Huge (for us) tax bill. What went wrong?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did you get a large bonus during the year, OP?

No, I work a non profit who does not give out bonuses.

$190k at a non profit? is that still quite high or just avg nowadays?

[Anonymous]

Biden tax hikes. Build back better…

[Anonymous]

Anonymous wrote:Biden tax hikes. Build back better…

Did you learn that on Fox. Please tell us about these tax hikes. Be specific.

[Anonymous]

Anonymous wrote:Biden tax hikes. Build back better…

Weak trolling. I'm happy to blame Biden for inflation, but Christ, don't make up stupid bullshit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are you making that income for the first time? Is it the first time you owe so much in taxes? How come you didn’t realize that your take home per pay period had increased by that much?
25k is an insane amount to owe at that income.

No, same amount last year and we owed $6k. So we adjust up and now here we are with $26k.

No investments minus 401(k).

And you didn't notice that your take home paycheck was substantially higher than last year? The blame is entirely on you.
I would understand if the difference was lower, $2k or $3k. But $25k??? There is no way you missed that on your paycheck.

So my take home wasn’t higher, in fact it was a little lower. My take home is approximately $4800/ pay period. After 401(k)/FSA/ etc my gross income was $170k.

If you didn’t change your income significantly or your tax withholding significantly something is being calculated wrong. How much was withheld from your paycheck compared to last year you can look at this year and last years W2 to compare.

On a per paycheck basis, 4800 net (assuming you are paid 24 times per year?) your gross pay from 190k should be 7916, minus your 401k/fsa you should have around 6850 taxable. So you’re paying about 2850 in other deductions (healthcare, dental, etc…) and taxes. How much federal tax is withheld from that?

I don’t think anyone is paid 24 times per year, are they? It’s either 12 or 26.

Plenty of people are paid bimonthly. Maybe you should stay away from financial advice forums if you don't know this?!

Actually, I've never heard of anyone who's paid once every two months (which is what bimonthly means). Maybe YOU should refrain from posting?

[Anonymous]

Taxes are awful for salary people, rich people pay 1-10% because they are taxes on investment.

[Anonymous]

Anonymous wrote:Taxes are awful for salary people, rich people pay 1-10% because they are taxes on investment.

Taxes are high on salary but when it changes significantly from one year to the next it can be frustrating and people look for answers.

This reminds me of the whole vanguard debacle a couple years ago which caused large tax bills from capital gains if you invested in their target retirement date funds in your brokerage account.

I hope OP comes back with an update.

[Anonymous]

Ok this is terrifying to me because this is the first year our HHI will be $250k. We were at $130k the last 5 or so years. We definitely do not have $25k to pay in taxes.

[Anonymous]

Anonymous wrote:Ok this is terrifying to me because this is the first year our HHI will be $250k. We were at $130k the last 5 or so years. We definitely do not have $25k to pay in taxes.

OP's situation is not really possible. Either she miscalculated her tax returns and owes far less, or her employer failed to withhold any taxes and she failed to notice that she didn't have any tax withholding last year.

[Anonymous]

I think the OP is missing something. We have been told that the gross pay is consistent.

I would want to know what your total tax liability was in 2021 compared to what you are seeing for 2022. That will tell you/us if it is a withholding issue, or something else.

[Anonymous]

Anonymous wrote:Ok this is terrifying to me because this is the first year our HHI will be $250k. We were at $130k the last 5 or so years. We definitely do not have $25k to pay in taxes.

your income doubled from $130 to $250K but don't have $25k to pay taxes? what?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are you making that income for the first time? Is it the first time you owe so much in taxes? How come you didn’t realize that your take home per pay period had increased by that much?
25k is an insane amount to owe at that income.

No, same amount last year and we owed $6k. So we adjust up and now here we are with $26k.

No investments minus 401(k).

And you didn't notice that your take home paycheck was substantially higher than last year? The blame is entirely on you.
I would understand if the difference was lower, $2k or $3k. But $25k??? There is no way you missed that on your paycheck.

So my take home wasn’t higher, in fact it was a little lower. My take home is approximately $4800/ pay period. After 401(k)/FSA/ etc my gross income was $170k.

If you didn’t change your income significantly or your tax withholding significantly something is being calculated wrong. How much was withheld from your paycheck compared to last year you can look at this year and last years W2 to compare.

On a per paycheck basis, 4800 net (assuming you are paid 24 times per year?) your gross pay from 190k should be 7916, minus your 401k/fsa you should have around 6850 taxable. So you’re paying about 2850 in other deductions (healthcare, dental, etc…) and taxes. How much federal tax is withheld from that?

I don’t think anyone is paid 24 times per year, are they? It’s either 12 or 26.

Plenty of people are paid bimonthly. Maybe you should stay away from financial advice forums if you don't know this?!

Actually, I've never heard of anyone who's paid once every two months (which is what bimonthly means). Maybe YOU should refrain from posting?

Bimonthly can mean either occurring every two months or occurring twice a month: https://www.merriam-webster.com/dictionary/bimonthly

[Anonymous]

Anonymous wrote:Biden tax hikes. Build back better…

Actually, around here, the problem is the Trump “tax cuts” which screwed blue states by eliminating the SALT tax deduction.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are you making that income for the first time? Is it the first time you owe so much in taxes? How come you didn’t realize that your take home per pay period had increased by that much?
25k is an insane amount to owe at that income.

No, same amount last year and we owed $6k. So we adjust up and now here we are with $26k.

No investments minus 401(k).

And you didn't notice that your take home paycheck was substantially higher than last year? The blame is entirely on you.
I would understand if the difference was lower, $2k or $3k. But $25k??? There is no way you missed that on your paycheck.

So my take home wasn’t higher, in fact it was a little lower. My take home is approximately $4800/ pay period. After 401(k)/FSA/ etc my gross income was $170k.

If you didn’t change your income significantly or your tax withholding significantly something is being calculated wrong. How much was withheld from your paycheck compared to last year you can look at this year and last years W2 to compare.

On a per paycheck basis, 4800 net (assuming you are paid 24 times per year?) your gross pay from 190k should be 7916, minus your 401k/fsa you should have around 6850 taxable. So you’re paying about 2850 in other deductions (healthcare, dental, etc…) and taxes. How much federal tax is withheld from that?

I don’t think anyone is paid 24 times per year, are they? It’s either 12 or 26.

Plenty of people are paid bimonthly. Maybe you should stay away from financial advice forums if you don't know this?!

Actually, I've never heard of anyone who's paid once every two months (which is what bimonthly means). Maybe YOU should refrain from posting?

Try buying a dictionary or using the Google. I love when stupid people double down on their stupidity.

https://www.indeed.com/career-advice/pay-salary/bi-monthly-pay

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biden tax hikes. Build back better…

Actually, around here, the problem is the Trump “tax cuts” which screwed blue states by eliminating the SALT tax deduction.

Those tax cuts were an issue for many because it screwed up the paycheck withholding.