Taxes - big jump this year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

They keep changing stuff and it really makes it difficult for every day folks. Most of us have lives and a million other things to think about like how to feed your family or pay for childcare.

People who make enough to have a 100k tax bill aren't "everyday folks."

Stop judging

Stop complaining.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

They keep changing stuff and it really makes it difficult for every day folks. Most of us have lives and a million other things to think about like how to feed your family or pay for childcare.

They don't change things mid year. We know at the beginning of every year, and these particular hikes were well-known. Anyone who didn't know had his buried deep in the sand. And the "We have lives" argument is bunk: we all have bills and responsibilities, taxes are no different.
You have no excuse.

It's impossible to predict on January 1 how investments will perform during the year. Directly impacts tax liability.

True. But you know on dec 31 how they performed and have until April to plan and save. Also, aside from massive volatility, you can make basic predictions from the previous year's return. In addition, your investment manager and or tax professional can help you prepare. Ours did.

Everybody should be doing these things, along with not waiting until April, to be better prepared. https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/Top-8-Year-End-Tax-Tips/INF12120.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

They keep changing stuff and it really makes it difficult for every day folks. Most of us have lives and a million other things to think about like how to feed your family or pay for childcare.

They don't change things mid year. We know at the beginning of every year, and these particular hikes were well-known. Anyone who didn't know had his buried deep in the sand. And the "We have lives" argument is bunk: we all have bills and responsibilities, taxes are no different.
You have no excuse.

It's impossible to predict on January 1 how investments will perform during the year. Directly impacts tax liability.

True. But you know on dec 31 how they performed and have until April to plan and save. Also, aside from massive volatility, you can make basic predictions from the previous year's return. In addition, your investment manager and or tax professional can help you prepare. Ours did.

Everybody should be doing these things, along with not waiting until April, to be better prepared. https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/Top-8-Year-End-Tax-Tips/INF12120.html

Thanks for the tip. Unlike you many of us can't pull 20k out of our ass in 3 months

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

They keep changing stuff and it really makes it difficult for every day folks. Most of us have lives and a million other things to think about like how to feed your family or pay for childcare.

They don't change things mid year. We know at the beginning of every year, and these particular hikes were well-known. Anyone who didn't know had his buried deep in the sand. And the "We have lives" argument is bunk: we all have bills and responsibilities, taxes are no different.
You have no excuse.

It's impossible to predict on January 1 how investments will perform during the year. Directly impacts tax liability.

True. But you know on dec 31 how they performed and have until April to plan and save. Also, aside from massive volatility, you can make basic predictions from the previous year's return. In addition, your investment manager and or tax professional can help you prepare. Ours did.

Everybody should be doing these things, along with not waiting until April, to be better prepared. https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/Top-8-Year-End-Tax-Tips/INF12120.html

Thanks for the tip. Unlike you many of us can't pull 20k out of our ass in 3 months

If you're in the income bracket that saw a 20K increase then your ass should be packed with a ton of cash.

[Anonymous]

Our total tax bill (states plus Fed) was over $100 but I still think we are "everyday folk". Also, we experienced a $20k+ increase from last year. However, the "ass should be packed with a ton of cash" thing is not true for us either. The tax bill this year really hurt and I'm fully aware that we could have seen it coming.

I've been doing the math. I'm the breadwinner and I make $200k. I just figured out that I could take a job for $150k and the net impact (after taxes) would be miniscule. I've been thinking about looking for something less demanding and this new tax structure is the final straw for me.

[Anonymous]

Anonymous wrote:Our total tax bill (states plus Fed) was over $100 but I still think we are "everyday folk". Also, we experienced a $20k+ increase from last year. However, the "ass should be packed with a ton of cash" thing is not true for us either. The tax bill this year really hurt and I'm fully aware that we could have seen it coming.

I've been doing the math. I'm the breadwinner and I make $200k. I just figured out that I could take a job for $150k and the net impact (after taxes) would be miniscule. I've been thinking about looking for something less demanding and this new tax structure is the final straw for me.

A. There is no "new" tax structure. You owed more because you earned more (most likely in capital gains). There has been no change to the tax code that wasn't well communicated in plenty of time for you to prepare.

B. if you owed $100k, you are so far from "everyday folk" it hurts.

C. If you make $200k and can't find $20k to pay your taxes, you're either a Kardashian or an even worse moron.

Sorry, but this thread is painful. Get a clue, people. You are rich because you live in America. Be grateful and pay your fucking taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our total tax bill (states plus Fed) was over $100 but I still think we are "everyday folk". Also, we experienced a $20k+ increase from last year. However, the "ass should be packed with a ton of cash" thing is not true for us either. The tax bill this year really hurt and I'm fully aware that we could have seen it coming.

I've been doing the math. I'm the breadwinner and I make $200k. I just figured out that I could take a job for $150k and the net impact (after taxes) would be miniscule. I've been thinking about looking for something less demanding and this new tax structure is the final straw for me.

A. There is no "new" tax structure. You owed more because you earned more (most likely in capital gains). There has been no change to the tax code that wasn't well communicated in plenty of time for you to prepare.

B. if you owed $100k, you are so far from "everyday folk" it hurts.

C. If you make $200k and can't find $20k to pay your taxes, you're either a Kardashian or an even worse moron.

Sorry, but this thread is painful. Get a clue, people. You are rich because you live in America. Be grateful and pay your fucking taxes.

You are correct. My use of "tax structure" was inappropriate. Our HHI was $330 in 2012 and in 2013 and taxes went way up, so there are new taxes - however you want to describe it. Sorry, I still feel like everyday folk. We are certainly not special because we make $330. We have to budget just like everybody else. And yes, we can't find $20k to pay our tax bill. That makes us poor planners, but not morons.

[Anonymous]

22:10 again, I forgot to mention that we had no capital gains.

[Anonymous]

Anonymous wrote:22:10 again, I forgot to mention that we had no capital gains.

Seriously? You have nothing invested outside retirement accoounts?

Wow. Cap gains are what killed us this year. Can't complain - it's a fraction of what we made in the market. I just assumed that's why everyone was so upset - they failed to plan for a banner year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our total tax bill (states plus Fed) was over $100 but I still think we are "everyday folk". Also, we experienced a $20k+ increase from last year. However, the "ass should be packed with a ton of cash" thing is not true for us either. The tax bill this year really hurt and I'm fully aware that we could have seen it coming.

I've been doing the math. I'm the breadwinner and I make $200k. I just figured out that I could take a job for $150k and the net impact (after taxes) would be miniscule. I've been thinking about looking for something less demanding and this new tax structure is the final straw for me.

A. There is no "new" tax structure. You owed more because you earned more (most likely in capital gains). There has been no change to the tax code that wasn't well communicated in plenty of time for you to prepare.

B. if you owed $100k, you are so far from "everyday folk" it hurts.

C. If you make $200k and can't find $20k to pay your taxes, you're either a Kardashian or an even worse moron.

Sorry, but this thread is painful. Get a clue, people. You are rich because you live in America. Be grateful and pay your fucking taxes.

You are correct. My use of "tax structure" was inappropriate. Our HHI was $330 in 2012 and in 2013 and taxes went way up, so there are new taxes - however you want to describe it. Sorry, I still feel like everyday folk. We are certainly not special because we make $330. We have to budget just like everybody else. And yes, we can't find $20k to pay our tax bill. That makes us poor planners, but not morons.

We are Feds with frozen salaries so our numbers really have not changed from year to year, about $310K. We received a small refund last year ($1000) and paid a small amount this year ($500), and we refinanced our mortgage at the very end of 2012 and did not increase withholding so I was expecting more pain. We always get hit with the AMT, and my thought was that is why it was not so painful even with the reduced mortgage deduction and the new Medicare tax. I did use the IRS tax calculator a few years ago to figure out how much to increase our withholding so DH and I both have zero exemptions and have additional taken out each paycheck. It would be very painful to get an unexpected $20K tax bill but I don't understand how you can make an error of that size on a $330K salary if they are withholding at the appropriate level, did you owe nothing on the same withholding schedule the prior year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:22:10 again, I forgot to mention that we had no capital gains.

Seriously? You have nothing invested outside retirement accoounts?

Wow. Cap gains are what killed us this year. Can't complain - it's a fraction of what we made in the market. I just assumed that's why everyone was so upset - they failed to plan for a banner year.

Correct - nothing outside retirement accounts for now. We max out the 401(k) contributions, but that is it for savings. We hope to do better once the kids get out of expensive daycare and into public school. I think that add'l taxes on self-employment earnings were the main contributors to our increase in 2013.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our total tax bill (states plus Fed) was over $100 but I still think we are "everyday folk". Also, we experienced a $20k+ increase from last year. However, the "ass should be packed with a ton of cash" thing is not true for us either. The tax bill this year really hurt and I'm fully aware that we could have seen it coming.

I've been doing the math. I'm the breadwinner and I make $200k. I just figured out that I could take a job for $150k and the net impact (after taxes) would be miniscule. I've been thinking about looking for something less demanding and this new tax structure is the final straw for me.

A. There is no "new" tax structure. You owed more because you earned more (most likely in capital gains). There has been no change to the tax code that wasn't well communicated in plenty of time for you to prepare.

B. if you owed $100k, you are so far from "everyday folk" it hurts.

C. If you make $200k and can't find $20k to pay your taxes, you're either a Kardashian or an even worse moron.

Sorry, but this thread is painful. Get a clue, people. You are rich because you live in America. Be grateful and pay your fucking taxes.

You are correct. My use of "tax structure" was inappropriate. Our HHI was $330 in 2012 and in 2013 and taxes went way up, so there are new taxes - however you want to describe it. Sorry, I still feel like everyday folk. We are certainly not special because we make $330. We have to budget just like everybody else. And yes, we can't find $20k to pay our tax bill. That makes us poor planners, but not morons.

We are Feds with frozen salaries so our numbers really have not changed from year to year, about $310K. We received a small refund last year ($1000) and paid a small amount this year ($500), and we refinanced our mortgage at the very end of 2012 and did not increase withholding so I was expecting more pain. We always get hit with the AMT, and my thought was that is why it was not so painful even with the reduced mortgage deduction and the new Medicare tax. I did use the IRS tax calculator a few years ago to figure out how much to increase our withholding so DH and I both have zero exemptions and have additional taken out each paycheck. It would be very painful to get an unexpected $20K tax bill but I don't understand how you can make an error of that size on a $330K salary if they are withholding at the appropriate level, did you owe nothing on the same withholding schedule the prior year?

Only one of our salaries is subject to withholding. I have some ownership in the company so my earnings are characterized as being from self-employment. I write a check every quarter for estimated taxes and I totally screwed that up last year - I was late to learn that our 2012 tax bill was not going to approximate our 2013 tax bill. On the bright side, I won't make that mistake again!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

So all of the other potential customers for landscaping don't have to pay taxes? I wouldn't trust you to be a judge of who has common sense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

So high taxes can hurt jobs? Someone needs to bring this up to the powers that be.

No, because the landscaper will simply find a client who is better prepared and ha s refund to blow.

All this and the other posts means is that there are some unprepared people out there. You should be preparing and saving from January for the highest/worst case scenario for taxes. You have a good idea of your income, your tax bracket, and the changes in the tax code at the beginning of every year.

None of this should ever be that big a surprise for people at these income levels and for anyone with a modicum of common sense.

They keep changing stuff and it really makes it difficult for every day folks. Most of us have lives and a million other things to think about like how to feed your family or pay for childcare.

People who make enough to have a 100k tax bill aren't "everyday folks."

Stop judging

Stop complaining.

I don't agree with this pp on much, but there is a valid point here. During the election, Obama was very clear that he planned to raise taxes on the "rich," which he defined as any family making over $250,000 (at one point it was $150,000). If you voted for him, you can't complain.

[Anonymous]

Just want to thank OP for this thread, as it reminded me to do a quick estimate of our 2014 taxes and adjust withholding according. Forewarned is forearmed!