2020 Taxes

BigWerm wrote:

<div class=”d4p-bbt-quote-title”>mnice wrote:</div>
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!

Keep this in mind… Medicare is part of those payroll taxes. The vast majority of workers in the US have no retirement healthcare benefit. Most people get their health insurance thru their employer who pays the majority of the premiums. Once you retire you’d have nothing and would be in a much higher risk group. Not sure what that would look like if you let Medicare die on the vine. You may find out you’d rather pay the payroll taxes today than high(er) risk insurance premiums on your own dime tomorrow.

Eelpoutguy wrote:

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.

I’ll give, what’s a G-10?

HRG

Anonymous wrote:

ally pa

The number of interest is not what your refund or payment is, it is the total income tax you pay. Compare this year’s filing with last year’s, see what the tax paid is on each. If you paid more tax for 2020 than 2019 it means your tax burden increased. This may well result from increased income, asset sales, etc. The refund/payment amount has as much to do with your withholding as it does with your tax bill.

Hot Runr Guy wrote:

<div class=”d4p-bbt-quote-title”>Eelpoutguy wrote:</div>
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.

I’ll give, what’s a G-10?

HRG

I think he is reffering to a private jet.

OP, do you have a working spouse? That’s where we get screwed. My income alone and my wife’s income alone are in one tax bracket, but if you add our incomes together we are in a higher bracket. Problem is, the government doesn’t make this simple realization so during tax season we ALWAYS have to pay in. PITA.

walleyevision wrote:

OP, do you have a working spouse? That’s where we get screwed. My income alone and my wife’s income alone are in one tax bracket, but if you add our incomes together we are in a higher bracket. Problem is, the government doesn’t make this simple realization so during tax season we ALWAYS have to pay in. PITA.

Simple solution – manually withhold more taxes from your paychecks via updating your W4

walleyevision wrote:

OP, do you have a working spouse? That’s where we get screwed. My income alone and my wife’s income alone are in one tax bracket, but if you add our incomes together we are in a higher bracket. Problem is, the government doesn’t make this simple realization so during tax season we ALWAYS have to pay in. PITA.

Quit your job, go to work at McDonalds. It will help (I assume) your tax situation.

Why should someone have to have additional withholding taken out of they have their W-4’s correctly filled out. I know my wife and I have to do this and still end up paying through our ass. Max withholdings taking out. If someone can figure this out let me know because it pisses me off. Meanwhile everyone else I work with are bragging about how much money they are getting back. Hell I just want it to zero out. 34% of our 2020 income went to state and federal taxes. I know something changed a couple of years ago with the Federal W-4 form that nailed us. It caused only half of the Federal taken out of my income for some reason. It changed from using dependents to using an actual dollar amount. The harder your work the more you get screwed.

Thanks time to go fishing….

RVRDUX

Just wait until you all start paying for these “free” virus payments. You’ll really be squealing next year.

RVRDUX wrote:

Why should someone have to have additional withholding taken out of they have their W-4’s correctly filled out. I know my wife and I have to do this and still end up paying through our ass. Max withholdings taking out. If someone can figure this out let me know because it pisses me off. Meanwhile everyone else I work with are bragging about how much money they are getting back. Hell I just want it to zero out. 34% of our 2020 income went to state and federal taxes. I know something changed a couple of years ago with the Federal W-4 form that nailed us. It caused only half of the Federal taken out of my income for some reason. It changed from using dependents to using an actual dollar amount. The harder your work the more you get screwed.

Thanks time to go fishing….

RVRDUX

I hear you man. I claim zero and so does my wife. I have them take an additional $150 out of each paycheck and still get nailed every stinking year.

The W4 is not accurate for the amount to deduct from your paycheck. I have had the correct amount of dependents and for the last three years I have had to write checks for between 8k-12k between fed and state. Get rid of income tax and have a straight sales tax of 15%. Don’t want to pay tax don’t spend. That would eliminate tax loops and if you spend a lot you pay more.

walleyevision wrote:

I hear you man. I claim zero and so does my wife. I have them take an additional $150 out of each paycheck and still get nailed every stinking year.

Wait ’til you have to pay on the $250K capital gains you made on GME this year,,,

HRG

Hot Runr Guy wrote:

<div class=”d4p-bbt-quote-title”>walleyevision wrote:</div>
I hear you man. I claim zero and so does my wife. I have them take an additional $150 out of each paycheck and still get nailed every stinking year.

Wait ’til you have to pay on the $250K capital gains you made on GME this year,,,

HRG

I’d love to have that problem! Lol

I think one thing people get confused on is tax brackets. Just because you make say 171,050 as a married couple does not mean you pay 24% fed tax on all of your money only the dollars from $80,250 on up. Each dollar is taxed according to where it is on the scale. Same as a married person making $172,000 they would only pay %32 tax on $950 dollars. Hear people all the time saying they got a raise and now they are in a different tax bracket which is not true for all the money just the amount that is in that bracket.

Just had my taxes done. The first 10,400 of unemployment was tax free I was told.

walleyevision wrote:

I claim zero and so does my wife.

The W4 has changed, and you no longer claim dependents. If you haven’t updated it in a few years, I would recommend updating yours. It’s a little confusing, but I think I have mine adjusted to be even now. I’ll find out in 2022.

RVRDUX wrote:

Why should someone have to have additional withholding taken out of they have their W-4’s correctly filled out. I know my wife and I have to do this and still end up paying through our ass. Max withholdings taking out. If someone can figure this out let me know because it pisses me off. Meanwhile everyone else I work with are bragging about how much money they are getting back.

W4 only gives an estimate of how much you should withhold. It can’t take into account your whole tax situation.

I always laugh at people bragging about how much of a refund they get. May as well wear a t-shirt that says “I love to lend the government my money for free.” People see to think this is some kind of free money from the government instead of what it really is: The money that they lent to government free of charge for the year.

My goal is always to pay in. I don’t want to lend the government one dime. Some people seem to fear under-withholding like the IRS will kick down their door in the middle of the night and haul them off to tax jail because they owe a buck fiddy.

Well Grouse the IRS might show up and arrest you one of these days. I get called all the time and if I don’t send them a bunch of Walmart gift cards within 24 hours The IRS is going to come and arrest me and put me in jail.