Build Back Better??? (Tax related)

Glad to see America with hyperinflation, soaring energy costs, higher taxes, etc, etc, etc.

I’ve been paying income taxes for over 20 years. EVERY year I’ve overpaid and have gotten refunds from $6 to $6,000 (the higher overpayments were after being married with kids).

This year WE GOT A BILL for $2,900. We didn’t change any withholdings and we didn’t get the “free” money last year, so it’s not like we’re paying them back for it.

I could swallow the $2,900 if it was “stimulated” to us earlier…and say, “Well I saw that coming”…but I can’t…grrrr

Can’t wait for $7 a gallon gas this summer…. Because I do see that coming.

How many more years of this bullshit do we have left?

Let’s Go Brandon!

Oh, it gets more interesting. How do all these “free “ things get paid for? My accountant has advised me o 🙏

UFFDA.. that’s scary.

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Thats odd we got way more than we’ve ever gotten before back in taxes. Like way more. No idea why. My wife does our taxes and I always assume that someday uncle Sam will come knocking

crappie55369 wrote:

Thats odd we got way more than we’ve ever gotten before back in taxes. Like way more. No idea why. My wife does our taxes and I always assume that someday uncle Sam will come knocking

We’ve had the same tax lady (a small family business) for six years.

She told us to get used to it.

I don’t know what magic your wife did, but please let me know.

I had to pay in more this year then ever before, I never received 1 stimulus or any other stuff they handed out. Now I guess I pay for some one else’s.

B-man wrote:

I don’t know what magic your wife did, but please let me know.

Honestly have no idea. The number was so high I really thought she was messing with me. I handle all our finances but she does the taxes. Like I said I assume uncle Sam will come calling someday. She just uses TurboTax though and we always pay extra to have one of their people look it over so who knows

“Free money”.

I just found out that my tax refund is the biggest that it has ever been since I have been in the work force, other than the year I bought my house in 2012.

Unfortunately, I do not expect it anytime soon though. I didn’t get my refund until almost June last year. In previous years, it would take about a month after I filed in early February. Apparently the IRS is extremely understaffed and the Covid thing didn’t help either.

I hire a private accountant to do mine.

gimruis wrote:

Unfortunately, I do not expect it anytime soon though. I didn’t get my refund until almost June last year. In previous years, it would take about a month after I filed in early February. Apparently the IRS is extremely understaffed and the Covid thing didn’t help either.

We got ours back a few days ago. Think we filed 3rd or 4th week of January

crappie55369 wrote:

<div class=”d4p-bbt-quote-title”>gimruis wrote:</div>
Unfortunately, I do not expect it anytime soon though. I didn’t get my refund until almost June last year. In previous years, it would take about a month after I filed in early February. Apparently the IRS is extremely understaffed and the Covid thing didn’t help either.

We got ours back a few days ago. Think we filed 3rd or 4th week of January

Well alright that’s great news. Looking forward to a massive refund SOON then

crappie55369 wrote:

We got ours back a few days ago. Think we filed 3rd or 4th week of January

Was that both state and federal? I usually get the state one within about 10 days but the federal is much longer.

Please enlighten me, what tax laws have changed in the last two years that is causing this change? Are you possibly making more taxable income that’s placing you in a higher tax bracket?

Just an honest question, but is there a correlation? The BBB or any government spending program is one category, and your tax rate is another. Regardless of how much the government is spending, isn’t your annual tax bill based on your tax bracket?

castle-rock-clown wrote:

Please enlighten me, what tax laws have changed in the last two years that is causing this change? Are you possibly making more taxable income that’s placing you in a higher tax bracket?

I wish I knew. We made a little more money than the previous year but it wasn’t a big increase.

I’ll call her and have her double check everything. I was watching the kids while my wife and her did the taxes.

I usually get a little back as well this year just made it including paying extra for federal and state get enough back to buy a Zebco 202 reel only.

B-Man, I am not sure if you received this, but did you get monthly child tax credits last year? I was eligible, but unless you specifically opted out of it (which I did), you were going to get them if you were eligible.

I’m just spitballing here trying to think of why your taxes may have changed so much.

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Anyone know how the child credit direct payments impact taxes? I was under the impression that they would be lowering our refund if you didn’t turn them off.

We made more $$ last year so I’m expecting to have a nice bill from Uncle Sam…..

gimruis wrote:

B-Man, I am not sure if you received this, but did you get monthly child tax credits last year? I was eligible, but unless you specifically opted out of it (which I did), you were going to get them if you were eligible.

I’m just spitballing here trying to think of why your taxes may have changed so much.

We did, but even without them we would still would have had to pay in (albeit that much less). Again, something we’ve never had to do.

Since having kids our smallest refund has been around $3,000 and up to $6,000 (both when you get the child tax credit at the end of the year) instead of distributed earlier.

I’d be having a serious conversation with my tax professional on what exactly happened.

They don’t change tax laws without notification, which should give the tax professional notice to what they need to change for withholdings to break even for the year.

I still remember the good ol days of W2s and tax refunds, haven’t been that way for awhile.

It could be easier,,,,,

HRG

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Why would anyone ever want a refund of say more than a couple $100 ??

The important thing is what amount of tax did you pay (total $) and what % of your income that amounted to.

Withholding can be adjusted by managing your W-4(s). Take the extra money and bank it, invest it, or I suppose spend it if you think inflation is going to keep pressing items higher in price.

I actually set ours up so that some years we have to pay … be careful though if you run too high too many years in a row … they will penalize you. Have not been there yet.

The e-files that I do for my kids … they tell me they get their refunds in under two weeks both state and Feds.

mahtofire14 wrote:

We made more $$ last year so I’m expecting to have a nice bill from Uncle Sam…..

X2

I’m still not understanding the correlation between a difference in a person’s tax filings and build back better.

Ditto…Did my taxes and and not much changed outside the child tax credit question.

I opted out from child tax credits and made to much for the stimulus checks.
I made right about the same as I have the last 5 years. I’m not sure what’s different. I claim 0 all year and they still want more. I guess they should want more. I am a single white male with full time kids. What do I need the money for. I only work my ass off for it.