The employer knows and it's on my pay stub because the DC D4 makes you fill in a bubble for tax filing status. The federal W4 also requires an answer about it. |
I make about $430k HHI. Do this mean a hike on my income of the $30k that is above $400k? I I mean, a few percentage point hikes on $30k of income is not going to kill me . . . |
Tax lawyer here. First time I’ve heard anyone use the term MFJ. |
“Anybody making more than $400,000 will see a small to a significant tax increase,” Mr. Biden told George Stephanopoulos. He added: “If you make less than $400,000, you won’t see one single penny in additional federal tax.”
White House press secretary Jen Psaki later conceded that the $400,000 threshold was for “families,” not individuals. So if you’re a two-income household making $200,000 each, you could get whacked. |
It’s lose lose. Smart people who have worked hard to do well lose access to the resources they have created and folks like you won’t see the money trickle down via the government. |
That’s not true with Biden he is handing out checks to all the folks under 150k with even more unemployed folks |
That is bizarre. Maybe you need some more cases! |
You should not admit this in public. |
You're fairly clueless. What's on your paystub is how you wish to be taxed, i.e. how much you want the employer to withhold from your check. Even people who are married can choose to be taxed as a Single filer, and many do - especially if their spouse makes about the same income and they don't want to get hit with a huge tax bill. MFJ is actually HOW you file with the IRS: Married Filing Jointly. As opposed to Married Filing Separately. |
They are intending to do that in addition to the Biden tax plans. Elizabeth Warren has revived her wealth tax aka Ultra-Millionaires tax, which would levy 2% on the wealth of those over $50M an 3% on those with wealth of over $1B. The tax would raise an estimated $3T over 10 years. https://www.cnn.com/2021/03/01/politics/elizabeth-warren-wealth-tax/index.html |
I prefer not to give a loan to the IRS so I don’t do that. Thus, what I report to my employer about how I wish to be taxed is actually how I file. And because my answer was about my own experience, it’s accurate. YMMV. |
Anyway, I’d think people doing that are even MORE aware of what “MFJ” means, which is how we got into this. I think you’re just embarrassed to be a tax attorney who doesn’t recognize common terminology in your own field. Which is understandable. |
$400K HHI for a couple each making $200K is NOT a working class family. A working class family, even in DC is making $150-250K jointly. The median income of an individual in DC was around $75K in 2020. The median HHI in DC in 2020 was $95K. 80th percentile individual in DC was $140K in 2020, 80th percentile HHI in DC in 2020 was $210K 90th percentile individual in DC was $180K in 2020, 80th percentile HHI in DC in 2020 was $300K $200K individual in DC in 2020 was the 92nd percentile, $400K HHI in DC in 2020 was 95th percentile. Top 8% individual and top 5$ household is NOT working class. The working class averages around the median, maybe the 40th-60th or even 75th percentile. And for those who feel working class, I'm sorry, but owning a home in NW DC is by definition NOT working class. Owning a home in one of the most expensive portions of the metropolitan area is a luxury. It is by definition a luxury that is only available to the rich. The working class in DC who own their own homes live in the other quadrants of the city and they don't own in NW DC. If you choose to spend your rich income on housing in the more desirable parts of town, that is a luxury that true working class residents cannot afford. Besides, if you make $400+, you are only going to see the taxes raised on the portion that is above $400K. If you had an HHI of $450K, you would only see a tax increase on the top $50K of your income. Even if there was a 3% increase, you would only see an increase annually of $1500. If you think that paying an additional $1500 on an income of $450K is so onerous, then you are even more out of town with reality than most people think of the truly wealthy. Is the difference between say $150K and $151,500 in taxes going to seem that big to you? |
I meant to include this link in the post above. The calculator I used was: https://dqydj.com/income-percentile-by-state-calculator/ |
It's happening now, just differently than you imagined. |