Tax Returns are coming soon!

Why do taxes have to be so confusing!

 

Yeah. Hasty before bed reply on my part. Sorry about that.

https://www.irs.gov/retirement-plan...-you-are-covered-by-a-retirement-plan-at-work

Single folks get bent the fuck over by the IRS

 

I re-assess my withholding each year. Each year I pay less interest on the home, kids grow up and leave, increases in pay, etc. change yearly. My goal is to break even between state and federal income tax. This year it looks like I will pay a little less than $100 total. I never want a huge return. Letting the government hold my money is crazy. I'd rather owe a small amount than get any back. Still ticks me off a bit though to see how much I pay in and still owe. I hope someone is getting some good stuff from that money.

 

It makes more sense if you ever get ahold of the tax brackets HR usually has. Your withholding is based on an assumption of what you will make for the year broken down into however many pay periods you have in the year. If your paycheck is $5000 dollars and you are paid weekly, it will hold out for a rate based on you making $260,000/yr. or if paid monthly it will use a rate based on $60,000/yr. Obviously the $60,000/yr. will be in a lower bracket and pay less. A day of overtime will affect the weekly paycheck more than the monthly paycheck because it is using that paycheck amount to calculate your yearly salary and tax rate for withholding. If that makes any sense. It really doesn't matter that they hold more out as it evens out at the end of the year.

Here it is: https://www.irs.gov/pub/irs-pdf/p15.pdf
Starts around page 45. Clear as mud, but can be very helpful if you take the time to figure out how much you should have withheld to come out as close to $0 at the end of the year.

 

Interesting. Never knew about the income eligibility limits on a Roth IRA.. that kind of blows.

 

There are ways around it, but you have to have a traditional IRA first, then convert it to a Roth.

 

+1, I owe a little this year. I work the withholding to get as close as possible. One year I wrote a $4 check.

 

I'm getting a Federal refund of $46 this year and a State refund of $8. My tax planning is right on!!

 

I've read about a "backdoor". That I could transfer from my 401 to a Roth...?? I've been lead to believe the amount I transferred would be taxes going into the Roth however???

With a 401 & company retirement what are the options?

 

Im getting a Phat Ass check this year. Worked a ton of hours last year.

Going to use the $$$$ on new tires.

 

Fed taxes and FICA bother me less than: State sales taxes, state income taxes, excise taxes, gasoline taxes, local option taxes, personal property taxes, municipal assessments, etc etc etc - all of which, when combined, can be three or four times what the feds piss away.

 

You can roll your 401K into an IRA and from there into a "backdoor" Roth. You'd probably need to see a financial planner to see if it is worth it to you. It is good at times to have money that doesn't count as taxable income, but it really depends on ones circumstances in retirement as to whether there is an advantage to it or not. I make too much for a Roth, and don't see the need to convert anything into it now as I'd rather pay the taxes later. For those who can contribute to a Roth though, it is a nice option to have to go with the 401K or pension.

 

I'd like one tax and then let it be distributed to the municipalities as needed. My state adds ~$.19 a gallon for gas. Of course the fed has ~$.18 a gallon. I'm ok with FICA so long as the "means" test never happens.

I'd take some tax free income once I get to retire tho because I'm guessing my income will fall whenever that happens I'd prefer it tax free while I'm working.

 

Personal property taxes really kill me. I mean, I already paid sales tax on my truck. Why do I have to pay taxes to park it in my driveway of my home, that I pay property tax for as well? And taxes in Fairfax county are insane.

 

Nothing crazy, all that will be less than $1500, will be installing it myself.

 

Lmao, nope..... hers went to cover her health insurance somehow

I dont have taxable income

So much for couch monies

 

A lot of people (those who vote for larger government and more "give away" programs) seem to enjoy them--either that or they are too stupid to make the connection?

 

FTFY haha the "uninformed" seem to respond better to uninformed over stupid.

 

There won't be a refund in my house! I don't trust them hanging on to my money. As I long as I don't have to pay much more than I already have, I'm happy.