Anyone else getting slammed with a huge tax payment this year?!

[jsteele]

Anonymous wrote:The tax on healthcare is planned to start next year and the benefits not until 2014

I'm not sure what you mean by "tax on healthcare" unless you consider indoor tanning to be healthcare. Next year, the Medicaid payroll tax will increase for those making over $200,000 (individually) or $250,000 (joint filers). The tax on high-end plans doesn't kick in until 2018. Benefits actually start this year.

[Anonymous]

we apparently just phased out of the childcare tax deduction because we crossed a certain income for the first time this year. We also got a signing bonus for my husband's new job (the one with the raise that brought us over the income limit) that did not have taxes taken out. Had we not gotten that - we would have basically broken even. Instead, we owe $3700.

We have to figure something out for next year since we no longer will be able to deduct childcare expenses OR my husband's college tuition (since he is finally graduating)

I am just thankful that we actually have this money to send to the government, but it means I'm not comfortable spending any more of our savings on the trip I was daydreaming about once hubby finally finished school and before adding #2.

Boo, just boo.

[Anonymous]

Gotta say it - "How's all that hope and change working out for you?"

[Anonymous]

Glad you asked, 23:46! The answer is -- it's working out AWESOME!! Yeah, my taxes went up a little bit, but not nearly as much as the deficit did thanks to the spending-like-drunken-fools approach of the previous administration. And God knows it's nice to actually _have_ both actual hope and actual positive change on a regular basis -- it's downright refreshing. I just wish Congress would get out of the President's way more regularly.

[Anonymous]

Hey PP, I agree with you on positive progress--- but to be fair, healthcare was stagnant for 12 months before Pelosi had a sit down with Obama and tolld him how to ball up and get it done. Obama's political skills have been very very weak, and Pelosi is the one who really deserves the credit here.

[Anonymous]

Gee, I wish I earned enough for a higher marginal tax rate.

[Anonymous]

OP, you should see a good accountant. If they can save you two grand for a fee of a few hundred, it's totally worth it.

[Anonymous]

I have you so beat OP.

I don't even want to write the amount. Our checking and savings will be wiped out between taxes and payment into retirement. I feel sick. And it's all due to some weird accounting rules since my husband is technically an owner of a business (we are paying taxes on money he has not yet earned).

[Anonymous]

Anonymous wrote:we apparently just phased out of the childcare tax deduction because we crossed a certain income for the first time this year. We also got a signing bonus for my husband's new job (the one with the raise that brought us over the income limit) that did not have taxes taken out. Had we not gotten that - we would have basically broken even. Instead, we owe $3700.

We have to figure something out for next year since we no longer will be able to deduct childcare expenses OR my husband's college tuition (since he is finally graduating)

I am just thankful that we actually have this money to send to the government, but it means I'm not comfortable spending any more of our savings on the trip I was daydreaming about once hubby finally finished school and before adding #2.

Boo, just boo.

SInce you have phased out of the childcare tax deduction, you should see if one of your employers offers the childcare FSA. Then you can shelter up to $5000 from inclusion in your taxable income.

[Anonymous]

We've always gotten a nice refund and this year find that we owe several thousand in taxes because of the AMT. And we have an accounting firm preparing our taxes and have gone over everything with a fine tooth comb. Unfortunately as our income increased, the personal exemption phase out under the AMT increases so that we almost received no benefit from it this year which is why we owed this year. We're adjusting our withholdings next year so that we can get back to being right around even or getting a small amount back but not having to pay.

[Anonymous]

Anonymous wrote:

SInce you have phased out of the childcare tax deduction, you should see if one of your employers offers the childcare FSA. Then you can shelter up to $5000 from inclusion in your taxable income.

Yeah, we have almost no benefits at either of our jobs. My husband was lucky to get his new employer to cover health insurance - they were going to have us get our own and give us money out of pocket to pay back....until they found out exactly how much individual health insuarance for a family of 3 is. Yeah, we have NO more benefits through his employer.

I work PT and my employer offers health/dental insurance (which I don't use) and a Simple IRA. Nothing else.

I'm going to try to talk to some accountant friends and see what they have to say about our tax situation. I had no idea that the childcare tax credit went away at a certain income (I think we brought in $125K including $15K in bonuses) and I was thinking that would balance out the tax that WASN'T taken out of the signing bonus, part of which was meant to pay back my husband's previous company for a year's worth of tuition reimbursement.

Yeah, we basically just got screwed this year. We probably just need to adjust withholding a little to make up for the deductions we are no longer eligible for. And we're planning to add another child next year, so that should help in 2011, but not 2010.

[Anonymous]

Anonymous wrote:Glad you asked, 23:46! The answer is -- it's working out AWESOME!! Yeah, my taxes went up a little bit, but not nearly as much as the deficit did thanks to the spending-like-drunken-fools approach of the previous administration. And God knows it's nice to actually _have_ both actual hope and actual positive change on a regular basis -- it's downright refreshing. I just wish Congress would get out of the President's way more regularly.

You're funny! This administration is downright thrifty...fiscally conservative comes to mind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, we got an 8k tax bill for Fed. Our tax guy said that with the upcomming changes that are sure to happen for us to expect, if we get raises, to only count on 50% of that hitting our pockets...but heck, I hear that "the rich" don't pay their fair share....maybe us forking over 70% of our income will placate the masses.

50%? We made just over $250K and paid roughly 20% in taxes. Then again, who knows how much we would pay if we made more.

We make about 325 and our effective tax rate is under 20% (I think around 18%) for federal. We don't have any crazy deductions or do any kind of "screwy" math, either.

[Anonymous]

Anonymous wrote:OP, you should see a good accountant. If they can save you two grand for a fee of a few hundred, it's totally worth it.

Or they might not... A friend didn't like the numbers that Turbo Tax calculated for her (a big payment), so she hired an acountant, and $200+ later found out that he calculated the exact same thing as TT. Her taxes were very simple too, just W-2's and maybe some interest income type stuff, they don't own a property so no mortgage etc. The more complicated the tax situation, the more there room for some "creativity".

[Anonymous]

Anonymous wrote:Yes, we got an 8k tax bill for Fed. Our tax guy said that with the upcomming changes that are sure to happen for us to expect, if we get raises, to only count on 50% of that hitting our pockets...but heck, I hear that "the rich" don't pay their fair share....maybe us forking over 70% of our income will placate the masses.

Nobody is taxed at 70% of their income or even 50% of their income (and this is coming from somebody in the highest tax bracket).