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

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[quote=Anonymous][quote=Anonymous]i just did ours.  We owe 9K.  I have no idea how we owe so much. We make around 330K gross, all but about 6k from wages, both of us take out 24,500 for 401K; we have one kid and  some investments that showed long term cap gains this year.  We sold a little to pay for the last of our renovations (most was paid for by HELOC)  We each claim 0 on our w-4s.

We always owed, but never this much.  The GOP screwed us again.[/quote]

You haven't been paying attention to this thread have you?  At your HHI, you are unlikely to have been screwed.  You can't determine whether you lost in the tax cuts based on how much you owe.  You may have been screwed by the withholding tables there.  But to find out how you really did in the tax cuts, you need to compare total taxes paid for 2017 and total taxes paid for 2018.  You probably paid less in taxes total for 2018 than 2017.  Most likely, a lot less was withheld (so you had much bigger paychecks) and so you prepaid less in taxes.  This is actually good.  This means that you were able to earn more interest in your other accounts on your money rather than giving the US government an interest-free loan over the last 12 months.

The withholding tables were changed, so just claiming 0 on your W-4's may not be enough.  Based on this result, between you and your spouse, you need to take out about $800 per month more than last year.  So using line 6 on the W-4, adjust for $800/month (or $400 per pay period if you have bi-weekly pay periods).  You can either do it all from one paycheck or you each adjust $400/month or $200/PP.  Then you will not owe next year.[/quote]

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