[mantispf2000]

It appears that, though wife unit and I made less than last year, we actually owe a butt-load in taxes. It got me to thinking.....

If dentists can have cool bikes, why can't accountants?

Hence.....

A-- I believe there was a adaptation to the tax code that allowed folks to keep more per paycheck, meaning they could purchase the latest/greatest/retro parts needed for their bikes. Now, it's time to pay Unkie Sam back for this money.

B-- An idea to help keep more of this money at the end of the year, and to help with retirement, would be to have more taken out pre-tax for one's 401(k).

Am I thinking along the right single track, or am I still in need of playing the Lotto game and go hide some place where it's warm year-round?

Thanks for the input!!!!

 

[Sandwich]

what

one thing people do, including ourselves, is to put more funds into a 401k to lower take home income. we do this to keep ourselves under the next tax bracket and reduce our overall tax burden. our retirement grows and uncle sam keeps his arbitrary hands out of my pockets.

otherwise I reduce my withholdings so i owe less at the end of the year, even if my weekly take home is a bit less.

 

[eaterofdog]

I suggest you invest in crypto in 2012, dodge the fuck out of taxes, then retire overseas.

 

[gonefirefightin]

I think a bunch of your equation depends on your employment status, being, if you are an employee or self-employed, I personally do everything under an LLC in order to be "self employed" such as a contractor, vendor, or consulting on a bid, or salary basis allowing you to write off the moon and everything under the sun. But I also pay for a CPA to find all the additions and subtractions through the year on a quarterly basis to keep things on track.

Being you have a 401k I highly doubt you are acting as an LLC to your employer so there are limits and designations as to what you may write off through the year that may pertain to your work.

I have found that I not only pay for a CPA in savings over the year but also dont need to get mired in the rule of the letter that seems to change every quarter.

 

[Pesqueeb]

I'm no accountant, but I think you need an accountant.

 

[SkaredShtles]

@mantispf2000 - aren't you of the age where you should be funding your 401K at the maximum? Also - you should be funding an IRA for your wife and yourself as well. Maximums for each in 2023:

401K max: $22,500
IRA max: $7,500 (if you're over 50, which I think you are)

I believe you can do this *retroactively* - so basically contribute today but claim it for 2023 taxes.

@stoney can probably provide more details.

And also - you may need to get hold of a financial planner...

 

[stoney]

1. Get a CPA. I'll send you mine's info if you want it. @6thElement can provide feedback if you'd like.

2. It's too late for a 401(k), at least 2023. For a traditional IRA, your household income has to be less than $153k MAGI. If it's greater, you don't qualify for before-tax contributions.

3. @SkaredShtles is off on contribution limits.
2024 401k/403b $23,000 + $7,500 catch-up.
2024 457 is an additional $23,000 + $7,500 catch-up, with an up to $23,000 special catch-up.
2024 Traditional IRA $7,000 with $1,000 catch-up; $153k MAGI income limit.
2024 Roth IRA $7,000 with $1,000 catch-up; $240,000 MAGI

4. You need a CPA.

5. If this is your first under-withholding, then you should be able to skip the penalty or at least have it super small.

6. See parts 1 and 4.

 

[SkaredShtles]

1. Get a CPA. I'll send you his info if you want it. @6thElement can provide feedback if you'd like.

2. It's too late for a 401(k), at least 2023. For a traditional IRA, your household income has to be less than $153k MAGI. If it's greater, you don't qualify for before-tax contributions.

3. @SkaredShtles is off on contribution limits.
2024 401k/403b $23,000 + $7,500 catch-up.
2024 457 is an additional $23,000 + $7,500 catch-up, with an up to $23,000 special catch-up.
2024 Traditional IRA $7,000 with $1,000 catch-up; $153k MAGI income limit.
2024 Roth IRA $7,000 with $1,000 catch-up; $240,000 MAGI

4. You need a CPA.

5. If this is your first under-withholding, then you should be able to skip the penalty or at least have it super small.

6. See parts 1 and 4.

I knew stoney would be helpful.

 

[mantispf2000]

Hey All--

Thank you for all the input. I'm still working on taxes, and all this has helped direct me in which way to go.

 

[stoney]

Hey All--

Thank you for all the input. I'm still working on taxes, and all this has helped direct me in which way to go.

If you have a big bill, seriously spend the coin on a CPA. The first year I did I went from owing $7k to getting back $10k. I haven't gone back to doing them on my own since.