Just did taxes...annoyed. Other people in the same boat?

[Anonymous]

Anonymous wrote:We owe several grand more this year vs. last year, on an unchanged income except for COLA.

Question is did your tax rate go up or down? its meaningless to say that you owe more in April as you might have paid less over the course of the year.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:Yes. It happened to us and you can read our example and those from others in other threads. I’m our case we went from a small refund or just about being even to owing $5700. We didn’t realize the extent of the changes and we are far from stupid.

What is your income bracket?

Most of dc are in the upper 5 to 10% income range that all of dcum wants to pay more taxes.

HHI $180k

So upper class, the range that should be be paying more in taxes.

That’s not as “upper class” in NoVA as it is many other places. I don’t know that I’d say it is upper class for my area.

Most college educated folks in the greater DC area should be hitting 100k by 30-35. With two parents working that's a very easy threshold to hit and is not upper class

Some interesting factoids from the CAFR, the annual audit of D.C.'s finances: Per capita income in D.C. in 2009 was $67,377, while in 2018 it climbed to $82,170. In '09, people making more than $100k were 67% of all D.C. tax filers. In 2018, they were 77% of all filers.

77% of DC can't be upper class

DC isn’t NoVA.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:Yes. It happened to us and you can read our example and those from others in other threads. I’m our case we went from a small refund or just about being even to owing $5700. We didn’t realize the extent of the changes and we are far from stupid.

What is your income bracket?

Most of dc are in the upper 5 to 10% income range that all of dcum wants to pay more taxes.

HHI $180k

So upper class, the range that should be be paying more in taxes.

That’s not as “upper class” in NoVA as it is many other places. I don’t know that I’d say it is upper class for my area.

You are making 2 to 3x what middle class families make.

Yes, you are upper class.

I didn’t disagree with that. I understand. Too bad there isn’t some type of cost of living adjustment.

There is. It's called "you have plenty of money to pay for a moving van and some boxes, so find a place to live with a lower cost of living." You can also lobby your state and local governments to reduce their taxes, since SALT deductions are capped and Virginia has a windfall from not adjusting its rules once the feds did--see https://www.washingtonpost.com/local/virginia-politics/the-12-billion-question-in-virginia-just-how-much-money-does-the-state-have-to-spend/2018/12/24/31007d06-046b-11e9-9122-82e98f91ee6f_story.html

So if I move and my pay is cut in half, how is that any better?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:Yes. It happened to us and you can read our example and those from others in other threads. I’m our case we went from a small refund or just about being even to owing $5700. We didn’t realize the extent of the changes and we are far from stupid.

What is your income bracket?

Most of dc are in the upper 5 to 10% income range that all of dcum wants to pay more taxes.

HHI $180k

So upper class, the range that should be be paying more in taxes.

That’s not as “upper class” in NoVA as it is many other places. I don’t know that I’d say it is upper class for my area.

Most college educated folks in the greater DC area should be hitting 100k by 30-35. With two parents working that's a very easy threshold to hit and is not upper class

“Most” I guess is key. I’m in Fairfax Co. DW and I are both in our upper 40’s. We’ve been here 26 years. We do ok but neither one of us are making six figures. I guess we are upper class by some definitions.

[Anonymous]

In Feb 2018, when I got my 1st paycheck with the new withholding, had more than a $400 difference. My DH had a similar change. There was no way we were going to pay $18K less in federal taxes.

We adjusted our withholding so that we would not have the liability this year.

Look back to threads from last February - and you will see a lot of conversations on this.

It was a political ploy - that the tax withholding tables were less aggressive. Last Feb - the conversation was all about how great the tax cuts were - look at the change in my paycheck. Now people are - those tax cuts were NBD.

But Trump was able to anchor the conversation - because people saw more money in their paychecks.

Also - tax withholding tables now come from Treasury - not IRS. This is political.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The rich got tax cuts. The middle class got tax withholding cuts.

They'll have to pay back those "withholding cuts" now. MAGA!

2% tax cut, 8% withholding cut. Are you tired of all the winning?

[Anonymous]

Anonymous wrote:

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Anonymous wrote:Oh well, you owe the same amount anyway, so what’s the big deal? Yes, we also got hit with a big end of the year tax bill, but our overall taxes went way down, so I really see no reason to complain. The difference is we didn’t give the government a no interest loan for once, instead they gave us one!

You are not a drama queen.

OP is.

Well, some people's taxes didn't go way down overall. We are paying more and our HHI is under 200k.

We paid more taxes. HHI 250,000

[Anonymous]

Anonymous wrote:We owe several grand more this year vs. last year, on an unchanged income except for COLA.

But did your actual taxes go up vs how much you paid at tax time? It depends on how extensive your tax deductions were last year. If you had a ton of deductions, then maybe you pay more in taxes due to the decrease in SALT and pushing most people into the new standard deduction. Look at the table on pages 5/6. The tax rate went down for almost all tax brackets.

Also, check your withholding. Did your paychecks go up, e.g. you paid less in withheld taxes and so owe more? Or did your withholding stay the same and you owed more at tax time?

[Anonymous]

Anonymous wrote:the irs withholding tables were totally wrong for many people

i owe 9k, last year got a 4k refund

luckily i had it all saved expecting something like this but will be very unhappy if they actually enforce a penalty

We have it saved, but not specifically for this. We have adjusted our withholding for this year and canceled planning for a 25th wedding anniversary trip for this summer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:the irs withholding tables were totally wrong for many people

i owe 9k, last year got a 4k refund

luckily i had it all saved expecting something like this but will be very unhappy if they actually enforce a penalty

We have it saved, but not specifically for this. We have adjusted our withholding for this year and canceled planning for a 25th wedding anniversary trip for this summer.

The people posting on this thread now are the type of people who do their taxes in February. Wait until the majority of the US population (who wait til late March/April) realize that they've been withholding too little and their expected refund is actually a required tax payment.

[Anonymous]

I feel like we've been lied to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:the irs withholding tables were totally wrong for many people

i owe 9k, last year got a 4k refund

luckily i had it all saved expecting something like this but will be very unhappy if they actually enforce a penalty

We have it saved, but not specifically for this. We have adjusted our withholding for this year and canceled planning for a 25th wedding anniversary trip for this summer.

The people posting on this thread now are the type of people who do their taxes in February. Wait until the majority of the US population (who wait til late March/April) realize that they've been withholding too little and their expected refund is actually a required tax payment.

17:56 here.
We are going to file the state’s $1,100 refund which we will then use later to help offset what is owed to the federal.

[Anonymous]

This was predicted but Republicans pushed to have businesses change withholding on a quick timeline. Not a conspiracy theory - was a known strategy.

https://www.washingtonpost.com/business/economy/trump-administration-opts-for-speed-over-accuracy-in-implementing-new-tax-law/2018/01/10/88221d76-f493-11e7-b34a-b85626af34ef_story.html?utm_term=.40dd3d01d276

[Anonymous]

Anonymous wrote:I feel like we've been lied to.

Nope. A lot of people were yelling about this last year. You weren't paying attention.

[Anonymous]

Anonymous wrote:This was predicted but Republicans pushed to have businesses change withholding on a quick timeline. Not a conspiracy theory - was a known strategy.

https://www.washingtonpost.com/business/economy/trump-administration-opts-for-speed-over-accuracy-in-implementing-new-tax-law/2018/01/10/88221d76-f493-11e7-b34a-b85626af34ef_story.html?utm_term=.40dd3d01d276

Book. Told you.