[jimmydean]

So the wife and I made a little more money this year than last. We got $250 back from state but we owe the feds $3500. We are both claiming zero but she makes so little, they don't take out nearly enough.

It seems we made $15k more last year than the year prior. Do we just withhold more in taxes, or would adjusting our 401k contributions make a difference? The wife doesn't want to bump up our contributions if it will mean a lot less per month just to cover the taxes. But I would much rather pay ourselves than the feds. The standard deduction is bullshit.

 

[gonefirefightin]

Sounds like you already know the answer to that question...

 

[Adventurous]

So the wife and I made a little more money this year than last. We got $250 back from state but we owe the feds $3500. We are both claiming zero but she makes so little, they don't take out nearly enough.

It seems we made $15k more last year than the year prior. Do we just withhold more in taxes, or would adjusting our 401k contributions make a difference? The wife doesn't want to bump up our contributions if it will mean a lot less per month just to cover the taxes. But I would much rather pay ourselves than the feds. The standard deduction is bullshit.

You can have additional taxes withheld if you choose, regardless of your withholding declaration, so you don't end up in that situation next year.

EDIT: Removed incorrect advice cause I wasn't paying attention and acknowledge my stupidity.

 

[Westy]

I usually run my numbers in September and adjust various contributions and withholdings to target a near zero tax refund.

 

[Full Trucker]

Sounds like you just need an investment property or two. I think @kidwoo might have some advice regarding this.

Serious answer: I’m no tax pro but that sounds fishy. If the standard deduction isn’t working for you, maybe it’s time to try itemizing? Have you considered (or are you currently using) a pro tax preparer? I have for the last 15+ years and I find that it’s money well spent.

 

[StiHacka]

So what if you owe $3500 now or adjust your withholdings? The underpayment penalty is negligible if you file/pay on time.

From my own experience, the recent-ish cap on SALT deductions made itemization way less interesting than in the past.

 

[maxyedor]

Have you considered an off shore bank account? Or just become rich to the point you no longer pay taxes?

We do pretty much what Westy does, look at the rough math 3/4 of the way through the year and adjust one of our W2s accordingly, usually get it close enough.

 

[kidwoo]

Move across the river to vancouver and become a sovereign citizen?

Vancouver washington obviously. They seem a free people. They have flags.

 

[stoney]

So the wife and I made a little more money this year than last. We got $250 back from state but we owe the feds $3500. We are both claiming zero but she makes so little, they don't take out nearly enough.

It seems we made $15k more last year than the year prior. Do we just withhold more in taxes, or would adjusting our 401k contributions make a difference? The wife doesn't want to bump up our contributions if it will mean a lot less per month just to cover the taxes. But I would much rather pay ourselves than the feds. The standard deduction is bullshit.

Check your email.

 

[jimmydean]

Sounds like you just need an investment property or two. I think @kidwoo might have some advice regarding this.

Serious answer: I’m no tax pro but that sounds fishy. If the standard deduction isn’t working for you, maybe it’s time to try itemizing? Have you considered (or are you currently using) a pro tax preparer? I have for the last 15+ years and I find that it’s money well spent.

Itemized was like $15k vs the $25k standard.

 

[stoney]

Check your email.

Call me if you want clarification on it. It is really raw but might be helpful.

 

[jimmydean]

Call me if you want clarification on it. It is really raw but might be helpful.

Thanks a ton. I will check it tonight.

 

[CrabJoe StretchPants]

@stoney is the Saul Goodman of financial planning

 

[Toshi]

Look into making a Roth IRA contribution, credited towards 2020, to reduce your tax burden. Don't know your situation, but its worth seeing if/how that changes the numbers.

I can predict that it'll make precisely 0 difference

because Roth

 

[Adventurous]

I can predict that it'll make precisely 0 difference

because Roth

That's what I get for typing that out as I was looking at my Roth. My multi-tasking skills are clearly superior.

401K is what I intended to say.

 

[stoney]

You can have additional taxes withheld if you choose, regardless of your withholding declaration, so you don't end up in that situation next year.

Look into making a Roth IRA contribution, credited towards 2020, to reduce your tax burden. Don't know your situation, but its worth seeing if/how that changes the numbers.

Wtf are you talking about? Roth has fuck all impact on your taxes. It's contributed on an after-tax basis. It only has a benefit for you in the future.

Edit: just read Yoshi's comment.

 

[Adventurous]

Wtf are you talking about? Roth has fuck all impact on your taxes. It's contributed on an after-tax basis. It only has a benefit for you in the future.

Edit: just read Yoshi's comment.

Fixed. I was attempting to multi-task when I wrote that and made a stupid.

 

[eric strt6]

So the wife and I made a little more money this year than last. We got $250 back from state but we owe the feds $3500. We are both claiming zero but she makes so little, they don't take out nearly enough.

It seems we made $15k more last year than the year prior. Do we just withhold more in taxes, or would adjusting our 401k contributions make a difference? The wife doesn't want to bump up our contributions if it will mean a lot less per month just to cover the taxes. But I would much rather pay ourselves than the feds. The standard deduction is bullshit.

Hi this is Eric's wife, Ruth. My thoughts are that you can do both, increase your 401K and add a bit more to your federal tax withholdings. By taking these two actions you can decrease your taxable income (increasing 401K contribution) and directly increase your taxes paid in. Unfortunately, both steps decrease your cash in pocket. Without knowing more about your personal situation it is difficult to weigh in as to what steps best suit your situation. I always think that increasing 401K contributions is a good idea.

 

[eric strt6]

And in case you didn't know. Ruth is a CPA with a Masters in Tax who manages the North American taxes (USA, Canada, Mexico) for an international corporation

 

[stoney]

And in case you didn't know. Ruth is a CPA with a Masters in Tax who manages the North American taxes (USA, Canada, Mexico) for an international corporation

I've talked with Ruth in the past; woman is fucking smart (and incredibly nice at the same time!). Still can't figure out how Eric made that happen.

 

[eric strt6]

I've talked with Ruth in the past; woman is fucking smart (and incredibly nice at the same time!). Still can't figure out how Eric made that happen.

Pure fucking luck

 

[CrabJoe StretchPants]

I've talked with Ruth in the past; woman is fucking smart (and incredibly nice at the same time!). Still can't figure out how Eric made that happen.

She's just using him to get to us

 

[SkaredShtles]

Can't you just spend a few grand on hookers & blow and use that to reduce your taxable income??

 

[stevew]

miss the two years I worked tax free in colorado...

 

[pinkshirtphotos]

Taxes is that the place where King of the Hill was filmed?