minnesotapaintlady
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Post by minnesotapaintlady on Sept 25, 2024 9:09:42 GMT -5
So, I found this.
So, if they are doing it as part of normal wages the federal withholding might be withheld at higher than 22%.
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soupandstew
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Post by soupandstew on Sept 25, 2024 9:54:30 GMT -5
I will donate something also if you can get it done. I quit taking DD to Medicaid dentists after I saw the office. I'm sure the dentist was doing the best she could and not getting rich off them, but just didn't seem clean to me. Hubs called and they want him to have a scan or something up here, saw a small amount of blood in his urine. With the cancer so pervasive I'm so worried it is spreading. I am starting to panic underneath, I don't want to lose him. I'm about to break down and cry. I haven't so far but its getting closer. Yes, I'm worried. Have to make a bunch of calls today for various items and I'm getting nowhere so far. Need to sit back and take a deep breath and get myself together. I don't want to show I'm worried. We have found the modulars similar to ours are selling but at $55k! Wow, we gave $69k and that was a good price. I've seen a lot of nice ones selling for that. I would hate to lose money on it, but I don't want to keep pumping rent into it either. Hubs thinks by Dec it will shake out, I don't know. About ready to it, would save us money in the long run.I'm sure this will sound odd to many here, but I've never viewed my primary residence as an investment with an expected gain on sale; it's a place to live with benefits that outweigh rental. First off, with care in selection and barring something uncontrollable like a broad market collapse, one is likely to break even on sale, as well as potentially reaping income tax benefits from property tax and mortgage interest deductions during ownership. If one rents, there is no return on dollars spent and no tax benefits. By way of example, we paid $60K for our house 30 years ago and have put about $85-$100K into it since. For a number of years we did itemize including property taxes and mortgage interest. I realistically anticipate selling for $250-$275K. Even if we sold it lowball at $175K, we still lived here rent free so to speak. If we had instead rented at an average cost of $18-24K annually we would have sent $540-$720K with no return. You have owned that modular for about 18 months during which time you, your daughter, and husband enjoyed the company of your Washington family with utilities and lot rental out-of-pocket. If you had opted to get an 18-month lease on an apartment at $1500/month you would have spent $27K with no return. If you have a break-even sale at $80,000 you are still ahead of the game IMHO.
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chiver78
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Post by chiver78 on Sept 25, 2024 10:46:23 GMT -5
ok, that's way less scary, bc it's the jump to 32%. and if they are taxing it when issued at like 4t%, the math should work that I'm not as fucked as I initially thought? bc the last paycheck should bring me close-ish to last year's W2 with the near 4w of vacation time that will be included If you get your severance in 2025, the standard deduction will be $15,000 in 2025. so I'm looking at last year's tax return. I itemized, and it was $21,618. I file as single. someone asked, don't recall if it was you or not - my mortgage interest rate is 3%.
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chiver78
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Post by chiver78 on Sept 25, 2024 10:48:47 GMT -5
So, I found this. So, if they are doing it as part of normal wages the federal withholding might be withheld at higher than 22%.
this is all so damn complicated. ugh. I promise that I'm good with numbers. it's when those numbers are related to money and interest rates that I get confused. what I was told is that vacation payout will be included with the last paycheck, so that would be normal wages. the severance is lump sum at a later date, so I would think that's not normal wages. but our bonus payout gets taxed higher than 22%, and it seems like this would follow that plan.
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lurkyloo
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Post by lurkyloo on Sept 25, 2024 10:50:21 GMT -5
If you get your severance in 2025, the standard deduction will be $15,000 in 2025. so I'm looking at last year's tax return. I itemized, and it was $21,618. I file as single. someone asked, don't recall if it was you or not - my mortgage interest rate is 3%. Definitely worth itemizing then Mortgage interest deduction will decrease slightly since you’ve paid off a little more principle. ETA: Can you just call or email payroll and ask them how withholding is handled on severance? As much fun as your YM peeps are having arguing about it
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chiver78
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Post by chiver78 on Sept 25, 2024 11:13:09 GMT -5
so I'm looking at last year's tax return. I itemized, and it was $21,618. I file as single. someone asked, don't recall if it was you or not - my mortgage interest rate is 3%. Definitely worth itemizing then Mortgage interest deduction will decrease slightly since you’ve paid off a little more principle. ETA: Can you just call or email payroll and ask them how withholding is handled on severance? As much fun as your YM peeps are having arguing about it I wouldn't even know where to start with that. I work for a HUGE company. I've already got a few questions to send to the HR contact that they named in yesterday's call, I'll just add that one to the list.
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tallguy
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Post by tallguy on Sept 25, 2024 11:35:49 GMT -5
Definitely worth itemizing then Mortgage interest deduction will decrease slightly since you’ve paid off a little more principle. ETA: Can you just call or email payroll and ask them how withholding is handled on severance? As much fun as your YM peeps are having arguing about it I wouldn't even know where to start with that. I work for a HUGE company. I've already got a few questions to send to the HR contact that they named in yesterday's call, I'll just add that one to the list. I am a bit unclear on what the actual problem is and what the worry is. You will be able to pay the income tax from the severance check itself, so that shouldn't be a concern no matter how much it is. If it is about the amount withheld and worrying about under-withholding penalty, just make sure that you hit the safe-harbor amount. There is no penalty then. Or is it something else? If you are just curious about what the tax will end up being, there is no real reason to drive yourself crazy here.
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chiver78
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Post by chiver78 on Sept 25, 2024 11:50:22 GMT -5
I wouldn't even know where to start with that. I work for a HUGE company. I've already got a few questions to send to the HR contact that they named in yesterday's call, I'll just add that one to the list. I am a bit unclear on what the actual problem is and what the worry is. You will be able to pay the income tax from the severance check itself, so that shouldn't be a concern no matter how much it is. If it is about the amount withheld and worrying about under-withholding penalty, just make sure that you hit the safe-harbor amount. There is no penalty then. Or is it something else? If you are just curious about what the tax will end up being, there is no real reason to drive yourself crazy here. the worry is, if the severance lands in 2024 and kicks me into the next tax bracket, how screwed up will my taxes be? or, if they are withholding taxes on the payout, does that cover me so I don't end up owing a ton of money in April? ballpark, back of the napkin calc based off last year's numbers and what people have explained here about the various rates, it sounds like half of the severance would be at the 32% level.
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countrygirl2
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Post by countrygirl2 on Sept 25, 2024 12:02:06 GMT -5
I heard this morning she was in fair condition was shot in the leg. A neighbor took the kids in. The latest I heard was he is dead, whether by suicide or police I don't know.They just lived down the road from us. They had moved here about a year ago and must have been struggling likely financially. Hubs had talked too the guy before, about all I know.
Also a person in our next little town won $700,000 on a scratch off ticket, wish them well and use what is left after taxes wisely.
And than Goodall from Terre Haute won AGT, so some good news and one very bad news item.
I'm up and busy, one litter box cleaned, all the food bowls. List made for son of foods DD likes. DD and I breakfast and pills.
Starting on the other litter box and water fountain to clean. Need to make up DD's bed and put our clothes for her to wear in case they go somewhere.
Pack, need to take a big suitcase, darn. Because I want my hair dryer, and teeth cleaner and an extra pair of shoes. Only need 3 or 4 outfits, so won't be heavy. May throw in a raincoat, hubs said it was raining.
Need to wash DD's hair and help her with a bath today, to make sure she is good and .clean, she does ok, but sometimes I help her.
Take out trash and if I have time bake an apple pie for the kids.
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minnesotapaintlady
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Post by minnesotapaintlady on Sept 25, 2024 12:05:55 GMT -5
I am a bit unclear on what the actual problem is and what the worry is. You will be able to pay the income tax from the severance check itself, so that shouldn't be a concern no matter how much it is. If it is about the amount withheld and worrying about under-withholding penalty, just make sure that you hit the safe-harbor amount. There is no penalty then. Or is it something else? If you are just curious about what the tax will end up being, there is no real reason to drive yourself crazy here. the worry is, if the severance lands in 2024 and kicks me into the next tax bracket, how screwed up will my taxes be? or, if they are withholding taxes on the payout, does that cover me so I don't end up owing a ton of money in April? ballpark, back of the napkin calc based off last year's numbers and what people have explained here about the various rates, it sounds like half of the severance would be at the 32% level. What tallguy is saying is whether they withhold 22% or 40% doesn't really matter. You just make it right with your lump sum from your severance come tax time. Yeah, you'll want to know how much you need to set aside, but fortunately (or unfortunately however you look at it), it will be tax time right about the time you get in anyhow. Of course, ideally you get the severance pushed to 2025.
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tallguy
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Post by tallguy on Sept 25, 2024 12:12:43 GMT -5
I am a bit unclear on what the actual problem is and what the worry is. You will be able to pay the income tax from the severance check itself, so that shouldn't be a concern no matter how much it is. If it is about the amount withheld and worrying about under-withholding penalty, just make sure that you hit the safe-harbor amount. There is no penalty then. Or is it something else? If you are just curious about what the tax will end up being, there is no real reason to drive yourself crazy here. the worry is, if the severance lands in 2024 and kicks me into the next tax bracket, how screwed up will my taxes be? or, if they are withholding taxes on the payout, does that cover me so I don't end up owing a ton of money in April? ballpark, back of the napkin calc based off last year's numbers and what people have explained here about the various rates, it sounds like half of the severance would be at the 32% level. The obvious answer is that, absent any outlier reasons to do otherwise, you should want the severance to hit next year if you can. If you can't, you have to deal with it this year. Either way, it's going to go how it's going to go. Worrying about the tax does nothing for you. You can certainly pay it in a timely manner even if it is this coming April, and you can certainly avoid any penalty. What else is there that would be worth the worry? Let it go.
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countrygirl2
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Post by countrygirl2 on Sept 25, 2024 12:13:49 GMT -5
We just always figured 50% on bonuses or other pay and that covered it.
To work and get done.
My bed is stuck in the up position, not sure what I did. Usually unplug and plug back in will reset things, didn't this time and no time now to read the manual Later all
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chiver78
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Post by chiver78 on Sept 25, 2024 12:14:52 GMT -5
the worry is, if the severance lands in 2024 and kicks me into the next tax bracket, how screwed up will my taxes be? or, if they are withholding taxes on the payout, does that cover me so I don't end up owing a ton of money in April? ballpark, back of the napkin calc based off last year's numbers and what people have explained here about the various rates, it sounds like half of the severance would be at the 32% level. The obvious answer is that, absent any outlier reasons to do otherwise, you should want the severance to hit next year if you can. If you can't, you have to deal with it this year. Either way, it's going to go how it's going to go. Worrying about the tax does nothing for you. You can certainly pay it in a timely manner even if it is this coming April, and you can certainly avoid any penalty. What else is there that would be worth the worry? Let it go. I'm not worried like it's giving me chest pains or anything, I was just asking because I really am that financially illiterate that I didn't know how it all worked. I legit thought that it meant everything got taxed at the higher rate, but now I learned that's not the case. and yes, ideally it wouldn't hit til January.
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