I know no one wants to talk about taxes but I have a question and see if anyone else seen the same thing. Nothing changed for me from 2017-2020 job wise or no big pay increase. Always got money back both state and fed. This year on my 2020 taxes now I owe money on both. WTF? Looks like they took out less taxes compared to years past. Anyone do there 2020 taxes and see the same thing? We are not paying taxes on the stimulus money so what’s up Biden?
Did you take unemployment in 2020? that is taxed. When my wife applied she marked she wanted 15% taken out and nothing was. so ya we are paying in this year when we normally do not.
You better get used to it
What Joe said. Paid in a lot even while taking taxes out of unemployment.
No unemployment for me and I pay in as well.
Well timed post, this morning I noticed that my payments to both the Fed and State were pulled from my bank account. I’ve been steadily increasing the additional amount I have withheld each pay period, I’m now up to $400 every 2 weeks to try and get closer to zero-out this time next year.
HRG
To my knowledge, the general tax code and system is still the same for filing now as it was the past 4 years because its based on 2020. So even with a new administration in office, very little has changed. Next year you may see new changes though.
I generally receive a refund because I have a crap load with held all year. I received my state refund weeks ago already. Federal one has said “pending” for over a month now. This is by far the longest it has ever taken. The IRS is sure quick to send out stimulus when Congress approves it but they take weeks or more to send out a federal tax refund?
Bring it to a CPA, or just pull your previous filings and look for the differences. I was pretty proud we only had to pay in $12 this year, maybe next year we will get the perfect score ($0)
I know no one wants to talk about taxes but I have a question and see if anyone else seen the same thing. Nothing changed for me from 2017-2020 job wise or no big pay increase. Always got money back both state and fed. This year on my 2020 taxes now I owe money on both. WTF? Looks like they took out less taxes compared to years past. Anyone do there 2020 taxes and see the same thing? We are not paying taxes on the stimulus money so what’s up Biden?
We got pretty much the same thing, we usually get money back from both and this year we owe the state of MN. We do have CPA do the taxes and he just sent them this morning for review. If get an answer from him I will let you know. No unemployment on our end of things.
Nope, and with the Trump increased standard deduction to $24,000 I just take the standard deduction, My taxes are pretty simple. I compared 2019 to 2020 side by side on Turbo tax and we made the same amount, just paid less in taxes last year so we now have to cover that cost and pay in. I did notice a $7000 tab I am guessing is the stimulus money I received because it asked if you got both checks but it is not taxed. Must be the tax breaks that were passed.
Did you take unemployment in 2020? that is taxed. When my wife applied she marked she wanted 15% taken out and nothing was. so ya we are paying in this year when we normally do not.
Bigcrappie,
Sorry to hear that. I have done my own taxes since HS. I use the H and R Block software. I didn’t notice any changes this year.
I went from getting about $1k back to paying in $1K. Which can be explained from my wife’s added income and no taxes withheld from her unemployment.
All stimulus money should not have been taxed.
I believe the last stimulus bill forgave taxes on last year’s unemployment. Might want to check on that. I could be wrong. Just what I was told by a friend.
You better get used to it
Yuppers. 
I believe the last stimulus bill forgave taxes on last year’s unemployment. Might want to check on that. I could be wrong. Just what I was told by a friend.
I’ll check on that. hopefully it will be in a software update before taxes are due.
Remember they pushed back the tax due date to sometime in May.
Its possible your employer just didnt take out enough. That happened to me a couple years back. 4 months in all employees got an email stating they were not withholding enough and advised us to alter our W4 to have additional taken out to avoid having to pay in. I did that, still had to pay in and we have paid in to Federal ever since.
The new W4 is super dumb to fill out. Its not like the old enter your dependents and enter additional amount you want withheld and boom, you’re done.
Looks like up to $10,200 of unemployment benefits in 2020 will be tax exempt. $20,400 for joint returns. unless of course your household AGI was over $150,000. (I suppose 2020 unemployment didn’t affect those people??)
If you already filed, the IRS will start to send refunds in May.
This is only of federal taxes. MN still taxes the unemployment benefit in 2020.
I know no one wants to talk about taxes but I have a question and see if anyone else seen the same thing. Nothing changed for me from 2017-2020 job wise or no big pay increase. Always got money back both state and fed. This year on my 2020 taxes now I owe money on both. WTF? Looks like they took out less taxes compared to years past. Anyone do there 2020 taxes and see the same thing? We are not paying taxes on the stimulus money so what’s up Biden?
Easiest way to find out what changed is to pull up your previous years tax return and compare your net income, and state a federal taxes to see if they are the same. If those are the same you can check your deductions to see if something changed. I have seen many people make the mistake when there business’s update there w-4 forms and the individual adds a dependent on accident which decreases there tax with holding.
Federal does not tax unemployment but your state might as here in Wisconsin state taxes unemployment
Look and see if your withholding amount or number of exemptions claimed changed. It is likely that tax withholding table adjustments for lower tax rates under Trump’s tax cuts. If this was the case, you should have seen an increase in your paychecks to offset the lower refund.
Like others mentioned, no change in the tax rates in 2020 from prior years.
Federal does not tax unemployment but your state might as here in Wisconsin state taxes unemployment
depends on the amount. https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation
HRG
The federal tax brackets only had a marginal change from 2019 to 2020 due to how they index for inflation that actually would have produced a “slight” benefit for the same taxable income (unless the deductions have changed). Cant vouch for state changes. It kinda sounds more like it could be an employer tax withholding issue. You may want to review your W4 withholdings to see if anything changed there. Were you seeing an increase in take home pay in 2020 for the same salary? Other suspects could be changes in medical insurance, 401k deductions or any other tax deferred withholding which would affect your taxable income. Any increase in 1099/capital gains income? Unemployment benefits? I didn’t think the Covid payments were taxable.
WTF! Just got a call from our CPA. Our taxes for 2020 are exactly the opposite of what you describe. We normally pay in but this tear both are paying us. Gubernment at its finest…
I bet the average Joe has no idea the amount of taxes they pay. We are VERY fortunate to make good money, but our total taxes with fed & state was over 50K. Dog gone it, that’s a lot!!
I think the payroll withholding should be abolished, so everyone just has to send a check in once a quarter, that would get the population up in arms about the taxes we pay and maybe we could get our reps to quit “P”ing away $$$$$$$
Taxes are always a fun adventure. What would Biden have to do with 2020 taxes though?
Taxes are always a fun adventure. What would Biden have to do with 2020 taxes though?
That would be zero.
I think the payroll withholding should be abolished, so everyone just has to send a check in once a quarter, that would get the population up in arms about the taxes we pay and maybe we could get our reps to quit “P”ing away $$$$$$$
I agree 100% with that!
Riddle me this. Tax lady just gave me a call. With my wife’s severance package, and her unemployment from losing her job due to covid (corporate resetting, they posted her job this spring for way less pay/benefits) I have two options. We take all that income in this year’s income, and we pay $300 to Federal, $900 state. Or we spread it out 3 years, including this year and we will receive 2100 refund federal this year, and still pay in the 900 state. What to do? Keep in mind I did receive a sizable increase in wage this year with increases the next two years also. We are very close to going into the next tax bracket.
I think the payroll withholding should be abolished, so everyone just has to send a check in once a quarter, that would get the population up in arms about the taxes we pay and maybe we could get our reps to quit “P”ing away $$$$$$$
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No payroll withholding at all. No State Dept of Revenue, no IRS.
If you make a buck an hour and work 40 hours you get a check for $40.
User tax –
Everything purchased is taxed. Everything. That way everybody pays taxes. No way to cheat. Illegals immigrants pay taxes, tourists pay taxes, etc.
They can decide the level of taxes and hit luxury items a bit higher so when someone buys a G-10 there going to get hit hard, a gallon of milk not so much.
The new W4 is super dumb to fill out. Its not like the old enter your dependents and enter additional amount you want withheld and boom, you’re done.
Agreed on that. We were pretty much even for 2019 but have to pay in a few grand for 2020. I went to update my W4, but holy schnikes, it’s not what I am used to.
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