Fed Tax Increase

[wtburnette]

Not sure if this is the right place, but not sure where else to post it.

Did the Trump tax cut that he did previously expire in 2020? My Fed tax jumped up from $285 to $411 per paycheck. That's a pretty big difference...

I know my company cut over our pay system, but I wanted to see if this was a company issue, or if everyone else is seeing this

 

[foszoe]

Not sure if this is the right place, but not sure where else to post it.

Did the Trump tax cut that he did previously expire in 2020? My Fed tax jumped up from $285 to $411 per paycheck. That's a pretty big difference...

I know my company cut over our pay system, but I wanted to see if this was a company issue, or if everyone else is seeing this

No.

Look at the FICA taxes. Did they jump?

 

[ghitch75]

 

[KittySlayer]

No.

Look at the FICA taxes. Did they jump?

Nope, still 7.65% (6.20 + 1.45)

 

[foszoe]

Nope, still 7.65% (6.20 + 1.45)

Not yours his Or maybe you were really replying to him.

After a certain amount of annual income, FICA is no longer withheld for the rest of the year. Think its 130kish last year (goes up with FICA COLAs or some such)

Or it could be that the employer/employee was participating in the payroll tax deduction Trump offered as a part of the COVID stuff by executive order. That expired at the end of the year too, I think.

 

[KittySlayer]

Not yours his Or maybe you were really replying to him.

After a certain amount of annual income, FICA is no longer withheld for the rest of the year. Think its 130kish last year (goes up with FICA COLAs or some such)

Well he did say his “Fed” tax, not FICA and a with the numbers he threw out he does not make enough to his the FICA limits.

 

[wtburnette]

This was in the FIT line on my paycheck stub. Has nothing to do with FICA or anything else. From other people posting and not having anything similar, I'm going to have to say it's likely an issue with the company. The only thing that changed is that I changed my marital status, but I don't think that would affect the FIT deduction that much.

 

[foszoe]

This was in the FIT line on my paycheck stub. Has nothing to do with FICA or anything else. From other people posting and not having anything similar, I'm going to have to say it's likely an issue with the company. The only thing that changed is that I changed my marital status, but I don't think that would affect the FIT deduction that much.

If you changed your W4 it would and the amount yours changed is about right for an allowance change if you are paid biweekly or semi monthly or perhaps changed withholding from married filing jointly to single.

 

[foszoe]

Well he did say his “Fed” tax, not FICA and a with the numbers he threw out he does not make enough to his the FICA limits.

True. I have a tendency to lump all taxes into federal/state. Was just brainstorming on how some of those numbers could change.

 

[KittySlayer]

The only thing that changed is that I changed my marital status, but I don't think that would affect the FIT deduction that much.

Actually changing marital status could be it. Go to link below and the paycheck calculator and let it calculate under both and see the difference.

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[wtburnette]

Wow, that's a huge penalty for being single again (though kinda worth it if you know what I mean).

 

[JettaKnight]

Since there's already a thread....

I just got a notice from the IRS passed on to me - You can file now, but the IRS isn't going to be accepting any returns until Feb 12.

 

[indyblue]

Wow, that's a huge penalty for being single again (though kinda worth it if you know what I mean).

Lol
Yeah, that “wife” tax can be brutal

I was very lucky, my wife was not a material girl.

 

[wtburnette]

I'd always heard of the "married tax", so I was very surprised when I was single again and had more taxes taken out. Didn't make a lot of sense to me.

 

[churchmouse]

I'd always heard of the "married tax", so I was very surprised when I was single again and had more taxes taken out. Didn't make a lot of sense to me.

Does "ANY" tax make "ANY" sense to you.

 

[wtburnette]

Flat tax on sales, nothing more. Nothing else makes any sense to me in that regard. Our draconian tax system needs to go on the scrap heap of history.

 

[Hatin Since 87]

Does "ANY" tax make "ANY" sense to you.

Roads, military, police, firemen. Other than that, no.

 

[KittySlayer]

I'd always heard of the "married tax", so I was very surprised when I was single again and had more taxes taken out. Didn't make a lot of sense to me.

The way to think of it is the Leave it to Beaver era which is when 1ht 1954 Tax Code was adopted. The tax system was designed with Ward working full time and being the breadwinner while June stayed home caring for Wally and Beaver. So the tax brackets were set up so a married man stayed in the lower tax bracket for more of his income since he needed the money for his family. It was figured a single guy didn't need a tax break since he was only spending his money on hookers and blow. When you are not married the next higher tax bracket kicks in a lot sooner.

If when married you made a lot and your wife did not work (outside the home) or did not make as much you would take a hit when you become single because the next higher bracket would kick in sooner.

 

[churchmouse]

Roads, military, police, firemen. Other than that, no.

Bingo.

 

[wtburnette]

The way to think of it is the Leave it to Beaver era which is when 1ht 1954 Tax Code was adopted. The tax system was designed with Ward working full time and being the breadwinner while June stayed home caring for Wally and Beaver. So the tax brackets were set up so a married man stayed in the lower tax bracket for more of his income since he needed the money for his family. It was figured a single guy didn't need a tax break since he was only spending his money on hookers and blow. When you are not married the next higher tax bracket kicks in a lot sooner.

If when married you made a lot and your wife did not work (outside the home) or did not make as much you would take a hit when you become single because the next higher bracket would kick in sooner.

Makes sense from that perspective, certainly not in general...