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

[KJQ6945]

Last year I got a refund, this year I owe $2800, and nothing really changed. Bidenomics is awesome!

 

[foszoe]

Without anything changing, I would sure like to know how you guys end up owing more. The inflation adjustment alone would have decreased your taxes.

 

[Hoosierdood]

Without anything changing, I would sure like to know how you guys end up owing more. The inflation adjustment alone would have decreased your taxes.

I'd sure like to know that too.

 

[BigRed]

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

There are some good comments there!LOL

 

[Pepi]

I'm getting tired of this forking 7 percent Indiana sales tax. I remember when it went from 6 percent to 7 and how it was suppose to cut our property taxes. Mine property taxes have doubled.

 

[jkaetz]

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.

We just barely crossed a line but my understanding is that only the amount over the bracket gets taxed at the higher rate. I dug in a little farther and see that our effective tax rate has been dropping over the recent years but jumped back up this year.

• 2019: 9.00%
• 2020: 9.78%
• 2021: 7.79%
• 2022: 6.43%
• 2023: 11.06%

Seems things have been in flux since 2020. In 2021 our taxable income went down slightly but the actual taxes owed went up 29% over 2020 and we had a crazy number of credits resulting in a massive refund. In 2022 our taxable income went down by 11% over 2021 but oddly the total taxes we owed went down by 50% from 2021. Then we come to 2023 where our income is back up and so is the tax owed. Not horrible on the percentage table, but not reflected by any of the withholdings calculators either. The combination of increased income and increased percentage without a corresponding increase in withholdings has landed us here. I sure wish they'd quit F-ing with the credits & rates. Pick a number and live in it like the rest of us. Though we don't usually get to pick our number.

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!

Not mean, simply truth. We consider ourselves fortunate to have such a problem. Though you may be under the impression that we haven't owed at all in the past. We have always been part of the 50%, just more so now.

 

[CHCRandy]

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!

Or the 1% that pay over 40% of all taxes.....and still get accused of not paying "their fair share".

 

[tim87tr]

I did see the married filing jointly 12% to 22% adjusted break over income is going up $4800 in 2024, along with standard deduction of $1500, for a total of $6300.

Standard deduction 2024 is $29,200 with $94,300 max income 12% bracket. That's $123,500 gross income without deductions.

Seems like a lot of money to me for a comfortable living without the necessity of running too far into the 22% bracket. A $23,000 401k max contribution would bump the gross income to $146,500 to remain in the 12% bracket. That is a great income level for a 12% bracket.

 

[WebSnyper]

We just barely crossed a line but my understanding is that only the amount over the bracket gets taxed at the higher rate. I dug in a little farther and see that our effective tax rate has been dropping over the recent years but jumped back up this year.

• 2019: 9.00%
• 2020: 9.78%
• 2021: 7.79%
• 2022: 6.43%
• 2023: 11.06%

Seems things have been in flux since 2020. In 2021 our taxable income went down slightly but the actual taxes owed went up 29% over 2020 and we had a crazy number of credits resulting in a massive refund. In 2022 our taxable income went down by 11% over 2021 but oddly the total taxes we owed went down by 50% from 2021. Then we come to 2023 where our income is back up and so is the tax owed. Not horrible on the percentage table, but not reflected by any of the withholdings calculators either. The combination of increased income and increased percentage without a corresponding increase in withholdings has landed us here. I sure wish they'd quit F-ing with the credits & rates. Pick a number and live in it like the rest of us. Though we don't usually get to pick our number.

Not mean, simply truth. We consider ourselves fortunate to have such a problem. Though you may be under the impression that we haven't owed at all in the past. We have always been part of the 50%, just more so now.

Owing ( at tax time) doesn't mean anything in itself (as I assume you are aware). That's just a withholding equation.

It's total tax actually paid that determines if you are one of the folks towing the line for folks who are able to take advantage of the tax welfare system and get more back than they paid on at all. It's ridiculous that anyone should be able to get a net gain from taxes. However the govt seems to think that income tax is an entitlement program.

 

[foszoe]

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

They gave me an inflation adjustment


To my tax enema

 

[ditcherman]

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 knew I'd regret clicking on that link.
Two hours ago.

"Sure if you write it like that it's going to sound bad"

 

[Ark]

I'm getting tired of this forking 7 percent Indiana sales tax. I remember when it went from 6 percent to 7 and how it was suppose to cut our property taxes. Mine property taxes have doubled.

Remember when they got their court decision and started hitting all the online sales for 7%? Huge free money windfall for the state and they just pocketed it.

 

[firecadet613]

We just barely crossed a line but my understanding is that only the amount over the bracket gets taxed at the higher rate. I dug in a little farther and see that our effective tax rate has been dropping over the recent years but jumped back up this year.

• 2019: 9.00%
• 2020: 9.78%
• 2021: 7.79%
• 2022: 6.43%
• 2023: 11.06%

Seems things have been in flux since 2020. In 2021 our taxable income went down slightly but the actual taxes owed went up 29% over 2020 and we had a crazy number of credits resulting in a massive refund. In 2022 our taxable income went down by 11% over 2021 but oddly the total taxes we owed went down by 50% from 2021. Then we come to 2023 where our income is back up and so is the tax owed. Not horrible on the percentage table, but not reflected by any of the withholdings calculators either. The combination of increased income and increased percentage without a corresponding increase in withholdings has landed us here. I sure wish they'd quit F-ing with the credits & rates. Pick a number and live in it like the rest of us. Though we don't usually get to pick our number.

Damn. IMO, can't go wrong with zero dependents on your W4, it works in my case.

But, we typically stay in the same tax bracket year to year and take the standard deduction.

 

[HoughMade]

If it were me, I'd get rid of withholding altogether. I want everyone to be as miserable as me 4 times a year.

This was a new world to me when I joined my present firm 8.5 years ago. It is organized differently from the old place.

Sure did make the pain of taxes more real when they pay you all of "your money", but then you have to write checks for estimated taxes 4 times a year and then file a return in April like everyone else hoping the estimates were somewhere near correct.

 

[Cameramonkey]

If it were me, I'd get rid of withholding altogether. I want everyone to be as miserable as me 4 times a year.

This was a new world to me when I joined my present firm 8.5 years ago. It is organized differently from the old place.

Sure did make the pain of taxes more real when they pay you all of "your money", but then you have to write checks for estimated taxes 4 times a year and then file a return in April like everyone else hoping the estimates were somewhere near correct.

Exactly. Do that.

Then move our elections to the end of April.

 

[shibumiseeker]

You just got to earn enough money to not have to pay taxes. Simple.

 

[jkaetz]

If it were me, I'd get rid of withholding altogether. I want everyone to be as miserable as me 4 times a year.

This was a new world to me when I joined my present firm 8.5 years ago. It is organized differently from the old place.

Sure did make the pain of taxes more real when they pay you all of "your money", but then you have to write checks for estimated taxes 4 times a year and then file a return in April like everyone else hoping the estimates were somewhere near correct.

I think this would solve a lot of problems.

 

[bobzilla]

Wife's school boned us this year. Her and I grossed within $1000 of each other, but I literally paide over TWICE the amount of income taxes to fed. Her SSI payment was double her federal taxes. Brought it up to their HR person and they said "No that is correct. You have to ask for MORE taken out." First time in 22 years of marriage that an employer couldn't be bothered to follow the program I guess.

Of course, we never had kids so we have been boned year after year by all the breeders and their broods getting hella deductions.

 

[bobzilla]

Owing ( at tax time) doesn't mean anything in itself (as I assume you are aware). That's just a withholding equation.

It's total tax actually paid that determines if you are one of the folks towing the line for folks who are able to take advantage of the tax welfare system and get more back than they paid on at all. It's ridiculous that anyone should be able to get a net gain from taxes. However the govt seems to think that income tax is an entitlement program.

We've NEVER been in that lucky bracket. I guess not popping out **** trophies to claim hurt us.

 

[WebSnyper]

We've NEVER been in that lucky bracket. I guess not popping out **** trophies to claim hurt us.

Except they cost more in the long run. And I haven't gotten any tax benefits related to them in some time.