princessleia
Established Member
Joined: Jan 23, 2011 21:13:41 GMT -5
Posts: 266
|
Post by princessleia on Feb 19, 2018 8:51:04 GMT -5
At last somebody is pointing it all out...I can never understand folks who max out their retirement contributions year in year out raising their retirement income and being taxed at a new higher level. "I saved too much for retirement." - said no one, ever As I said earlier, don't limit your retirement contributions to your 401/IRA accounts where you are bound by a minimum withdrawal rate each year. Spread it out to a different mix of accounts/rules. Right now, I am in the bottom tax bracket and I intend to stay there. Look at TallGuy's post #56. That is a good strategy.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Feb 19, 2018 8:57:53 GMT -5
At last somebody is pointing it all out...I can never understand folks who max out their retirement contributions year in year out raising their retirement income and being taxed at a new higher level. "I saved too much for retirement." - said no one, ever Sure they did. Someone who put off all enjoyment in life to scrimp and save, and then find they were never able to enjoy the money in the end.
|
|
thyme4change
Community Leader
Joined: Dec 26, 2010 13:54:08 GMT -5
Posts: 40,403
|
Post by thyme4change on Feb 19, 2018 8:58:40 GMT -5
At last somebody is pointing it all out...I can never understand folks who max out their retirement contributions year in year out raising their retirement income and being taxed at a new higher level. "I saved too much for retirement." - said no one, ever Lol. I kinda said it. We did most of our investing through our 401k, and now paying for the kids' college is looking daunting. Had I had a more balanced plan, we would have a little more access to money now. We might just go down to the match amount for the years the kids are in school. The tax bill will help us out. If I get 5 grand for a few years, that will cover a few years. 😀
|
|
Deleted
Joined: Apr 28, 2024 19:23:44 GMT -5
Posts: 0
|
Post by Deleted on Feb 19, 2018 9:03:57 GMT -5
"I saved too much for retirement." - said no one, ever Lol. I kinda said it. We did most of our investing through our 401k, and now paying for the kids' college is looking daunting. Had I had a more balanced plan, we would have a little more access to money now. We might just go down to the match amount for the years the kids are in school. The tax bill will help us out. If I get 5 grand for a few years, that will cover a few years. 😀 You could do a 401K loan too.
|
|
beergut
Senior Member
Joined: Jan 11, 2011 13:58:39 GMT -5
Posts: 2,184
|
Post by beergut on Feb 19, 2018 10:17:02 GMT -5
"I saved too much for retirement." - said no one, ever Lol. I kinda said it. We did most of our investing through our 401k, and now paying for the kids' college is looking daunting. Had I had a more balanced plan, we would have a little more access to money now. We might just go down to the match amount for the years the kids are in school. The tax bill will help us out. If I get 5 grand for a few years, that will cover a few years. 😀 Respectfully, that isn't saving too much, that is saving in the wrong vehicles.
|
|
thyme4change
Community Leader
Joined: Dec 26, 2010 13:54:08 GMT -5
Posts: 40,403
|
Post by thyme4change on Feb 19, 2018 10:42:02 GMT -5
Lol. I kinda said it. We did most of our investing through our 401k, and now paying for the kids' college is looking daunting. Had I had a more balanced plan, we would have a little more access to money now. We might just go down to the match amount for the years the kids are in school. The tax bill will help us out. If I get 5 grand for a few years, that will cover a few years. 😀 Respectfully, that isn't saving too much, that is saving in the wrong vehicles. I did say that I "kinda" said it. If I had saved in a 529, it wouldn't have been retirement savings. It would have been college savings. So, I did 'kinda' save too much for retirement and not enough for college.
|
|
lynnerself
Senior Member
Joined: Jan 3, 2011 11:42:29 GMT -5
Posts: 4,166
|
Post by lynnerself on Feb 19, 2018 12:03:50 GMT -5
We saved as much as possible in a Roth, knowing we could us it for the kids college if necessary. Turns out we didn't need it.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,908
|
Post by countrygirl2 on Feb 27, 2018 21:19:20 GMT -5
Right now I'm so poed, think we are going to owe over $25k for taxes. Hubs said oh well means we are making money, I said oh well, we spent to much and I underestimated and now it comes out of savings. Damn, damn, sure hope I'm wrong but don't think I am, already paid $12k.
|
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Feb 27, 2018 22:25:38 GMT -5
Yeah, and there is even more. We sold a rental house in 2014 - paid the capital gains tax plus the tax on the depreciation recapture. Then, the following year, Medicare punished us for making too much money, we had to pay an extra $5000 in Medicare premiums - Medicare is 'means' tested.
|
|
AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
|
Post by AgeOfEnlightenmentSCP on Feb 28, 2018 11:37:44 GMT -5
So I think I might owe for the first time federal. Around $4,000.00. I have to double check because I don't understand how it can be so much. It's my first year "retired" from the military. When I retired I set my taxes to withhold at the higher "0" deductions amount on my retired pay. At my new job, I did the same and so did my wife; so I don't understand, I never had a problem before with taxes.......My preliminary inputs into H&R Block are showing that I owe about $4,000.00.
Can this be right? Retired Pay is about $46K per year, I made $53K at job and wife made $32K
It's possible to owe $113,000 in taxes. Ask me how I know. And before you ask- yes, we pay estimated quarterly taxes. But in our business, it's hard to predict there'll be a Harvey, and Irma, and a Maria basically all at once. The fun part is that I have to keep paying a revised estimated quarterly tax payment based on this year-- and nothing like this may happen again- ever.
|
|
AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
|
Post by AgeOfEnlightenmentSCP on Feb 28, 2018 11:51:09 GMT -5
Phil- it's not quite that bad. The 131 million figure includes all returns, I'm pretty sure- not just those with refunds. Still, in 2015, which was the first reference I found, they issued $124 billion (so 0.12 trillion) in refunds. Yeah, that's a lot of interest-free money. And roughly half of this ($56 billion) was EITC, which is not money that is withheld. $56 billion in hidden welfare payments. Still, you have to work and filed taxes (in theory) to qualify-- so it's a step in the right direction.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,176
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Feb 28, 2018 12:52:18 GMT -5
And roughly half of this ($56 billion) was EITC, which is not money that is withheld. $56 billion in hidden welfare payments. Still, you have to work and filed taxes (in theory) to qualify-- so it's a step in the right direction. The tax season I worked at H & R Block I was amazed at the number of phone calls from people wanted to know where EITC tops out. I asked the seasoned pros about it and they said people quit their jobs when they hit the point of income where they receive the greatest EITC. I didn't think that way and was very surprised. I learned a lot that tax season about people who were not at all like me.
|
|
Deleted
Joined: Apr 28, 2024 19:23:44 GMT -5
Posts: 0
|
Post by Deleted on Feb 28, 2018 13:28:24 GMT -5
$56 billion in hidden welfare payments. Still, you have to work and filed taxes (in theory) to qualify-- so it's a step in the right direction. The tax season I worked at H & R Block I was amazed at the number of phone calls from people wanted to know where EITC tops out. I asked the seasoned pros about it and they said people quit their jobs when they hit the point of income where they receive the greatest EITC. I didn't think that way and was very surprised. I learned a lot that tax season about people who were not at all like me. Well, that's just stupid. It's not like the credit just disappears. It phases out pretty slowly and you're still coming out way ahead with income over credit. Or if it really bothers you and you can live off of nothing, put 100% of your income into a 401K after that point.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,176
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Feb 28, 2018 17:28:32 GMT -5
My feelings exactly. We were also supposed to get them to buy an H & R Block traditional for at least $750, if I remember the number right, which they would then come in and want to withdraw. They would then say they were not told about owing taxes and the 10% penalty for early withdrawal. They drummed in to our heads to get them to acknowledge that. I think it was one of the required signatures.
I managed to sell one IRA the entire tax season to a young man that fully understood the benefits of an IRA (probably should have done a Roth but....) I doubt he came back and took the money early.
You should have heard all the discussions about "we need to have a baby to keep the child tax credit". Those followed me to CPA firms, but not phone calls about EITC.
|
|
Deleted
Joined: Apr 28, 2024 19:23:44 GMT -5
Posts: 0
|
Post by Deleted on Feb 28, 2018 18:07:22 GMT -5
You should have heard all the discussions about "we need to have a baby to keep the child tax credit". Yeah, there's a money saver there!
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,176
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Feb 28, 2018 20:21:08 GMT -5
I laughed after every single one of those couples left the office. Think $1000 or whatever it is now will cover your costs for a year? No way.
|
|
wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,698
|
Post by wvugurl26 on Feb 28, 2018 21:57:10 GMT -5
You should have heard all the discussions about "we need to have a baby to keep the child tax credit". Yeah, there's a money saver there! That's what I told my DH that the costs for a child would far exceed the tax savings.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,908
|
Post by countrygirl2 on Feb 28, 2018 22:09:47 GMT -5
I think Phil we will come in under the amount to have to pay additional medicare premiums next year the way it looks now. Hubs keeps spending the income off the rentals on other rentals, I keep saying just stop. I think he is finally listening after this year. We have one more to get on the market and he is worrying about what he is going to do then, not just sit around. And no he won't go have fun, he doesn't know how. He spent his whole life working, that's all he knows. He has few friends left that are able to do much of anything mostly physically and also have no desire to, soooo. He is going to be a miserable person without a purpose in life. He does not like to hunt, fish, travel, nothing. We went up to see the kids and after 2 days he was going home or else. He said what am I going to do just sit there? Just wow. And I digress.
|
|
AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
|
Post by AgeOfEnlightenmentSCP on Mar 1, 2018 9:26:00 GMT -5
The tax season I worked at H & R Block I was amazed at the number of phone calls from people wanted to know where EITC tops out. I asked the seasoned pros about it and they said people quit their jobs when they hit the point of income where they receive the greatest EITC. I didn't think that way and was very surprised. I learned a lot that tax season about people who were not at all like me. Well, that's just stupid. It's not like the credit just disappears. It phases out pretty slowly and you're still coming out way ahead with income over credit. Or if it really bothers you and you can live off of nothing, put 100% of your income into a 401K after that point. It's OT, but mindset is everything- and this is poverty consciousness. And it doesn't do anyone any good.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,176
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Mar 1, 2018 9:29:44 GMT -5
Well, that's just stupid. It's not like the credit just disappears. It phases out pretty slowly and you're still coming out way ahead with income over credit. Or if it really bothers you and you can live off of nothing, put 100% of your income into a 401K after that point. It's OT, but mindset is everything- and this is poverty consciousness. And it doesn't do anyone any good. The mindset is what I was not aware of and what was explained to me in great detail.
|
|