you feel about states who pay more per capita to uncle suga than they receive vs. states who receive more than they pay?

 

[Urban Cryer]

How do you about states who pay more per capita to uncle suga than they receive vs. states who receive more than they pay?

In federal income taxes?

 

[SeaPA]

I don’t like subsidizing state programs in other states, especially in places like NY and CA. We should all pay uncle sugar the same amount, what you do in your own states is up to the citizens of those states.

Are you equally opposed to deduction for sales tax paid? (edit to add) property taxes?

 

[billanole]

In federal income taxes?

In general actually, but my limited understanding of the law cutting out deductions for state and local taxes will also kick the legs out from under the second home market for all but the big boys.
This poses big issues for states like Florida.

 

[seminole97]

In general actually, but my limited understanding of the law cutting out deductions for state and local taxes will also kick the legs out from under the second home market for all but the big boys.
This poses big issues for states like Florida.

Witness all my tears at the idea second homes might become less expensive.

 

[billanole]

Witness all my tears at the idea second homes might become less expensive.

True dat, but you understand how much of our economy this represents. Property sales, construction costs, fill it up with stuff sales (hopefully art and antiques from where I work), mortgage/bankers, yard and maintenance peeps, etc...
This is a big deal, not that I give a rip for the whole thing. Just another example of first world waste and distance from reality.

 

[Urban Cryer]

Are you equally opposed to deduction for sales tax paid? (edit to add) property taxes?

Yes