My wife and I make ~$450k per annum with no additional investments. Today we noted that we owed $11k in taxes. Does this make sense? Why is it so high when I pay taxes per month? Thanks!
If you make this much and don't know why you owe in taxes, perhaps you need some education.
The shit I read on this app makes me know that the tech bubble is real. 😔
You’re in the 32% tax bracket and if you don’t own a home. You have no additional deductions. Did you sell any stock? Here is the chart from the IRS. https://www.irs.gov/filing/federal-income-tax-rates-and-brackets
You need to tell box 2 on your w2, i.e. taxes withheld. Without that no one can tell what you owe makes sense.
I owe $30k from investments. How do you have no investments if you make $450k? no savings? It is probably from a bunch of 1099 income where there was no withholding.
Your work is probably deducting based on individual income. So if one of you is making under 178k they are probably deducting 22% only not 32%.
Just $11K ? Lol, something is totally wrong. It should be around 100K
I think OP meant he owed 11k of taxes at tax filing time over and above what is already withheld throughout the year.
Probably because of RSUs. Most sell to cover plans sell just enough to cover minimum tax withholding of 22% instead of 32%
This
You don’t withhold enough.
My W4 is showing married- filing jointly
Umm you should owe north of 80k not just 11k.
Context clues lead to the conclusion of its 11k owed onto of their monthly withholdings which likely make up the majority of their owed tax
A lot more than $80k. That would be 17-18%. They are in the 32% bracket on their last dollar. Plus state income taxes if they live in a garbage blue state like me.