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Old 04-15-2019, 02:31 PM
 
19,864 posts, read 13,049,312 times
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Quote:
Originally Posted by jonbenson View Post
I have a low salary and low income and working 3 days a week. I recall on NY state (+ "local" ) taxes either getting a small refund like $40 or maybe having to pay a similarly low amount



But now I owe about $400 according to turbo Tax



I was thinking this could be an error on my part. But could such a big difference be due to Trump policy changes?



If I look at the state (+ local) section on my last year W2 based on 2017 at the sum of my state + local income tax and compare it to my wages that tax figure is 4.6% of my wages



Now when I do the same thing with my W2 for now (based on 2018) that figure is 3.5%


That is only about a 1% difference. It seems as per my wages, that lower percentage of tax is only about half of what I owe. I have until 12 pm tonight to finalize that online tax from but I'm wondering if I should file for an extension and either let H & R do it or try another program


Did you check your withholdings (W-2) before 2018 and make necessary adjustments if required?


https://www.vox.com/policy-and-polit...hholding-trump
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Old 04-15-2019, 02:34 PM
 
Location: Manhattan
21,165 posts, read 27,763,608 times
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If something happens we the taxpayers will be there to bail you out of course.


Only once you spend yourself down to penury.
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Old 04-15-2019, 02:51 PM
 
19,864 posts, read 13,049,312 times
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Quote:
Originally Posted by jonbenson View Post
I have a low salary and low income and working 3 days a week. I recall on NY state (+ "local" ) taxes either getting a small refund like $40 or maybe having to pay a similarly low amount



But now I owe about $400 according to turbo Tax



I was thinking this could be an error on my part. But could such a big difference be due to Trump policy changes?



If I look at the state (+ local) section on my last year W2 based on 2017 at the sum of my state + local income tax and compare it to my wages that tax figure is 4.6% of my wages



Now when I do the same thing with my W2 for now (based on 2018) that figure is 3.5%


That is only about a 1% difference. It seems as per my wages, that lower percentage of tax is only about half of what I owe. I have until 12 pm tonight to finalize that online tax from but I'm wondering if I should file for an extension and either let H & R do it or try another program
It isn't the program or whoever is calculating our taxes, but *you*. Again dollars to donuts you didn't change your withholding for 2018 so less was taken out of your checks. Now that tax time is here whatever software/program being used looks at what you paid in taxes (withholding or whatever) versus what is owed. In this instance since less was withheld (presumed) there is a small difference which now must be made up.


https://www.vox.com/policy-and-polit...hholding-trump


If you have the time and feel like playing around go back and change your entered withholding/tax paid amount to reflect one percent (1%) or even slightly more, then let the program calculate changes. Am more than unusually certain it will show your state/local taxes totally paid and or you get a slight refund (over payment).
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Old 04-15-2019, 04:30 PM
 
105 posts, read 202,787 times
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Quote:
Originally Posted by BugsyPal View Post
It isn't the program or whoever is calculating our taxes, but *you*. Again dollars to donuts you didn't change your withholding for 2018 so less was taken out of your checks. Now that tax time is here whatever software/program being used looks at what you paid in taxes (withholding or whatever) versus what is owed. In this instance since less was withheld (presumed) there is a small difference which now must be made up.


https://www.vox.com/policy-and-polit...hholding-trump


If you have the time and feel like playing around go back and change your entered withholding/tax paid amount to reflect one percent (1%) or even slightly more, then let the program calculate changes. Am more than unusually certain it will show your state/local taxes totally paid and or you get a slight refund (over payment).

Thanks for the answer I assume you are saying to do that to see the result and then revert to putting back the original figures rather than changing the figure permanently. Am I right?

I entered the figures from the boxes near the end box 17 State Income tax and box 19 Local Income Tax printed on the W2
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Old 04-15-2019, 05:05 PM
 
5,129 posts, read 5,015,202 times
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Quote:
Originally Posted by stormgal View Post
Does anyone here find that they owe more taxes or have little to no refund? Personally, it's very rare that I get a refund, but I sure owed thousands in taxes this year.

I think that the recent tax adjustment hit blue states - and especially cities like New York - very hard, while red states are having a great ol' time collecting more in refunds.

I also know some housekeepers and other hourly employees getting thousands back. I can't figure it out: Besides having a child, or adjusting a holding of zero - what else can anyone do to get "thousands of dollars in refunds" instead of owing?
I haven't seen a refund since before I was married. I definitely owed a lot this year.

My withholding is at zero. So I guess I'm not sure what else to do at that point. I wish it was because I personally made more than six figures. Or because my husband made more than six figures. What am I missing? Besides the fact that I should work less now because working hard isn't worth it.

Quote:
Originally Posted by BugsyPal View Post
It is no secret; if you are single or even married couple with few to nil deductions or credits you are going to pay dearly in taxes. That has been true for ages and this new tax "reform" does little to change things.

Biggest source of those deductions or credits for many low or middle income households are kids. That and if you can pile on earned income tax credit things get even better.

Majority of households in NYC are renters; so that takes off table the other big (or least large) deduction; mortgage and other costs associated with homeownership.

Many low/middle income households either legitimately or not run game by racking up dependents by claiming their grandkids, parents, or anyone else they can who is living with them, and or at least they are paying enough support to qualify.

United States tax code like many other countries favors marriage and children. Singles get screwed royally.

If you aren't planning on having any kids best you can do is either not earn (good luck with that and live in NYC), or try to find ways to lower your AGI. Things like retirement savings and so forth. Other than that you've just got to fine tune your withholdings to ensure your not over or under paying.
Once you're married but without children, prepare to owe. I didn't really owe money when I was single.

Forget about the "big" deduction for ownership---it takes a lot to quality for that in the first place. I never have and I probably never will. Many people probably don't.

Maybe I'll try popping out one of those kids soon.
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Old 04-15-2019, 05:07 PM
 
69,370 posts, read 69,945,255 times
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Quote:
Originally Posted by city living View Post
I haven't seen a refund since before I was married. I definitely owed a lot this year.

My withholding is at zero. So I guess I'm not sure what else to do at that point. I wish it was because I personally made more than six figures. Or because my husband made more than six figures. What am I missing? Besides the fact that I should work less now because working hard isn't worth it.



Once you're married but without children, prepare to owe. I didn't really owe money when I was single.

Forget about the "big" deduction for ownership---it takes a lot to quality for that in the first place. I never have and I probably never will. Many people probably don't.

Maybe I'll try popping out one of those kids soon.
Most homeowners can’t itemize..... it is only those with big mortgages and high taxes
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Old 04-15-2019, 05:14 PM
 
19,864 posts, read 13,049,312 times
Reputation: 13654
Quote:
Originally Posted by jonbenson View Post
Thanks for the answer I assume you are saying to do that to see the result and then revert to putting back the original figures rather than changing the figure permanently. Am I right?

I entered the figures from the boxes near the end box 17 State Income tax and box 19 Local Income Tax printed on the W2
Yes, that is what one was implying.


You have no choice but to enter sums printed on your W2 forms, that is the information being supplied to IRS, and it does not match will trigger a rejection or closer look at your returns. Only meant to try changing information to see why now you owe instead of getting money back or whatever.


Basically what happened was for 2018 federal government changed withholding tables so most people saw less taken out of their checks. But many equally also didn't pay attention to the warnings, notices and other advice to check their W2 withholding rates and make adjustments where necessary.


Far too many people clam excess numbers on their W2 forms so more is withheld from their pay than should. Main reason (and I never understood the logic behind) is so they get a "huge" refund when filing taxes in April. IRS/government is trying to stop people from giving feds interest free loans of their money (as they should).


Sadly people didn't change their withholdings as advised and so between changes to tax withholding piled onto their keeping old deductions on W2 they end up owing this year.

Last edited by BugsyPal; 04-15-2019 at 06:44 PM..
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Old 04-15-2019, 05:20 PM
 
19,864 posts, read 13,049,312 times
Reputation: 13654
Quote:
Originally Posted by city living View Post
I haven't seen a refund since before I was married. I definitely owed a lot this year.

My withholding is at zero. So I guess I'm not sure what else to do at that point. I wish it was because I personally made more than six figures. Or because my husband made more than six figures. What am I missing? Besides the fact that I should work less now because working hard isn't worth it.



Once you're married but without children, prepare to owe. I didn't really owe money when I was single.

Forget about the "big" deduction for ownership---it takes a lot to quality for that in the first place. I never have and I probably never will. Many people probably don't.

Maybe I'll try popping out one of those kids soon.
This country needs to borrow a page from other nations like France where married persons continue to pay their taxes under their own names/singles. There is another form for "households" where things are all brought together to those married, cohabiting or whatever.


Feminists however have long resisted any sort of change along those lines because it would give the earning spouse (presumably the husband) more power. By that one assumes it means his wife wouldn't get to see his entire financial business as with joint tax returns.


Beauty of married persons filing as singles is it gets rid of in whole or part the insane nonsense of a married person being held responsible for their spouses tax issues merely because of a joint tax return.


IIRC only way married couples come out ahead with the US tax code is if the household is comprised as conservatives want; that is some Ozzie and Harriet 1940's or whatever ideal where one spouse (presumably the wife) stays home and or had little to nil income, and the man is breadwinner.


Two income households without children, especially where both partners earn get hit with insane taxes.
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Old 04-15-2019, 06:02 PM
 
105 posts, read 202,787 times
Reputation: 74
Quote:
Originally Posted by BugsyPal View Post
Yes, that is what one was implying.


You have no choice but to enter sums printed on your W2 forms, that is the information being supplied to IRS, and it does not match will trigger a rejection or closer look at your returns. Only meant to try changing information to see why now you owe instead of getting money back or whatever.


Basically what happened was for 2018 federal government changed withholding tables so most people saw less taken out of their checks. But many equally also didn't pay attention to the warnings, notices and other advice to check their W2 withholding rates and make adjustments were necessary.


Far too many people clam excess numbers on their W2 forms so more is withheld from their pay than should. Main reason (and I never understood the logic behind) is so they get a "huge" refund when filing taxes in April. IRS/government is trying to stop people from giving feds interest free loans of their money (as they should).


Sadly people didn't change their withholdings as advised and so between changes to tax withholding piled onto their keeping old deductions on W2 they end up owing this year.

Trump thought people would be impressed by a slight increase in their paychecks due to less withholding...
but they didn't notice. Instead they got less on their pretty annual check with the statue of liberty on it - or got none and owed money.

Psychologically it seemed a like gift from Uncle Sam-Santa, saving money and then a prize at the end of the year for year of hard work and in a sexy lump sum. - deposited into one's savings account maybe.... but often blown on restaurants, a fancy new phone, etc )

In reality a tax free loan one had made to the government
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Old Yesterday, 04:32 AM
 
19,864 posts, read 13,049,312 times
Reputation: 13654
Quote:
Originally Posted by jonbenson View Post
Trump thought people would be impressed by a slight increase in their paychecks due to less withholding...
but they didn't notice. Instead they got less on their pretty annual check with the statue of liberty on it - or got none and owed money.

Psychologically it seemed a like gift from Uncle Sam-Santa, saving money and then a prize at the end of the year for year of hard work and in a sexy lump sum. - deposited into one's savings account maybe.... but often blown on restaurants, a fancy new phone, etc )

In reality a tax free loan one had made to the government

Am not a huge fan of His Orangeness and this some piece of tax "reform"; but never the less it is law and people need to put on their big boy pants (or big girl panties), and sort out their W-4 and other information to get themselves straight.


This piece by NYT pretty much covers everything: https://www.nytimes.com/2019/04/14/y...thholding.html


Standard deduction was increased, but all those personal/dependent exemptions are now gone. So those who were claiming 2, 3, 4 or whatever dependent exemptions on their W-4 forms to have more withheld from their checks in order to get a large refund in April now have to think again.


Indeed the new W-4 lays everything out so people cannot continue to do that anymore.


People need to take some personal responsibility. If they don't trust themselves to automatically save that "extra" or whatever money in their paychecks simply set up a savings, retirement or whatever account to have automatic deductions/direct deposit right from paycheck. This way you don't even see the money and hopefully out of sight means out of mind.
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