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59k is a typo. My wife made $30k more and I made about $20k more. I made a mistake. We got a $1500 refund last year. (It was $4500 2 years ago). I believe we both paid more taxes this year than last year. If no one changed their withholding or exceptions last year wouldn’t tHr taxes withheld raise in proportion with th pe salary, thereby avoiding this issue.
Now you have different numbers than what you had in your last post.
Try to figure out what your tax situation actually is and then ask a question about what you don’t understand.
I think you're confused. Could it be that you got a $1500 refund from the state last year? Your own figures show you owed the Feds $1324 last year. Did you ever send them that check?
Don't go by memory, just read the bottom of the forms. As SL says above, to have your income increase by fifty grand and have your taxes go up only ten is not bad.
In answer to your question about the withholding going up in proportion to your salaries, the answer is NO! That would be the case if there was only one person with earnings but neither your employer nor your wife's knows that there is additional income that will push you up to a higher bracket when you file a joint return. The withholding charts only account for a single earner unless you tell them to take more out. I believe TurboTax has a W-4 calculator for determining how much you should be withholding to not run into the problem that has you so confused.
59k is a typo. My wife made $30k more and I made about $20k more. I made a mistake. We got a $1500 refund last year. (It was $4500 2 years ago). I believe we both paid more taxes this year than last year. If no one changed their withholding or exceptions last year wouldn’t tHr taxes withheld raise in proportion with th pe salary, thereby avoiding this issue.
The problem is you believe your withholding would increase in line with your tax liability. It doesn’t work that way. You made 50k more than the year prior, you are going to pay more in taxes. /endstory
Did you compare it to your 2018 return to see where the differences are?
Mine run either everything or nothing. Last year I sent it in incomplete and they returned every thing they had withheld. This year I did the same and never got a reply at all. There is no rhyme or reason.
Mine run either everything or nothing. Last year I sent it in incomplete and they returned every thing they had withheld. This year I did the same and never got a reply at all. There is no rhyme or reason.
I have no clue what you're trying to say but I can assure you, there is rhyme and reason behind the tax system.
I think you're confused. Could it be that you got a $1500 refund from the state last year? Your own figures show you owed the Feds $1324 last year. Did you ever send them that check?
Don't go by memory, just read the bottom of the forms. As SL says above, to have your income increase by fifty grand and have your taxes go up only ten is not bad.
In answer to your question about the withholding going up in proportion to your salaries, the answer is NO! That would be the case if there was only one person with earnings but neither your employer nor your wife's knows that there is additional income that will push you up to a higher bracket when you file a joint return. The withholding charts only account for a single earner unless you tell them to take more out. I believe TurboTax has a W-4 calculator for determining how much you should be withholding to not run into the problem that has you so confused.
I just re-checked and you are correct. We did PAY $1324 last year. I have been rounding off but really missed the mark by thinking we got a refund. That was the first time in my life I ever owed money.
So, we owed $1324 and this year we made $50,000 more than last year and now owe around $4000. So, I was wrong to assume that making more money will result in paying more taxes, at least enough to keep up with the increase. Of course I have to pay taxes on the money I earn but I was under the impression that they just take more (proportionately) all year and we won't owe at the end. I will use that calculator to see about the withholding. I think the bigger problem is my wife. She has 5 different W2s and a couple of them didn't take out any fed, though she only made a few thousand from them.
I wonder if it make sense to file separately this year.
Then I add hers and we owe $4K again. So, I dont think the problem is either of us individually, but the total household income has to pay far more federal taxes than we are.
That is sometimes referred to as a High Class Problem. Welcome to progressive income taxes.
Every year, our single largest budget line item is to pay our federal income tax obligation. Nothing else comes close.
59k is a typo. My wife made $30k more and I made about $20k more. I made a mistake. We got a $1500 refund last year. (It was $4500 2 years ago). I believe we both paid more taxes this year than last year. If no one changed their withholding or exceptions last year wouldn’t tHr taxes withheld raise in proportion with th pe salary, thereby avoiding this issue.
You seem to be focusing on the wrong thing.
You seem to be focusing on refund/balance due rather than total income tax obligation.
The ONLY thing that matters is total income tax obligation.
The problem is you believe your withholding would increase in line with your tax liability. It doesn’t work that way. You made 50k more than the year prior, you are going to pay more in taxes. /endstory
I just re-checked and you are correct. We did PAY $1324 last year. I have been rounding off but really missed the mark by thinking we got a refund. That was the first time in my life I ever owed money.
So, we owed $1324 and this year we made $50,000 more than last year and now owe around $4000. So, I was wrong to assume that making more money will result in paying more taxes, at least enough to keep up with the increase. Of course I have to pay taxes on the money I earn but I was under the impression that they just take more (proportionately) all year and we won't owe at the end. I will use that calculator to see about the withholding. I think the bigger problem is my wife. She has 5 different W2s and a couple of them didn't take out any fed, though she only made a few thousand from them.
I wonder if it make sense to file separately this year.
That is a big issue, since withholding is based on the income annualized from that particular employer unless you adjust your W-4 to have more withheld. Each employer is thinking your wife only makes what they're paying her, and so they withhold based on that low amount. When you add them all together you're into a higher tax bracket so you'll be paying more than what was withheld.
Up to you to check your withholding during the year, project out your income tax liability and see if you're going to owe or have enough paid in based on what's actually happening.
You will not get a better answer married filing separately.
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