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Old 07-14-2017, 06:22 PM
 
845 posts, read 360,138 times
Reputation: 875

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Quote:
Originally Posted by hitpausebutton2 View Post
i understand the IRS site. but why are they depending on US to reflect on how much we want to take out vs just take out what is needed.. nothing more, nothing less.. Just tell them i have one child and wife doesnt work.. that should be enough info on what needs to be taken out correct? seems the tax system can be a lot more simpler if they really put some work in it.. Just seems they are really double dipping.. pay now and still pay more at the end, vs just take out in installments on your pay right the first time
If everyone in the United States that made exactly what you do that has a spouse and one child had the exact same other income, deductions and credits it would be easy.

But they don't, so it isn't.

Fill out the W-4 properly and you can avoid owing more at the end of the year.

Also, don't include the withholding for social security and medicare in your analysis, those are separate taxes and have nothing to do with the 15% tax rate you mentioned in the original post.
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Old 07-15-2017, 04:50 AM
 
4,229 posts, read 1,906,546 times
Reputation: 3782
Mentioning the fact that income taxes are voluntary in this country usually results in peals of laughter in some quarters, but the simple facts are that the US taxpayer is responsible for determining the tax that he or she owes, and also for assuring that sufficient withholding occurs over the course of the year to meet the requirements of those laws. In some countries, the central tax authority does simply send you a bill at the end of the year, but that's not the way we do things here.
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Old 07-15-2017, 04:55 AM
 
64,621 posts, read 66,129,695 times
Reputation: 43036
your fair share of taxes is the lowest amount you or your your accountant can get it down to using the tools and laws available to us .

thinking your tax bill is double dipping just shows you have a lack of understanding as to our tax system . there is no double dipping .
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Old 07-15-2017, 11:34 AM
 
Location: Stuck on the East Coast, hoping to head West
3,785 posts, read 8,765,275 times
Reputation: 7334
Because taxes are your responsibility. Actually, taxes are due quarterly based on your estimation of taxable income. If you're an employee, you're employer will make these payments to the government on your behalf based on information you've provided your employer.

Use the IRS withholding calculator quarterly and adjust as needed. The calculator will tell you how. You'll need a copy of your prior year tax return.
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Old 07-15-2017, 11:48 AM
 
4,316 posts, read 2,151,729 times
Reputation: 7606
with holding is done every time you get a paycheck based on an estimate as to what your annual income will be.


Your income tax bill is based on your actual annual income.
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Old 07-15-2017, 11:53 AM
 
Location: Southern New Hampshire
6,724 posts, read 11,744,049 times
Reputation: 19361
Quote:
Originally Posted by hitpausebutton2 View Post
So we all pay our taxes through a W2.. State and federal takes their part out of your check.. So why are we still having to pay more than what has been taken out the whole year? Double dipping?. What i been told is you always claim zero no matter what, then claim your dependents at the end of the year to get credit. So really your putting off money now for later? but getting no interest.
Well, you can adjust your withholding so you come out close to even at the end of the year. It's not hard.

And your "double dipping" comment makes no sense at all. Not everyone pays through they year and then pays more the following April 15th (if that's what you're calling "double dipping"); that will only happen if you underestimated your tax liability for the year.

Quote:
Originally Posted by hitpausebutton2 View Post
Still seems like the government is double dipping. Say i am making 45k a year. so tax should be %15. fed. i live in texas so no state taxes.. but they take out 100+ a week in fed/medicare/ss.. ect.. so that is 5200 in taxes if it stays consistant a year.. So really, i am making 40k a year after taxes.. Shouldnt they adjust the w2 rate according to what i make to keep from getting a IOU from both parties? Isnt the goal is to break even, where nobody doesnt pay out. If my tax liability say is 6k a year. than take out 125 in taxes per check to break even..

These numbers are not even close but you get the idea..
First, why are you including Social Security and Medicare? Those deductions have nothing to do with your federal taxes.

Second, you ask "Shouldn't they [the U.S. government, presumably] adjust the w2 rate ..." -- but YOU can adjust your OWN withholding rate very easily. If you think they are taking out too much in federal taxes, increase your allowances. If you think they are taking out too little, decrease them. Simple.

Quote:
Originally Posted by hitpausebutton2 View Post
i understand the IRS site. but why are they depending on US to reflect on how much we want to take out vs just take out what is needed.. nothing more, nothing less.. Just tell them i have one child and wife doesnt work.. that should be enough info on what needs to be taken out correct? seems the tax system can be a lot more simpler if they really put some work in it.. Just seems they are really double dipping.. pay now and still pay more at the end, vs just take out in installments on your pay right the first time
OP, do you really have this little understanding of U.S. taxes? Your questions are very odd.

Seems like you expect the IRS to know everyone's personal financial situation -- if they're married, how many kids, how many deductions, how much did they spend in medical bills that year, if they get a second job, if they have royalties or rental income, etc., etc.

I "project" my income and taxes a few times per year and adjust my withholding if necessary. For example, if I've made $20,000 as of mid-March and only paid $1,000 in federal taxes so far, I know I am way short. If I've paid $8,000 in federal taxes on $20,000, I am likely way over. So I adjust. (Takes about 5 minutes to print and fill out a new w-4 form, then I just give it to my employer's Payroll person.)

In doing my projections, I use the previous year's tax tables. They are adjusted every year, but the changes are typically not large, so using the previous year's tables works fine (at least, it has for me for several years).

Back in the days before I had a house (and now a rental house too), I used the standard deduction and took 1 withholding allowance. IIRC, that put me pretty much on track for the year -- I would likely get a very small refund (which was fine with me -- whenever I got a LARGE refund, I kicked myself, as I would prefer not to give the government an interest-free loan).

Not sure what is so hard about this? Even with my rather complicated tax situation, it takes me maybe an hour 3-4 times a year to make sure I'm on track.
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Old 07-15-2017, 05:57 PM
 
64,621 posts, read 66,129,695 times
Reputation: 43036
the op just needs a lesson on how taxes work . it is clear he lacks understanding in that area .
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Old 07-16-2017, 01:01 AM
Status: "Living the good retired life." (set 28 days ago)
 
Location: Wasilla, AK
5,873 posts, read 3,148,828 times
Reputation: 11857
Quote:
Originally Posted by mathjak107 View Post
the op just needs a lesson on how taxes work . it is clear he lacks understanding in that area .
Not only that, but he doesn't understand what double dipping is. Double dipping is when the state paid me to take military leave and then I was also paid by the Air National Guard. Two paychecks to go fly somewhere like Australia and have fun. And then I got tax-free per diem on top of it! Complete a W-4 and have the proper amount withheld. Ideally I like to owe just a little. That way Uncle isn't getting interest free use of my money.
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Old 07-16-2017, 05:33 AM
 
4,229 posts, read 1,906,546 times
Reputation: 3782
Try collecting a civil service pension earned in public service at the same time as SS benefits earned in the private sector.
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Old 07-16-2017, 01:47 PM
Status: "Living the good retired life." (set 28 days ago)
 
Location: Wasilla, AK
5,873 posts, read 3,148,828 times
Reputation: 11857
Quote:
Originally Posted by Pub-911 View Post
Try collecting a civil service pension earned in public service at the same time as SS benefits earned in the private sector.
I'm going to do that too. Public sector pension, military retirement pension and social security. And yes, I know all about WEP. I'm holding off on SS until FRA or 70. Haven't decided on which yet.
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