2022 Tax Annoyance

[nittanycheme]

I am posting here, since I need to vent a bit, and its not something that I can really do in real life.  My company is spinning off the division I work in.  Apparently about halfway through the year, they moved us to some other company entity.  So, even though my paystub looked continuous throughout the year, I ended up getting 2 W2's, each with about 1/2 my income for the year on them.  Now, I owe about $2000 in federal taxes.  Over the past few years, my taxes have been pretty stable since my DH and I have kept the same jobs, so I had figured out our withholdings so we were usually within $100 of what we owe.  I am so annoyed with my company - not that they care anymore since I'm going with the spinoff.  I thought Turbotax was calculating it wrong!    My DH says I should complain, but I'm not even sure who to complain to now!  And I probably over-reacted by changing my withholdings for this year in response, but I guess I'll check part way through the year to see how close we are.  Painful.....   At least my state taxes are ok since I work in a flat tax rate state, so they weren't messed up.

[busymom]

I've got a different tax annoyance.  A credit union I'm a member of was taken over by a larger credit union.  No 1099's are being sent out from the former credit union, and the larger credit union is only including the money earned since they took over last year.  I've got paperwork to back up how much interest I made, but the whole situation makes me mad, as I always want the proper paperwork in case of an audit.  

[susana1954]

Mar 6, 2023 16:22:15 GMT -5 nittanycheme said:

I am posting here, since I need to vent a bit, and its not something that I can really do in real life.  My company is spinning off the division I work in.  Apparently about halfway through the year, they moved us to some other company entity.  So, even though my paystub looked continuous throughout the year, I ended up getting 2 W2's, each with about 1/2 my income for the year on them.  Now, I owe about $2000 in federal taxes.  Over the past few years, my taxes have been pretty stable since my DH and I have kept the same jobs, so I had figured out our withholdings so we were usually within $100 of what we owe.  I am so annoyed with my company - not that they care anymore since I'm going with the spinoff.  I thought Turbotax was calculating it wrong!    My DH says I should complain, but I'm not even sure who to complain to now!  And I probably over-reacted by changing my withholdings for this year in response, but I guess I'll check part way through the year to see how close we are.  Painful.....   At least my state taxes are ok since I work in a flat tax rate state, so they weren't messed up.

I'm confused.  Did company 2, for lack of a better word, take out substantially less tax?  And you didn't notice that your paycheck was substantially higher?  That's over $300 more take-home a month if you divide $2k/6.  Or did you get some sort of raise that confused things?

[taz157]

Mar 6, 2023 18:45:07 GMT -5 susana1954 said:

Mar 6, 2023 16:22:15 GMT -5 nittanycheme said:

I am posting here, since I need to vent a bit, and its not something that I can really do in real life.  My company is spinning off the division I work in.  Apparently about halfway through the year, they moved us to some other company entity.  So, even though my paystub looked continuous throughout the year, I ended up getting 2 W2's, each with about 1/2 my income for the year on them.  Now, I owe about $2000 in federal taxes.  Over the past few years, my taxes have been pretty stable since my DH and I have kept the same jobs, so I had figured out our withholdings so we were usually within $100 of what we owe.  I am so annoyed with my company - not that they care anymore since I'm going with the spinoff.  I thought Turbotax was calculating it wrong!    My DH says I should complain, but I'm not even sure who to complain to now!  And I probably over-reacted by changing my withholdings for this year in response, but I guess I'll check part way through the year to see how close we are.  Painful.....   At least my state taxes are ok since I work in a flat tax rate state, so they weren't messed up.

I'm confused.  Did company 2, for lack of a better word, take out substantially less tax?  And you didn't notice that your paycheck was substantially higher?  That's over $300 more take-home a month if you divide $2k/6.  Or did you get some sort of raise that confused things?

Yeah that.

[souldoubt]

Thirded.  If your pay didn't change then when the "new" company applied your pay rate to the tax tables (based on pay frequency and W4 elections) your take home should have been the same. 

[Empire the P.A.]

My little tax snafu is I did not realize I never received a W2 for a separate retro pay from my old job and now have to scramble to get a copy from payroll before I see my tax guy. 

[The Walk of the Penguin Mich]

My suggestion is to look at last years tax statement to see where the discrepancies lie.

[Opti]

Mar 6, 2023 16:49:12 GMT -5 busymom said:

I've got a different tax annoyance.  A credit union I'm a member of was taken over by a larger credit union.  No 1099's are being sent out from the former credit union, and the larger credit union is only including the money earned since they took over last year.  I've got paperwork to back up how much interest I made, but the whole situation makes me mad, as I always want the proper paperwork in case of an audit.  

I found out my credit union will not mail out forms unless interest is over $10, which it rarely is. I can't get them to send me paper statements no matter what I do, so I'm going to have to assume effective zero interest.

[taz157]

Mar 7, 2023 7:36:01 GMT -5 Opti said:

Mar 6, 2023 16:49:12 GMT -5 busymom said:

I've got a different tax annoyance.  A credit union I'm a member of was taken over by a larger credit union.  No 1099's are being sent out from the former credit union, and the larger credit union is only including the money earned since they took over last year.  I've got paperwork to back up how much interest I made, but the whole situation makes me mad, as I always want the proper paperwork in case of an audit.  

I found out my credit union will not mail out forms unless interest is over $10, which it rarely is. I can't get them to send me paper statements no matter what I do, so I'm going to have to assume effective zero interest.

The $10 for banks/credit unions has been in place for several years. You can look at either your last year’s statement or first statement of this year and it generally YTD interest list or prior year YTD interest.

[Cookies Galore]

We had a major tax snafu last year with a $3600 balance due to Feds. Husband's employer gave everyone an update W4 form in 2021 and I told him he didn't need to fill it out because neither one of us has changed jobs. He filled it out at work, anyway (I guess they told him to, I don't know). I think he just checked the box that says two incomes in the house, which, not true since my council stipend is W2 income. Well, he used to have more taxes taken out of his paycheck because our system was I cover benefits so he can cover a little bit more of the tax burden (we have yours, mine, ours accounts). It worked out perfectly for years. Zero issues, always got about $300 back, which is a small enough amount that I'm not going to play with withholdings. I did not pay attention to his (lack of) federal taxes taken out on his pay for 2021 and he worked a lot of OT the past couple of years, so bigger checks made sense. I figured it out quickly when I went to do our taxes, oof. I caught it in March of last year and redid both our W4s. We owe about $500 this year and I am thinking all will normalize by next year's tax time. Hopefully.

So I would assume the new tax law and the split company would be why you owe so much but it doesn't make sense because your paychecks remained consistent. Whatever happened it just sucks. No one likes a massive surprise bill!

[TheOtherMe]

Many years on banks and credit unions.  That hasn't changed in years and years.  It's on your bank statements.  If they don't mail statements, do you have online access?  Your statements are there.  

I go off the YTD amount because the credit union issues their 1099 so late.  They mail them on January 31, which is the date required by law.  

Their statement doesn't include the "Thank Use" money issued for certain categories.  It states on the web page that is considered interest.  I include that on my tax return also.

[nittanycheme]

Mar 6, 2023 18:45:07 GMT -5 susana1954 said:

Mar 6, 2023 16:22:15 GMT -5 nittanycheme said:

I am posting here, since I need to vent a bit, and its not something that I can really do in real life.  My company is spinning off the division I work in.  Apparently about halfway through the year, they moved us to some other company entity.  So, even though my paystub looked continuous throughout the year, I ended up getting 2 W2's, each with about 1/2 my income for the year on them.  Now, I owe about $2000 in federal taxes.  Over the past few years, my taxes have been pretty stable since my DH and I have kept the same jobs, so I had figured out our withholdings so we were usually within $100 of what we owe.  I am so annoyed with my company - not that they care anymore since I'm going with the spinoff.  I thought Turbotax was calculating it wrong!    My DH says I should complain, but I'm not even sure who to complain to now!  And I probably over-reacted by changing my withholdings for this year in response, but I guess I'll check part way through the year to see how close we are.  Painful.....   At least my state taxes are ok since I work in a flat tax rate state, so they weren't messed up.

I'm confused.  Did company 2, for lack of a better word, take out substantially less tax?  And you didn't notice that your paycheck was substantially higher?  That's over $300 more take-home a month if you divide $2k/6.  Or did you get some sort of raise that confused things?

Around the same time they did that, I got a new position with a raise.  Along with an incorrect change in work location - they accidentally moved me to being based out of one of our NJ sites vs. the PA site I was supposed to be in.  So, that really distracted me trying to get that corrected with its associated change in taxes.  In general, I had expected to see my paycheck increase with the raise that I got.  I can't even go back and look at my old paystubs since I relied on the electronic system, and we can't access that anymore. I had printed my ones from december to have just in case, but not for the entire year.

[busymom]

Mar 7, 2023 10:37:38 GMT -5 TheOtherMe said:

Many years on banks and credit unions.  That hasn't changed in years and years.  It's on your bank statements.  If they don't mail statements, do you have online access?  Your statements are there.  

I go off the YTD amount because the credit union issues their 1099 so late.  They mail them on January 31, which is the date required by law.  

Their statement doesn't include the "Thank Use" money issued for certain categories.  It states on the web page that is considered interest.  I include that on my tax return also.

    The former credit unions online website has "disappeared".  If you try to go into it, it automatically redirects you to the new credit union.  And, the new credit union only shows interest since they took over last Fall.  I've dealt with takeovers before, but this is the first time this has happened.  Oh well, I'll make do...

[saveinla]

If no-one sends me a doc, its not on my taxes. I pay so much already that the govt can do without the 10$ interest. If I get audited for that, I will deal with that.

[TheOtherMe]

Since no record is sent to the government for less than $10, that will not be the reason you get audited.  The tax on less than $10 is de minimis and not worth the government's time to deal with.