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My office prepares about 275 individual tax returns and we're about 75% through the pile. A rough review of the results show that refunds have been up in 2021 over 2020 and prior years. A lot of that is due to the child tax credit, stimulus and a few other more minor factors. For fairly straightforward returns with 2 W-2 incomes being the primary income source, significant underpayments have generally been due to either a withholding error or bonuses/stock options being a wrench in the works.
And it used to be fairly easy to guesstimate the W-4 withholdings based on a quick review of a tax return, but no more. Believe it or not, the IRS withholding estimator is now the best way to dial in to your refund number. At the same time, everything has to be in sync on your return with no surprises for this to be effective. Unfortunately, there hasn't been a consistent year for most people in a while.
So you don't focus much on tax clients? Or do high net worth. We take on all comers, each of us do over 400 returns, and there are 5 of us. I'm over 200 myself now, I will be close to 400 on 4/15. I'm totally fawked this year, lost help, I'll be pulling a few all-nighters. I've been doing great mentally and physically so far, but if don't have a heart-attack by 4/15 it will be a miracle.
And now we (married filing jointly both work, no kids) somehow owe over $6,000. I don't understand wtf is going on. Owed $1400 in 2020 and owe over $6,000 for 2021. Aside from annual raises nothing else changed. Annoying as f***.Wife and I owed just over $1400.
No kids.
She’s pissed she’s getting no money back for the first time in many years. I told her I’m fine owing $1400 which will be spit 50/50 between us. As you said, close enough.
A lot better than 2019. I owed almost 5k because of a new job I started and F’d up the withholdings etc. Wife got 5k back (was a student) and gave it to me to pay it off. Made the necessary changes for 2020.
And now we (married filing jointly both work, no kids) somehow owe over $6,000. I don't understand wtf is going on. Owed $1400 in 2020 and owe over $6,000 for 2021. Aside from annual raises nothing else changed. Annoying as f***.
We only use turbotax but I told my wife we should probably pay a tax person for 2022 taxes just to see if TT is wrong?
I wondered if I should fill out line 4C on the W4 Extra Withholding to get more taxes taken out (assuming TT is correct...). A quick google search says you divide what you owe IRS ($6,000) by the number of pay periods left in the year? My wife claims when she ran through TT filing separately/single by herself she owed like $1200. So I'm the one owing like $5,000ish....
If that's true, I got 19 paychecks left this year. $5,000 / 19 = $263 as Extra Withholding
I know someone in the department who got promoted, and HR goofed up their withholdings. They didn't pay Federal or something goofy. Ended up owing $5k last year...And now we (married filing jointly both work, no kids) somehow owe over $6,000. I don't understand wtf is going on. Owed $1400 in 2020 and owe over $6,000 for 2021. Aside from annual raises nothing else changed. Annoying as f***.
We only use turbotax but I told my wife we should probably pay a tax person for 2022 taxes just to see if TT is wrong?
I wondered if I should fill out line 4C on the W4 Extra Withholding to get more taxes taken out (assuming TT is correct...). A quick google search says you divide what you owe IRS ($6,000) by the number of pay periods left in the year? My wife claims when she ran through TT filing separately/single by herself she owed like $1200. So I'm the one owing like $5,000ish....
If that's true, I got 19 paychecks left this year. $5,000 / 19 = $263 as Extra Withholding
Ohh shit. I don’t think mine is messed up? My W2 says I had I paid several thousands in Fed and state withholdingsI know someone in the department who got promoted, and HR goofed up their withholdings. They didn't pay Federal or something goofy. Ended up owing $5k last year...
Unless you guys made like $20k more YOY?
If so. Is your Department hiring? Kidding, but not really...
I would see a CPA right now. You can still file an amended return. If you're saying that adding in the 17K prize upped your taxes by $6K Fed and $1K MA, something is off. The 5% MA income tax on $17K should be $850 and to get to $6000 on the federal you’d have to be in the 35% marginal tax bracket (the second highest) which means you and your wife should have an adjusted gross income of $418,851 to $628,300. And if that’s the case, stop pissing about a mere $7K.Ohh shit. I don’t think mine is messed up? My W2 says I had I paid several thousands in Fed and state withholdings
My wife did win $17k last spring on the radio (Kiss 108). She was getting a $1000 refund until she entered the 1099 info for the winnings. That made her owe $1700 for 2021 - this was all done through TT filing separately/single just to see what she’d get. Then once she did jointly, it went up to $7000 (I previously said $6000 but I was off) total for Fed ($6k) and MA ($1k).
She’s saying it’s because of me that we owe $7k so she’s saying I need to pay the $5000ish and she pays the $2000ish.
I think we could really benefit from seeing a CPA
-I'd check your W4 withholding status. HR is a joke. Also your wifes W4.Ohh shit. I don’t think mine is messed up? My W2 says I had I paid several thousands in Fed and state withholdings
My wife did win $17k last spring on the radio (Kiss 108). She was getting a $1000 refund until she entered the 1099 info for the winnings. That made her owe $1700 for 2021 - this was all done through TT filing separately/single just to see what she’d get. Then once she did jointly, it went up to $7000 (I previously said $6000 but I was off) total for Fed ($6k) and MA ($1k).
She’s saying it’s because of me that we owe $7k so she’s saying I need to pay the $5000ish and she pays the $2000ish.
I think we could really benefit from seeing a CPA
Haha working for .gov is full of moments.I guess it’s good I got a $1k Covid bonus in my last paycheck….
And over the next couple months I’ll get retro pay now that our union finally has a contract with the state. I heard a 1.5% signing bonus plus retro pay going back to July 2020…that ought to cover my owed taxes.
Took forever and now the new contract expires in July of this year
So back to more delays on getting contract raises….
1K out to the feds....I mean...illegal aliens. Next year will be worse.....with no college. I say that but I wont be writing checks either. Wife and I also got way bigger bonuses this year.
Upped the 401K to 20%......10% of it going straight to the safe fund, as I'm nearing retiring. Better me than them even if I can't touch it for a while.
I would see a CPA right now. You can still file an amended return. If you're saying that adding in the 17K prize upped your taxes by $6K Fed and $1K MA, something is off. The 5% MA income tax on $17K should be $850 and to get to $6000 on the federal you’d have to be in the 35% marginal tax bracket (the second highest) which means you and your wife should have an adjusted gross income of $418,851 to $628,300. And if that’s the case, stop pissing about a mere $7K.
This is what it says on my paycheck-I'd check your W4 withholding status. HR is a joke. Also your wifes W4.
How do you get past the 401k cap?
She’s going to go through TT filing separately for her and then for me and see what the difference isThis is what it says on my paycheck
View attachment 605490
Makes no sense. I looked at last years W2 and it was $600 less withheld for fed and $300 less for state. Why the f*** I owe so much more this year is beyond me. Allowances haven't changed.
I made a few thousand more than the previous year.
And no my wife and I's combined income is only a fraction of $418,851
LOL, same. Despite making quarterly payment, taking no deductions and having an extra $250 taken out of ever paycheck, I owe just slightly less than I paid for the new Audi I bought in 2001. Not enough to buy an Audi now, but enough to pay for a new midrange Honda.ugh...I could buy a nice car with the checks going out today.
Willing to bet they cashed the checks they received WHEN they received them, though.Got a call from the guy from our senator’s office assigned to our case. Turns out the IRS is just now about to start opening mailed returns from last April. Unreal.
...
She does the taxes, and then I proofread them.
Only 2-3 times in over 35 years have I brought any value whatsoever to the table
beyond finding trivial typos or missing chickensh¡t deductions.
...
The IRS does pay interest on DELAYED refunds if I recallWilling to bet they cashed the checks they received WHEN they received them, though.