Married filing jointly AGI 500k Bought a house in 2018 (was renting before) No rental or business income, RSUs only Lived in Bay Area whole year TurboTax says I owe 25k federal because I didn’t withhold enough.
Yeah you owe money but be happy because you are technically rich. Remember the average family income is still under 50k. So you got 2 Peeps for what it costs most of America to take care of 40.
In a similar position. Owe about $15k federal. I am considering talking to live CPA on TurboTax. They provide that for extra charge. And you can do that as many times you want it seems.
Probably the RSUs and any bonuses. There's a flat 22% federal withholding on them, which is too low once you reach a certain point.
If you sold any RSUs in 2018, check if the cost basis had been reported - sometimes it isn’t reported automatically and you need to manually enter it.
True for whatever reason. All the software I've ever used fails to import cost basis. But the truth is trump changed the withholding requirements. Now they are low enough that a lot more people will owe who use to get refunds. Also you can no longer deduct property interest and state tax at the same level.
Trump has no business changing the withholding requirements. IMO. It must be your w4
Unless you have a complicated tax situation (ISO/NSO exercises, claiming amt credit from a previous year etc), I don't see much value in hiring a cpa. They charge you a hefty sum as well.
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Supplemental withholding rate is 22% now. TurboTax is right.