70% increase in income = 150% increase in taxes?!

[jkaetz]

The wife and I have changed jobs the last couple years increasing our household income and 2023 is the first year where we're both in our new positions for the entire year. I expected to owe 2 - 3k over least year but somehow even with three kids we are short five figures?!! I'm beside myself. We are fortunate to have such a problem and we can pay it and adjust our withholdings but it will eat into our savings more than anticipated. Keep in mind this is just income from our employers, no capital gains or other income included. IMO the withholdings calculators woefully mislead us.

Anyone else get a surprise, good or bad, this tax season?

 

[gassprint1]

The wife and I have changed jobs the last couple years increasing our household income and 2023 is the first year where we're both in our new positions for the entire year. I expected to owe 2 - 3k but somehow even with three kids we are short five figures?!! I'm beside myself. We are fortunate to have such a problem and we can pay it and adjust our withholdings but it will eat into our savings more than anticipated. Keep in mind this is just income from our employers, no capital gains or other income included. IMO the withholdings calculators woefully mislead us.

Anyone else get a surprise, good or bad, this tax season?

I think in 21 was when we got the surprise from taxes. Because of biden, they started taking less and mean very little taxes out. Got back half of what we usally got in federal and virtually nothing in state. Gf had to redo her tax paper to have anther 20 out each week.

 

[indykid]

Been in the news lately that most people will find the government deeper into their pockets then ever before.

Remember, Biden said that those earning below $400K will not see a tax increase. Right!!! They just see their income go down.

 

[Cameramonkey]

I got a rather large raise this past year to bring my pay up more to industry standard. I'm a bit nervous myself. Just installed Turbotax a few minutes ago and its updating now. *sigh* Here goes nothin

 

[firecadet613]

The wife and I have changed jobs the last couple years increasing our household income and 2023 is the first year where we're both in our new positions for the entire year. I expected to owe 2 - 3k but somehow even with three kids we are short five figures?!! I'm beside myself. We are fortunate to have such a problem and we can pay it and adjust our withholdings but it will eat into our savings more than anticipated. Keep in mind this is just income from our employers, no capital gains or other income included. IMO the withholdings calculators woefully mislead us.

Anyone else get a surprise, good or bad, this tax season?

Damn.

No surprise here and the wife and I (2 kids) have either owed a bit or got some back every year, including last year where we both took new positions. I claim zero and she claims one. We claim the standard deduction since Trump bumped up the amount.

I've never used a withholding calculator, but our income has steadily increased year over year (many years in a row) and we seem to come out ok. Nothing extra is withheld

As long as you're not changing tax brackets, you should come out OK.



I'd confirm the info on you W4s and make changes ASAP, if needed.

 

[JTKelly]

The wife and I have changed jobs the last couple years increasing our household income and 2023 is the first year where we're both in our new positions for the entire year. I expected to owe 2 - 3k but somehow even with three kids we are short five figures?!! I'm beside myself. We are fortunate to have such a problem and we can pay it and adjust our withholdings but it will eat into our savings more than anticipated. Keep in mind this is just income from our employers, no capital gains or other income included. IMO the withholdings calculators woefully mislead us.

Anyone else get a surprise, good or bad, this tax season?

Welcome to my life. BTDT

 

[BigRed]

But it's patriotic to be plundered by state!

 

[foszoe]

But it's patriotic to be plundered by state!

I just wish they would send flowers, a thank you card, chocolates, something.....

 

[BigRed]

I just wish they would send flowers, a thank you card, chocolates, something.....

The mafia may. I wouldn't hold out hope for state.

 

[Nugget]

...even with three kids we are short five figures?!!

This is going to sound meaner than i intend it to, but....

So you finally make enough money where your standard deductions, exemptions, and child tax credits don't wipe out your entire income, thus placing the tax burden of your family on others? Congratulations! You're now part of the 50% of Americans that pay 98% of all income taxes!

 

[Cameramonkey]

Sonofa...

We would have been spot on as usual, owing around $100. But the 17 year balancing act we've been doing was thrown off this year.

Since my son is now 17, his deduction went from $2,000 to $500 (ironic since he now eats more than ever LOL) so that deduction that normally balanced out our taxes is gone, so we now essentially owe the balance of his deduction.
Its a first world problem. We have the money in savings, so Praise God its just an annoyance for us.

 

[KokomoDave]

We owed feds this year. I call BS but it showed on Freetax USA, H&R Block, Turdbotax, etc. How the heck did this happen? I'm on extended sick leave making just above poverty level! My wife hasn't earned more as a teacher?
State is always a pay situation as I don't want them hanging onto my money.

 

[Cameramonkey]

We owed feds this year. I call BS but it showed on Freetax USA, H&R Block, Turdbotax, etc. How the heck did this happen? I'm on extended sick leave making just above poverty level! My wife hasn't earned more as a teacher?
State is always a pay situation as I don't want them hanging onto my money.

Taxes make less than zero sense. I used to get back 1500 a year or so. Then my investment guy said to do the deduction worksheet, dont just claim the number of people in your household.

So I started at 4 since there are 4 of us. but doing the calculation form we jumped to 7. That didnt seem right but HR said it was still below the number they'd have to call in to the IRS, so go with it. And my guy said "Relax. Look at your next check. Calculate the difference in take home pay. Multiply that number by 26 and that should equal your last tax refund more or less. If it does you are on target." It was and sure enough we owed only $100 the next year.

 

[Hoosierdood]

My wife and I made around $5k more in 2023 than we did the previous year. We ended up owing $1800 this year, where last filing we only owed $200. Nothing has changed. Same jobs, same deductions, just a slight raise for both of us.

Funny thing is that last year we got an $18 refund from the State, but this year we are getting back $600. So with nothing changing in our filing status, we get more back from the state, but end up owing more to the feds.

 

[WebSnyper]

I just wish they would send flowers, a thank you card, chocolates, something.....

I'd settle for some lube.

My wife's business (partnership so I get the k-1 from her share of the business and use it in our personal tax) has been a wildcard each year, but the previous 2 years I did a good job of offsetting it by adding a good chunk of extra withholding each paycheck for federal and a little extra on state.

This year she sold the business and between that and having a decent year myself (bonus and stock awards make it tough for me to predict my actual adjusted gross each year) we got hit pretty good.

Maxed out HSA, Maxed out 401, contributions, etc and still end up with uncle Sam taking a considerable amount of my money (total tax bill not just the settle up that occurs at tax filing time).

Should be a bit easier to predict now that I don't have to contend with her business being a factor.

529 tax credit helps quite a bit with state thankfully.

Make too much to be able to claim any tuition costs on federal though.

 

[foszoe]

I'd settle for some lube.

i knew i forgot an item.

 

[Cameramonkey]

i knew i forgot an item.

You mean a business deduction? If you are buying this much lube, I guess you really DO need to deduct that off your taxes.
(the fake reviews are hilarious)

Amazon.com: Customer reviews: Passion Natural Water-Based Lubricant - 55 Gallon

Find helpful customer reviews and review ratings for Passion Natural Water-Based Lubricant - 55 Gallon at Amazon.com. Read honest and unbiased product reviews from our users.

www.amazon.com

 

[firecadet613]

@jkaetz did you get bumped up to the next tax bracket?

 

[WebSnyper]

You mean a business deduction? If you are buying this much lube, I guess you really DO need to deduct that off your taxes.
(the fake reviews are hilarious)

Amazon.com: Customer reviews: Passion Natural Water-Based Lubricant - 55 Gallon

Find helpful customer reviews and review ratings for Passion Natural Water-Based Lubricant - 55 Gallon at Amazon.com. Read honest and unbiased product reviews from our users.

www.amazon.com

I'm not going to ask how you wandered across that on Amazon.

 

[Cameramonkey]

I'm not going to ask how you wandered across that on Amazon.

Repeat customer. Duh. I think I'm on my 4th barrel. Go figure:

But seriously, Its infamous due to the fake reviews. Hilarious reading.