Current Events > Anyone else get obliterated by taxes this year without large financial changes?

(+) Yeah! (+)

By large financial changes I mean things like massive stock swings, huge raises or job losses, buying or selling property, stuff like that.

Just a Joe shmo making x dollars two years ago and getting a small refund last year, then making x dollars (plus a marginal raise, if any) last year and suddenly owing hundreds or even thousands this year? Again, without any significant changes in financial standing that would have tax implications?

Anyone else?

I save all my tax obliteration for my paycheck.

The same $200 - $400 I get back every year.

Nope. I get annual salary increases. So I get taxed harder each year, which in turn makes my refund a little higher each year.

First time in 10 years my wife and I didn't owe.

When we got married I updated my W-4 wrong and it caused us to always owe like $400-700 each year, I never bothered changing it since it wasn't that big of a deal.

Both got new jobs in late 2021 and filled out our W-4s with the default withholding so 2022 was the first full year like that and we got a nice refund. Our state recently started doing property tax credits too so that was a nice extra $600ish on top of that

Child Tax Credit came in clutch

instead of focusing on your return, you should focus on total taxes paid as a percentage of your income.

NoxObscuras posted...

Nope. I get annual salary increases. So I get taxed harder each year, which in turn makes my refund a little higher each year.

Same.
*Knock on wood
I need to keep getting my annual salary increases.

My return was about the same.

On the plus side, I made my Roth deposit and noticed significant 6 month gains. I was expecting a break even or slight drop. I dont really keep tabs on it, as its set it and forget it for me. Nice surprise.

I dropped a large stack on taxes this year (5-figures). Much more than last year.. will try to keep myself in a lower tax bracket in 2023.

shironinja posted...

I dropped a large stack on taxes this year (5-figures). Much more than last year.. will try to keep myself in a lower tax bracket in 2023.

You'll try to make more money this year? That sounds...very unwise

300$ kickback. the same as last year.

still plan to contribute that to a new TV with a better resolution.

HD to a UHD or better. preferably (black friday is my target to save up to that time) unless i see another sale happen.

I noticed the W-4 form changed drastically a couple years ago so if you recently did one be mindful of that. We went the whole year with my wife not withholding anything for Feds.

emblem-man posted...

You'll try to make more money this year? That sounds...very unwise

Make more money .. but if you run it thru a corporation and have a lot of expenses then the company can pay minimal taxes. Paying yourself a salary is also necessary but should be as low as possible and stay within a lower tax bracket.

make sense?

shironinja posted...

Make more money .. but if you run it thru a corporation and have a lot of expenses then the company can pay minimal taxes. Paying yourself a salary is also necessary but should be as low as possible and stay within a lower tax bracket.

make sense?

You don't have a standard w-2, etc. I understand.

emblem-man posted...

You don't have a standard w-2, etc. I understand.

Yes. The system (capitalism) is designed to keep people poor and stuck in their job. Only by taking advantage of these silly tax strategies can you leverage yourself into middle class (and beyond).

shironinja posted...

Yes. The system (capitalism) is designed to keep people poor and stuck in their job. Only by taking advantage of these silly tax strategies can you leverage yourself into middle class (and beyond).

Is there a system without jobs? I want that one.

Nope. Made more this year due to some small capital losses. Before those factored in it was about the same as always.

HudGard posted...

Is there a system without jobs? I want that one.

Thats the dream.. we just make a bunch of robots and AI running on free (clean) energy..

.. then humans can hang out on the beach and ToS all day.