Taxes

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Re: Taxes

Postby Proven Veteran » Sun Apr 17, 2016 11:22 pm

Sammy Sofa wrote:This is the lamest mystery ever.


Maybe there will be an amazing twist ending?
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Re: Taxes

Postby Derwood » Sun Apr 17, 2016 11:26 pm

Proven Veteran wrote:
Sammy Sofa wrote:This is the lamest mystery ever.


Maybe there will be an amazing twist ending?


Spoiler: show
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Re: Taxes

Postby Derwood » Mon Apr 18, 2016 1:55 am

Losing the child tax credit this year sucked. We ended up owing for the first time in years
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Re: Taxes

Postby Banedon » Mon Apr 18, 2016 12:13 pm

Derwood wrote:We ended up owing for the first time in years


I guess your withholdings need some optimization.
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Re: Taxes

Postby Derwood » Mon Apr 18, 2016 12:59 pm

Banedon wrote:
Derwood wrote:We ended up owing for the first time in years


I guess your withholdings need some optimization.


Indeed. Freelance gigs mess us up because that's all 1099'd plus my withholding from my check is too low
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Re: Taxes

Postby jersey cubs fan » Mon Apr 18, 2016 1:30 pm

Derwood wrote:
Banedon wrote:
Derwood wrote:We ended up owing for the first time in years


I guess your withholdings need some optimization.


Indeed. Freelance gigs mess us up because that's all 1099'd plus my withholding from my check is too low

Did your accountant finally tell you the IRS doesn't allow you to write off the cost of the full pair of jeans when you cut off the legs?
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Re: Taxes

Postby Derwood » Mon Apr 18, 2016 4:21 pm

jersey cubs fan wrote:
Derwood wrote:
Banedon wrote:
I guess your withholdings need some optimization.


Indeed. Freelance gigs mess us up because that's all 1099'd plus my withholding from my check is too low

Did your accountant finally tell you the IRS doesn't allow you to write off the cost of the full pair of jeans when you cut off the legs?


Thanks Obama
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Re: Taxes

Postby Sammy Sofa » Mon Apr 18, 2016 4:28 pm

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Re: Taxes

Postby Tracer Bullet » Fri Apr 22, 2016 1:18 pm

Guess we've finally found the topic where TT isn't the most reasonable person in the discussion. There's no argument that makes sense here. It is better to have more money today than next year. The amount of time it takes to complete a new W4 is almost all it takes.

The people who are happy to receive several thousand dollars in a refund each year are not making great financial decisions so giving them a chunk of cash every year is worse than a few hundred dollars every month which may decrease their credit card debt or at least reduce the rate at which it increases.
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Re: Taxes

Postby Tracer Bullet » Fri Apr 22, 2016 1:22 pm

In addition to the withholding that a new employer might default to horsefeathering you over, a common issue in newly married folks is large discrepancies in income. If one makes a lot more than the other, the one with the higher salary may need to drop their claimed dependents (even to 0). The lower income spouse has withholding based on the assumption that they're in a low tax bracket. So if you're married to daddy warbucks, you're probably in a much higher bracket than your employer accounts for.
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Re: Taxes

Postby WrigleyField 22 » Fri Apr 22, 2016 1:55 pm

Murton's Revenge wrote:In addition to the withholding that a new employer might default to [expletive] you over, a common issue in newly married folks is large discrepancies in income. If one makes a lot more than the other, the one with the higher salary may need to drop their claimed dependents (even to 0). The lower income spouse has withholding based on the assumption that they're in a low tax bracket. So if you're married to daddy warbucks, you're probably in a much higher bracket than your employer accounts for.

Somehow even with close income, my wife and I still somehow got messed up at my new job, to the point I almost feel it's easier to just file a quarterly estimate instead of figuring out what they are going to do with the w4 withholding. Almost positive I filled it out the same at the new job as the old and ended up way underwithholding. My wife was underwithholding worse than I was but I can't vouch for how she might have filled out the w4.
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Re: Taxes

Postby Sammy Sofa » Fri Apr 22, 2016 3:17 pm

I thought TT was talking about when you end up getting a return of several hundred dollars, or maybe even just over a thousand as opposed to people getting "several thousand" back. Not sweating the former makes sense, but the latter would be ridiculous.
Last edited by Sammy Sofa on Fri Apr 22, 2016 3:26 pm, edited 1 time in total.
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Re: Taxes

Postby WrigleyField 22 » Fri Apr 22, 2016 3:22 pm

Sammy Sofa wrote:I thought TT was talking about when you end getting a return of several hundred dollars, or maybe even just over a thousand as opposed to people getting "several thousand" back. Not sweating the former makes sense, but the latter would be ridiculous.

Yea I think that is what he meant. He referenced getting the number down to the smallest number possible.

So yea there's a limit, of course. But within a reasonable range, the opportunity cost isn't worth the time to really get it down to a low number unless you just enjoy doing that horsefeathers (I kind of do, so that's fine). Just refilling your w4 and only changing your allowances isn't going to get you down to a super precise number, only regularly estimating your taxes will.
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Re: Taxes

Postby Sammy Sofa » Fri Apr 22, 2016 3:26 pm

WrigleyField 22 wrote:
Sammy Sofa wrote:I thought TT was talking about when you end getting a return of several hundred dollars, or maybe even just over a thousand as opposed to people getting "several thousand" back. Not sweating the former makes sense, but the latter would be ridiculous.

Yea I think that is what he meant. He referenced getting the number down to the smallest number possible.

So yea there's a limit, of course. But within a reasonable range, the opportunity cost isn't worth the time to really get it down to a low number unless you just enjoy doing that [expletive] (I kind of do, so that's fine). Just refilling your w4 and only changing your allowances isn't going to get you down to a super precise number, only regularly estimating your taxes will.


Right; as much as I enjoyed getting big returns, when it was explained to me the benefit of getting that down, I made the simple changes and it went from getting over two grand back to typically getting, like, around $800. Getting it down further just doesn't seem worth it.
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Re: Taxes

Postby Tracer Bullet » Fri Apr 22, 2016 5:47 pm

I don't think anyone is saying that more than $0 makes you an idiot. But the only # I saw him throw around as excessive was $5k which is just a ridiculous amount. Sure, a thousand or more happens esp if you change jobs or get a raise or have a kid or buy a house or whatever and one year you get a big refund. but if you ever get back $1k or more, you need to make the simple changes to bring it down. I personally think $500 is the sweet spot but to each his own.
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Re: Taxes

Postby minnesotacubsfan » Fri Apr 22, 2016 10:08 pm

Derwood wrote:
Sammy Sofa wrote:Monster Cables.


People actually buy those? I thought they just jumped straight to AudioQuest overpriced nonsense



CC only goes with MusicHose
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Re: Taxes

Postby Geech » Sat Apr 23, 2016 5:42 pm

Sammy Sofa wrote:I thought TT was talking about when you end up getting a return of several hundred dollars, or maybe even just over a thousand as opposed to people getting "several thousand" back. Not sweating the former makes sense, but the latter would be ridiculous.


Well, the conversation started with "multi-thousand" on the first page, so that's certainly what I was reacting to. If TT mean less than a thousand with all his judgments than that certainly wasn't clearly communicated.
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