My wife & will owe the IRS just under $2,000 (2021 taxes). The reason why is inf

[Texacon]

https://www.democraticunderground.com/100216565133

themaguffin (3,029 posts)


My wife & will owe the IRS just under $2,000 (2021 taxes). The reason why is infuriating

This may have come up before and not sure why it didn't become an issue last year for us (or earlier).

The reason is neither of had enough taken out of our paycheck. This has me furious.

I knew that the GOP tax "cut" was bullshit, but the issue here is that they forced this shell game on everyone where less is taken out. I don't want less taken out. I want whatever is supposed to be taken out to be taken out. I don't want to owe money back.

I lost my job in the spring of 2020. When I started a new job last year, I don't recall what I filled out, but I always used to claim zero.

I had no idea that the form changed and that apparently the default is a lower and insufficient amount taken out.

I also learned that tax payers should update the form annually (unlike in the past where you did it once unless wanted to make a change in one's time with a given employer).

We would have owed more if not for the child tax credit.

I know that we all should pay attention more, but this ****ery is just insane. We never owed money before. I get it, if one has gains etc., but for payroll, this is bullshit as a default way of happening.

1.  Checking stuff is your job as an adult.  Not the GOP's fault or anyone else's.  YOU are supposed to check that stuff.

2.  This is taxes for 2021.  Biden was president for 99.9% of that time.  It's his tax hike.

3.  My taxes went down approximately $2,500/year under Trump.

4.  Tough shit, pay what you owe and stop bitching!  It's patriotic to be extorted, remember?

KC

[Texacon]

Jerry2144 (805 posts)

4. I feel your pain

To the tune of $4000. And I hit the SALT limit. If only the Republiklan party didn’t force through their ucked fup tax hike in 2017

Hey Jerry, there should never have been a SALT deduction.  Why should your state get to balance their budget off of the backs of those in other states?  Now you are seeing the results of what your politicians are doing as to budgeting.  Get THEM to fix your SALT problem.

KC

[DUmpDiver]

Hey Jerry, there should never have been a SALT deduction.  Why should your state get to balance their budget off of the backs of those in other states?  Now you are seeing the results of what your politicians are doing as to budgeting.  Get THEM to fix your SALT problem.

KC

People always want to get rid of tax loopholes - unless it's one that they use.

I agree that the SALT loophole should never have existed.

[landofconfusion80]

If your income changes due to life events, it's your duty to change your withholdings. It's not exactly difficult

[jukin]

DUmbass DUchebags, paying taxes is patriotic... or at least that is what you DUmmys used to say when you didn't pay taxes.

[Texacon]

This is a fun thread;

haele (10,881 posts)

13. Had the same issue last year. TFG's "Tax cut".

If I was making $200k more, it would just sting a bit, but with TFG fu**ing with taxes, an unexpected bonus, and adding that three months of forced "Don't need to pay your FICA and SS" because of the Pandemic "stimulus" in 2020; as our household income is just over $75k, the two at the same time cost us big time last year. The IRS still hasn't completed processing our 2020 return. We might owe some more, we might not.
And again this year because we had to pay that FICA/SS tax stimulus back in 2021, everything was still skewed and the IRS refused the electronic return to ensure we paid enough last year -and the year before.
We might even get money back this year.
But who knows?

Haele

First, I don't remember any 3 months of not having to pay FICA/SS taxes?  Was that a thing I just missed?

Secondly, let's play the "whose fault is it?" game.  DUmmie gets a bonus and, if the 3 month vacation from FICA/SS taxes was real, WHO could have put that money back and paid the taxes on it?  Hmmmm lemme think about that for a second.  Let's see, my wife and I own a business and I can't seem to remember WHO puts the money back to pay OUR taxes ... dammit, I'll have to phone a friend.

These people.  I swear.  Brag all the time about their 'high IQ's', and how many degrees they have an what level of degree they have, but it seems very few of them have ever figured out who is to blame when stuff like this happens.

Hint for you DUmmie, You are responsible for YOU.  If you get some extra money, make an estimate of what your tax rate was last year and put that much back and play with the rest, if you're so inclined.  Again, you could always mail it to the IRS and they will be glad to 'hold' it for you ... interest free of course, but you won't care because you won't have to pay anything at the end of the year.

KC

[67 Rover]

Are you allowed to claim 0 dependents on your W-4 form for federal?  I know you can for state W-2.

[Texacon]

Check this one out.

iscooterliberally (2,253 posts)

17. I'm about to cut a check for almost $7K to the IRS and we don't even own a house.

My wife signed up for health insurance last year, but didn't read the find print. She got a plan based on her income alone so it was subsidized. We come to find out now that we have to pay that back because of our combined income. We have been saving up to buy a new vehicle as the two we have are pretty old now. I have been saving up money for a nice down payment. It seems that every time I try to save up money to do something, some financial disaster comes along and wipes it all out. The republicans really ****ed up the tax system that's for sure. We have been hit hard every year since 2017. We made sure our W4 forms had extra taken out and increased our monthly contributions to our IRA accounts. I don't know what else to do. So much for the "American Dream".

What in the absolute fu*k does you trying to CHEAT the system using health insurance have to do with TAXES?!

If you didn't read the fine print, that is on you!  If you did and you didn't understand what you read, then you've proven again why we call you DUmmies, but I seriously don't see how you could not have known that the American taxpayer was footing your health insurance bill.

In any of those scenarios above, you and you alone are responsible.

KC

[Texacon]

Are you allowed to claim 0 dependents on your W-4 form for federal?  I know you can for state W-2.

I'm not sure.  I think I had to claim at least 1 for my job, but since we own a company it's moot.  We have to pay quarterly taxes.  And woe to us if we forget because the IRS doesn't. 

KC

[BannedFromDU]

     I couldn't care less how much these leeches send to Biden. Choke on it, DUmbasses.

[USA4ME]

What a bunch of idiots!!

People who know how to manage money would prefer to owe at the end of the year rather than “I don't want less taken out. I want whatever is supposed to be taken out to be taken out.” You see, I can take that money and invest it to make even more money. This leftist would rather just hand the money over to the gov’t asap.

Look primitives, all you’re doing is screaming to the world that you don’t have enough discipline or knowledge to know how to handle money. Personally, I don’t care if you want to be suckers and just hand over your cash to Uncle Sam. Just don’t pretend like you’re smarter than the rest of us, because you’re not even close.

.

[BannedFromDU]

What a bunch of idiots!!

People who know how to manage money would prefer to owe at the end of the year rather than “I don't want less taken out. I want whatever is supposed to be taken out to be taken out.” You see, I can take that money and invest it to make even more money. This leftist would rather just hand the money over to the gov’t asap.

Look primitives, all you’re doing is screaming to the world that you don’t have enough discipline or knowledge to know how to handle money. Personally, I don’t care if you want to be suckers and just hand over your cash to Uncle Sam. Just don’t pretend like you’re smarter than the rest of us, because you’re not even close.

.

     I'd add that they can suck a fat turd as they send all of their money to their beloved government.

[Old n Grumpy]

My wife signed up for health insurance last year, but didn't read the find print

Damn, that find print will get you every time. that's why you need to find it!!

[USA4ME]

It’s even more stupid than what they’re complaining about.

I guarantee you these dolts would rather have more withheld from their pay so they can get a refund check at the end of the year. Let that sink in. They’d rather overpay to the gov’t and have what they shouldn’t have paid in returned to them — without interest — than pay the minimum and invest the remainder (they could at the very least put it in a savings account and earn something), and all because they don’t have the discipline to save their own cash. The gov’t has to hold onto their money because they can’t figure out how to do it on their own.  They need a Nanny State because, quite frankly, they’re too dumb to figure out life by themselves.

.

[SVPete]

So DU-Moron themaguffin paid no attention when he filled out his W-4, but his negligence is Trump's and the Rs' fault?

iscooterliberally (2,253 posts)

17. I'm about to cut a check for almost $7K to the IRS and we don't even own a house.

My wife signed up for health insurance last year, but didn't read the find print. She got a plan based on her income alone so it was subsidized. We come to find out now that we have to pay that back because of our combined income.

Welcome to OhBummer! Don't Care! Hey DU-Moron,


 


 

[BamaMoose]

The OP even points out the most likely explanation, but is too stupid to figure it out.  They say they get the child tax credit, which means they most likely got the advance on the child tax credit which is now being deducted from their return.  I was waiting for the people who got the advance to figure out it was an advance that had to "paid back" and not free money.  I knew it would be quite a shock to many of them when they did their taxes.  The Democrat politicians have been pushing the idea that the credit advances were a great victory by Biden which lowered child poverty, which completely distorts the fact that the advances were a loan against your tax refund.  I don't know how they figure a $0 financial wash lowers child poverty but the DUmmies lap it up. 

[freedumb2003b]

The OP even points out the most likely explanation, but is too stupid to figure it out.  They say they get the child tax credit, which means they most likely got the advance on the child tax credit which is now being deducted from their return.  I was waiting for the people who got the advance to figure out it was an advance that had to "paid back" and not free money.  I knew it would be quite a shock to many of them when they did their taxes.  The Democrat politicians have been pushing the idea that the credit advances were a great victory by Biden which lowered child poverty, which completely distorts the fact that the advances were a loan against your tax refund.  I don't know how they figure a $0 financial wash lowers child poverty but the DUmmies lap it up.

That alone makes thr DUmmie's reactions pretty damn funny.

[FlaGator]

These people need to consult with H&R Block or somebody before they fill out their taxes based on what "they know" about the tax structure. If "what you know" is wrong then you will pay.

[Karin]

adding that three months of forced "Don't need to pay your FICA and SS" because of the Pandemic "stimulus" in 2020;

I have no idea what this DUmmie is talking about, and I do payroll.  The only SS holiday occurred a long time ago under Obama, I think.  Or was it Bush?  I forget, but there was nothing like that in 2020.  Might be part of its problem. 

[Ralph Wiggum]

I have no idea what this DUmmie is talking about, and I do payroll.  The only SS holiday occurred a long time ago under Obama, I think.  Or was it Bush?  I forget, but there was nothing like that in 2020.  Might be part of its problem.

There was no Social Security holiday during the Chinese Wuhan Red Death, and I honestly can't recall what year that there was a temporary SS holiday either.

[SVPete]

From the That's Not How Things Work file, IRS Guidance Allows Workers a Payroll Tax ‘Holiday’, https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/Pages/IRS-Guidance-Workers-Payroll-Tax-Holiday.aspx :

Update: Repayment Period Extended for Deferred Payroll Taxes

Under the IRS guidance issued in August 2020, employers were allowed to defer withholding employees' share of Social Security taxes from Sept. 1, 2020 through Dec. 31, 2020. Originally, employers were required to increase withholding and pay the deferred amounts ratably from wages and compensation paid between Jan. 1, 2021 and April 31, 2021, and beginning on May 1, 2021, penalties and interest on deferred unpaid tax liability would begin to accrue.

However, the Consolidated Appropriations Act that President Trump signed at the end of 2020 extended the repayment period through Dec. 31, 2021. Now, penalties and interest on deferred unpaid tax liability will not begin to accrue until Jan. 1, 2022.

Employers were Allowed to choose to defer withholding employees' share of SS taxes in the last 4 months of 2020, and then withhold and repay it in 2021. Trump signed it into law - probably as part of a much larger Covid stimulus bill, but larger bill or stand-alone bill it was passed by a Dem-majority Congress. IOW, contrary to DUmmie haele's claim, no one was forced by the Feds to not pay their SS tax. If DUmmie haele's employer CHOSE to do that, (s)he should take up that beef with the employer ... and maybe with the Dem-majority Congress who passed the bill Trump signed.

[Texacon]

Through that whole thing I always throught the federal government did it wrong.  I think those who did not want to work shouldn't have been given an extra $600/week, they should have just been given regular unemployment.  Those who STAYED on the job should have been given a real holiday on payroll taxes.  One that didn't need to be repaid.

That would have solved all kinds of issues.

KC