Tax filing

XJsavage

XJsavage

CounterCulture
Joined
Aug 15, 2009
Location
Lyle's Ford SC
Its that time of year!
I've got a list about a country mile long. Should be seeing it show up in my bank account shortly. My list includes paying off a few credit cards, buying a winch, soft doors for the Jeep and a few other other misc items to get ready for a solid year of wheeling!
:bounce:
 
I am waiting to file until April 14, and hoping I have to pay :D, so no list for me
 
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braxton357 said:
Sounds like you should rethink how much you are withholding.! I'm a single white male, maybe I'll fill up the fuel tank.
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No kidding. Why let the government have a free loan all year? Change your withholding status and put that money to good use during the year. Not disciplined enough to save? Set up a separate bank account and have your employer shift some of your paycheck to it. I usually always pay a little and have so for at least a decade now. I get the most use of my money as I can every year and get a "free loan" from the government on the little bit that I owe.
 
I'll write that check on April 15
 
Is anyone else seeing their state taxes go WAY up? I am one of the ones who gets a big fat refund because I like having that big check and not having to worry about owing at the end of the year. I know I am giving the government a "free loan" but so what, I get it back and then I let it sit in my money market after the fact so whatever. Been doing it for years and doesn't bother me a bit.

Last year I got about $3500 refund for federal and $1200 refund for state. This year I have more deductions, but also more income, and my take home is roughly the same. I think I might be in a higher tax bracket now but whatever, shouldn't matter this much.

So far I am seeing my federal refund at $4k and my state at $81. Yes, my state refund has gone down over $1k while my federal has gone up. I don't know how that is even possible but several of my friends have seen the same thing, and most of them owe this year where they have never owned state taxes before.

Anyone else seeing this?
 
I claim 1. How differently could I go about it?
I did 1099 for years before this and always paid $1k-$1400 per year. I'm still new to this.
 
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My state refund went down a ton too (I was about to post the same thing when your post showed up). Last year I got right at 1200 back and am getting $93 this year. I have heard a ton of people had to pay state this year.

Duane
 
Ron said:
I'll write that check on April 15
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Bingo.
It was close this year, I ended up slightly owing. I prefer to get about a 100- $200 refund at most.
 
Blaze said:
Is anyone else seeing their state taxes go WAY up? I am one of the ones who gets a big fat refund because I like having that big check and not having to worry about owing at the end of the year. I know I am giving the government a "free loan" but so what, I get it back and then I let it sit in my money market after the fact so whatever. Been doing it for years and doesn't bother me a bit.

Last year I got about $3500 refund for federal and $1200 refund for state. This year I have more deductions, but also more income, and my take home is roughly the same. I think I might be in a higher tax bracket now but whatever, shouldn't matter this much.

So far I am seeing my federal refund at $4k and my state at $81. Yes, my state refund has gone down over $1k while my federal has gone up. I don't know how that is even possible but several of my friends have seen the same thing, and most of them owe this year where they have never owned state taxes before.

Anyone else seeing this?
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It all depends what credits and deductions you're taking. Many things have "phase out" at different AGI levels, so as you income goes up, not only do you pay more by being in a higher bracket, but the amount you save on various deductions also goes down. For example the amount of deduction you get for mortgage interest starts phaseout around 100k AGI, and gone completely by something like 109k.
The effective result is a higher net % rate that you actually pay.
 
RatLabGuy said:
Bingo.
It was close this year, I ended up slightly owing. I prefer to get about a 100- $200 refund at most.
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Exactly, as long as I either pay or get a refund for less than $500, then I am happy.
 
XJsavage said:
I claim 1. How differently could I go about it?
I did 1099 for years before this and always paid $1k-$1400 per year. I'm still new to this.
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The best case is to be as close to zero on April 15; either small refund or owe a small amount. To accomplish that you have to play with your exemptions. If you take the standard deduction, claim 1 on your W-4, and get a hefty refund check then I would consider bumping that 1 up to 2 or 3.
 
For State I typically owe less than $100. For Federal I typically get back roughly $1k. Interest rates being what they are for checking or savings accounts it doesn't make any difference if they have it or I have it. It's just going in the bank anyway.
 
I gained on the fed level, owed on the state. Bastards....
 
We don't have all our tax information yet. We usually hand everything over to the accountant in early March, then pay up as late as possible, lol.
 
BigClay said:
Exactly, as long as I either pay or get a refund for less than $500, then I am happy.
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I'll be paying roughly 10x that.
Whenever a payroll system figures out how to handle Commissioned sales people I'll be much happier.

(That is checking the married but withold at the higher single rate, 0 dependents, and asking for an extra $200 to be held from every paycheck)

I'll probably bump that to $400 next year.
 
BigClay said:
The best case is to be as close to zero on April 15; either small refund or owe a small amount. To accomplish that you have to play with your exemptions. If you take the standard deduction, claim 1 on your W-4, and get a hefty refund check then I would consider bumping that 1 up to 2 or 3.
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this
For the last few years, since changing to my new job each year I've bumped up the # of exemptions until it was about right... now this year I seem to be just over a new threshold and will have to back off by 1 to help it even out next year.

Jus Jim said:
For State I typically owe less than $100. For Federal I typically get back roughly $1k. Interest rates being what they are for checking or savings accounts it doesn't make any difference if they have it or I have it. It's just going in the bank anyway.
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this too. Unless you are making pretty substantial income, and willing to put your witholdings into something that makes pretty decent interest at some risk, the amount you can make on that $$ in actual dollars is not significant, certainly in light of the cost of the penalties for underpayment.
 
Ron said:
I'll be paying roughly 10x that.
Whenever a payroll system figures out how to handle Commissioned sales people I'll be much happier.

(That is checking the married but withold at the higher single rate, 0 dependents, and asking for an extra $200 to be held from every paycheck)

I'll probably bump that to $400 next year.
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How do you not get hit w/ the underpayment penalty? That's where people really get screwed. Is there an exemption if your income is commissioned or fluctuated by quarter or something?
 
Me, I'll be paying as I usually do. That's one of the cost of being self employed and receiving 1099's. It's never really all that much though. I normally put a lil away to cover it, but the coffers are running a lil slim this year. It was nicer and easier just getting a w-2 but I wont go back unless I absolutely have too...
 
I claim 0. I'll be getting $5250 this year. It's a little less than I got last year but I filed myself this year and made about 10% more.
 
RatLabGuy said:
How do you not get hit w/ the underpayment penalty? That's where people really get screwed. Is there an exemption if your income is commissioned or fluctuated by quarter or something?
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The penalty isnt as outrageous as most claim it to be. But even still there is a function where you can promise to pay quarterly estmates next year and they forgive the penalty. It actually states in the tax code that this promise cant be reviewed. So I just promise and pinky swear every year and add the extra form in.
 
We usually get about $1500 back. This year we had a baby and thought we would get a nice refund. But the wife made more this year and it put us in a higher tax bracket. Also thought we would be able to use the medical expenses but looks like our agi is to high and it also puts us out of the child tax credit of $1000. Looks like we will be paying this year.
 
Fed is looking nicely for me this year with the tax credit I get back for my MBA. Haven't finished it yet though as some of my 1099s just got posted today.
 
Ron said:
The penalty isnt as outrageous as most claim it to be. But even still there is a function where you can promise to pay quarterly estmates next year and they forgive the penalty. It actually states in the tax code that this promise cant be reviewed. So I just promise and pinky swear every year and add the extra form in.
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ah yes, I did that one year when I was a post-doc and had no withholding as a "research fellowship". Of course I was a good boy and filed quarterly the next year, assuming a swarm of agents in black would swoop in and raid my home...
 
Havent had em done yet.I made more this year than last but I have a lot more deductions.No state income tax either.:smokin:
 
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