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Reply to "Huge (for us) tax bill. What went wrong?"
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[quote=Anonymous][quote=Anonymous]DH and I are doing our taxes and we owe about $25k which is shocking. We make around $230k pre tax and take the standard deduction. We both claim all 0s and pay several hundred dollars a pay period extra. In theory we should be paying an extra $2k per pay period per month right to the IRS? Here is the kicker, we have a huge disparity in income. My DH only makes $40k and by increasing our withholding it gets to the point where it's silly for him to even work. He carries no benefits for us and his employer doesn't do a traditional 401(k). I know more information is probably needed, but any ideas on what we are doing wrong. This was quite the gut punch. [/quote] OP, your math doesn't add up. If you make $230K pretax, then the most your AGI would be is $204,100, which would be a total Federal income tax of $45543. Of course, your AGI would be reduced by any 401K contributions and various deductions if you itemize, and your tax liability would be reduced by any credits, like the child tax credit. There's no way that you still owe $25K unless one of you didn't have ANY tax withholding.[/quote]
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