We end up paying 14k to the bastards - not even sure why, because our paychecks weren't that bloated, and our allowances are also right. We also bought a home and paid a shitton in property tax. Our combined income is 320k just as a note. What are your results this year?
Haha. Good good. You pay taxes. I enjoy!
My guess is your average federal tax is around 20%. Does that seem high to you?
The Tax Cuts and Jobs Act also limited deductions for state income and property taxes
It actually expanded them (to $10K) if you paid AMT in the past (where you got $0 of deduction).
Your allowances aren't right or you had a ton of capital gains that you should have planned for.
Had to pay $3k or so. I think my RSUs vesting fucked up the withholding somehow... idk. Anyway I redid my W-4 carefully so hopefully it won't happen again next year
Vesting rsus are okay. When you sell that's what starts changing things. Edit: I guess it depends on your top tax bracket. Irs Guidance has bonus withholding done at 22% I think
I sell immediately so there's no capital gains. That's not the issue. The withholding amounts for each paycheck are based on the employer's estimate of your effective tax rate, but that estimate is based on your annual salary until such time as your RSUs vest (since the stock price at vesting is unknown in advance). At that point, the estimate may shoot up, increasing your withholding per paycheck in absolute dollars. But if this happens too late in the year, you'll have been underwithheld for most of the year. Or actually the estimate may just be kept based on your salary alone - not sure what the legal obligations are for employers here. RSUs themselves are apparently withheld (or sold to cover withholding) at a high flat rate, I guess to offset the above mentioned effect, but maybe it was insufficient in my case, or something...
The metric that matters is your effective tax rate. What was your effective tax rate?
Saying you paid 14k is meaningless and JFYI, you paid much more than 14k. May be you should increase your deductions, such that you get a refund instead of having to pay next year so that next year you can say “you got back 14k” and feel happier !?!
You probably mean withholdings not deductions, though increasing deductions would also help, I guess
I had to pay close to your amount too with similar income. It seems like the deduction cut for state taxes did it. Still seems like a lot. Anyone else seeing the same thing?
Your home was probably worth more than 750k and you paid more than 10k in property taxes so yea duh
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You do realize 320k cumilative salary ...you are probably top 5% on salary ladder. So paying shit load taxes are good problem to have ( I hate paying shit load to Uncle Sam but I am happy that I am on top 5% )