Hi there, my coworker and I plugged in our W-2s and appropriate deductions into online software that we have used in the past to file our taxes, but this year the amounts owed were ridiculously high (like double digits high). We both only claimed one deduction as appropriate, and crossed only 1 additional tax bracket (3% more). company payroll says i should have adjusted mine to 0 but i dont understand why if we are supposed to account for ourself as a deduction. anyone in similar situation? happy to elaborate on exact digits via dm if need to update: not married, no significant stocks involved here
Did you get any stock or bonuses? Did you withhold enough for those?
Our tax preparer told us this was going to happen to a lot of people this year because of the changes to the tax code. She said most employers wouldn’t be adjusting the withholding enough to cover the taxes and we needed to adjust it ourselves.
Is your tax preparer reasonable in terms of fees? I really need to get help now but with the much unexpected $17k owed i cant see affording my next dinner pretty much
Practically free since we are assuming she’s maximizing our return. She charges a few hundred dollars for a yearly consultation and tax prep. Our returns are pretty simple, though, aside from rsu/stock option stuff.
You need to put more into your 401k, buy a house and talk to a financial planner. Maybe start a side business and rack up some business expenses! Thanks trump
Already doing 401k, pretax health etc. Cant afford a house just yet but even when i do there are now super low limits on writing off expenses and bay area prices are def above those limits already by far
Taxes savings on houses are limited now under the Tax Cuts and Jobs Act. Most people will end up using the standard deduction, particularly HCOL areas such as California.
I owe 57k
Tweet angrily at POTUS.
Fellow Dutonian, also note that if you sold off ESPP shares that would add more tax burden.
Put in my W-2 in the tax software. Owe $200k to Uncle Sam 😢
Alright, now you're just flexing lol
Hi hehdidij, I think you added two zeros accidently. 😛
What's the effective tax rate as per your tax software? Any what the total household income?
Supplemental withholding
^^^ check your RSU vests
They already are taxed at highest percentage