2022 Taxes are Done!

[nittanycheme]

Mar 29, 2023 16:30:59 GMT -5 Cookies Galore said:

I added our W2 info into Tax Act last month and saw we owed $450 so far, so I logged out and decided it was an April problem. It's going to be a rainy Saturday so I plan on filing this weekend. I anticipate we'll end up owing $500-$600 to Feds, $18 to the state as usual, and a credit for our local taxes. I pay the Philly wage tax instead of our local municipal EIT, hence the credit.

How does the Philly wage tax work?  I think that is why my local taxes are different this year - I live outside that area, and used to work outside that area.  But partway through the year I got a job that is in the Philly area although I still live outside of the Philly borders.  I've been trying to research, but its a bit confusing. 

[Cookies Galore]

Apr 3, 2023 16:11:10 GMT -5 nittanycheme said:

Mar 29, 2023 16:30:59 GMT -5 Cookies Galore said:

I added our W2 info into Tax Act last month and saw we owed $450 so far, so I logged out and decided it was an April problem. It's going to be a rainy Saturday so I plan on filing this weekend. I anticipate we'll end up owing $500-$600 to Feds, $18 to the state as usual, and a credit for our local taxes. I pay the Philly wage tax instead of our local municipal EIT, hence the credit.

How does the Philly wage tax work?  I think that is why my local taxes are different this year - I live outside that area, and used to work outside that area.  But partway through the year I got a job that is in the Philly area although I still live outside of the Philly borders.  I've been trying to research, but its a bit confusing. 

If your new employer is located in Philadelphia, then the non-resident wage tax is 3.44%. Most of the municipalities here (SEPA) have a local earned income tax that is just 1%. For easy math, let's pretend I make $100,000 annually. I technically only have an obligation of $1,000 for my local EIT, but I pay the city of Philadelphia $3440. I don't get to see any of that money (it was nice getting a wage tax refund when I was mandated to stay home during the pandemic, womp womp) and I just get a credit for local taxes paid each year. My local filing is done through Berkheimer. Bleh.

[steph08]

Our taxes are done, too. We are closer to even this year- $500-ish back from the Feds and $100 back from the state. Turns out my job that I started last January withholds a lot less than my previous jobs. We usually get a few thousand refunded from the Fed, which I don't mind.

With raises and my DH starting a new, higher paying job, I need to up our withholdings so we don't end up owing money.

[Cookies Galore]

Apr 3, 2023 17:33:33 GMT -5 steph08 said:

Our taxes are done, too. We are closer to even this year- $500-ish back from the Feds and $100 back from the state. Turns out my job that I started last January withholds a lot less than my previous jobs. We usually get a few thousand refunded from the Fed, which I don't mind.

With raises and my DH starting a new, higher paying job, I need to up our withholdings so we don't end up owing money.

I assume it's that damn updated W4, if you started a new job. We had our taxes perfect for years then husband filled out a new W4 at work (he didn't have to!!!!!) and mucked everything up. We got a surprise big tax bill last year because he waaaaaaaaaayyyyyyyy under withheld (I didn't pay much attention to pay stubs in 2021, apparently).

[wvugurl26]

The new withholding tables seem all kinds of wacky. My brother's always over withheld federal to pay state. He's in another state than his employer's headquarters and they refuse to withhold his state.

He did an extra $60/week and still doesn't have enough to pay his state bill. I've done his taxes for years so it was surprising how low his fed refund was.

I'm all done. I filed ours last Friday. I delivered copies of the returns to dad and my brother this weekend. I got my mom's new laptop setup and turbo tax installed. Did her return Sunday. Even managed to get the printer to work with the new laptop. Why pay additional money to file a state when you owe them?

[Rukh O'Rorke]

dropped all documents with my tax guy tonight! 2 weeks earlier than last year, hot dog!!


Plus he has an assistant this year, so hope I don't get into the extension pile again. Will see what happens! off my desk anyway....

[jerseygirl]

Mar 31, 2023 17:06:00 GMT -5 jerseygirl said:

We should also do more withholding. But biggest ‘lump’ not withholding is dividends from brokerage account
I have a zoom meeting with my financial advisor on Monday
Will ask about withholding

Withholding not available for dividends from brokerage account. Will need to include for quarterly estimate taxes

[azucena]

We owe $3700 federal (oofta) and will get back $300 from the state.

CPA says it's largely due to my bonus, so expect to owe even more on 2023. Going to take the lazy way out and just write the check and not worry about narrowing in withholding in 2023. Just continue to be conscious of saving so we can just write whatever check is needed. Definitely a first world problem.

[wvugurl26]

I thought I was done with taxes. Apparently I have to go check on my sister in laws. FIL has run it six ways from Sunday and while some turn out better than others, it's still a $6k tax bill.

I maintain these new withholding tables are garbage. I'm fairly certain they have steady W2 income with no big bonuses. I think all of the payouts were received in 2021 for brother in law's father's estate. They are withholding married one and they have a child to claim. DH and I make more with no child and claim single. Ours works out to be a small refund.

Our state is pretty narrow on amount owed before penalties kick in. I'm not here to give large interest free loans but I'm also not paying a double digit interest rate on underpayments.

I also found out FIL mentioned to DH about me doing all the returns he does. Not a chance! Nope!

[TheOtherMe]

I agree the new withholding tables are garbage.  I used to figure out what I would owe based on last year's taxes, subtract what was already withheld and divide by the number of months left.  That's how I got within $100 this year.  The new W-4 doesn't let that be done.  

At least, as of next year, Iowa is not taxing retirement income.  I had already paid in 3 months of withholding before I did that.  I do have interest income but taxes on that are not going to be as much as I have paid in.  Iowa is so slow on refunds that I prefer to owe a small amount.

[azucena]

Ah, so it may be the new withholding tables causing me to owe. Still not interested in figuring it out closer. Going to lean into the luxury of just paying it.

[wvugurl26]

Apr 13, 2023 10:12:45 GMT -5 azucena said:

Ah, so it may be the new withholding tables causing me to owe. Still not interested in figuring it out closer. Going to lean into the luxury of just paying it.

My observation is that if you married and higher income, they definitely are not working out. I'm sure my SIL will come up with it but coming on the heels of a $15k+ bill for a new septic system it won't be pleasant.

They can do what they want but my advice to them will be change their withholding or prepare for a similar tax bill going forward.

I pulled up the W-4 instructions and it says withholding is likely to be wrong if you are married and you both work. There's a way to fix it but you have to follow certain steps and do a new W4 for the highest earner.

DH and I left our federal as single and when I did state I checked married withhold at higher single rate and even then we are generally on the line for state.

[Deleted]

I started mine on Saturday, thinking we had a pretty uncomplicated year.  After entering everything, I gave up and decided professional help was needed.  They are done now and filed.  We are getting a refund. 

We never qualified for education credits or used 529 funds before, so figuring out how to allocate 529 funds, scholarship, and credits was beyond me.  For one more year of filing with DD as a dependent, I am not going to learn it.  

[minnesotapaintlady]

Apr 13, 2023 11:04:03 GMT -5 @pooks said:

We never qualified for education credits or used 529 funds before, so figuring out how to allocate 529 funds, scholarship, and credits was beyond me.  For one more year of filing with DD as a dependent, I am not going to learn it.  

I told DS I would teach him how to do his taxes AFTER he was done with college and not subject to Kiddie Tax on his UTMA.  It's a big game of Tetris doing his taxes moving money around all over the place trying to figure out the ideal allocation of funds since what gets done on his return affects mine and vice versa. 

[Deleted]

Apr 13, 2023 11:17:15 GMT -5 minnesotapaintlady said:

Apr 13, 2023 11:04:03 GMT -5 @pooks said:

We never qualified for education credits or used 529 funds before, so figuring out how to allocate 529 funds, scholarship, and credits was beyond me.  For one more year of filing with DD as a dependent, I am not going to learn it.  

I told DS I would teach him how to do his taxes AFTER he was done with college and not subject to Kiddie Tax on his UTMA.  It's a big game of Tetris doing his taxes moving money around all over the place trying to figure out the ideal allocation of funds since what gets done on his return affects mine and vice versa. 

See that made my head hurt just reading it and my degree is accounting. 

[jerseygirl]

Mailed in federal and state Tuesday. Ugh owed about $6800 federal and $2500 state
Closed consulting business so that might have caused some? But thinking most was not doing estimated for our SS and dividends. And Jerseyguy pension, dealing with the pension company is excruciatingly time consuming and frustrating. Have had to do this last year just to change banks for direst deposit. So just ignored contacting them to withhold.
For some reason ?? Only sent one quarterly estimated, need to do better for this year
Sending those checks really hurts, whether quarterly of at filing. Withholding $ just seems to be unnoticeable

[andi9899]

I owe $5 to Federal and I'm getting $237 back from KS. I'm just glad I don't owe a bunch of money!

[Cookies Galore]

Apr 13, 2023 10:42:43 GMT -5 wvugurl26 said:

Apr 13, 2023 10:12:45 GMT -5 azucena said:

Ah, so it may be the new withholding tables causing me to owe. Still not interested in figuring it out closer. Going to lean into the luxury of just paying it.

My observation is that if you married and higher income, they definitely are not working out. I'm sure my SIL will come up with it but coming on the heels of a $15k+ bill for a new septic system it won't be pleasant.

They can do what they want but my advice to them will be change their withholding or prepare for a similar tax bill going forward.

I pulled up the W-4 instructions and it says withholding is likely to be wrong if you are married and you both work. There's a way to fix it but you have to follow certain steps and do a new W4 for the highest earner.

DH and I left our federal as single and when I did state I checked married withhold at higher single rate and even then we are generally on the line for state.

The new "simplified" W4 is so stupid it hurts. There's zero nuance. I technically have two jobs (job 2 is my monthly council stipend - a whopping $156/month before taxes) and hubs has one, so we can't check the box that is supposedly supposed to make everything so simple and easy. When I redid both our W4s last year after discovering the snafu, the IRS online worksheet has me withholding an extra $95 a pay period and husband an extra $50 (he's paid weekly). We owed less than $1000 this year, so I guess it worked. But I miss no bill.

[Deleted]

The IRS site makes it ridiculously easy to pay online so I'm lighter by $4,528.  DH agreed to withhold on his 2023 RMD so that will help next year.

[thyme4change]

Because I quit my job, we got a big refund 😀

[saveinla]

Apr 13, 2023 10:42:43 GMT -5 wvugurl26 said:

Apr 13, 2023 10:12:45 GMT -5 azucena said:

Ah, so it may be the new withholding tables causing me to owe. Still not interested in figuring it out closer. Going to lean into the luxury of just paying it.

My observation is that if you married and higher income, they definitely are not working out. I'm sure my SIL will come up with it but coming on the heels of a $15k+ bill for a new septic system it won't be pleasant.

They can do what they want but my advice to them will be change their withholding or prepare for a similar tax bill going forward.

I pulled up the W-4 instructions and it says withholding is likely to be wrong if you are married and you both work. There's a way to fix it but you have to follow certain steps and do a new W4 for the highest earner.

DH and I left our federal as single and when I did state I checked married withhold at higher single rate and even then we are generally on the line for state.

We just do married, but withholding at higher rate or something like that.

[mollyanna58]

In order to download tax information from certain financial institutions into TurboTax,  I have to sign into an Intuit account. I have an account but don't remember the password.  Intuit won't recognize my information, probably because I don't do my taxes online through Intuit.  I remember having this same problem last year, and wound up entering the info from my 1099 instead of importing it.  Frustrating.

[giramomma]

We still haven't done our taxes yet.

[Mrs. Dinero]

We will be paying $5,900 to fed on Monday and received a refund of $400 from state.

[Bonny]

Got both of my refunds this week. Yay!

[bookkeeper]

I filed our Federal taxes in March before we headed north.  When DH takes a 401k withdrawal, 20% of the amount is withheld for federal income tax.  Since our effective tax rate is around 8%, there is plenty of money sent in to cover us for the rest of our income.  We got around $4000 refunded and it took two weeks for the refund to hit after filing electronically.

Years ago, I worked with a wise man who had a CPA practice.  At the end of a tax appointment, he would figure the effective tax rate for each client ( federal tax paid / gross income ).  As I went forward with my tax planning and filing, I started doing the same.    When you track your effective tax rate and your income is somewhat consistent, it is easy to figure out if you are withholding the correct percentage.  

Retirement income is soooo different from wage income.  When we were working, our effective tax rate was 15%.  Add to that 6.2 % for Social Security, and poof there's a lot of money---gone.

[wvugurl26]

I went over the numbers for my sister in law last night. FIL did it right. I was correct about the problem, there's not enough withholding. She filed a new W4 last year when she got a good size raise and bonus. The problem was masked last year because they had a crap ton of mortgage interest.

They have both verified their withholdings are set to married, zero. BIL was trying to increase his and his HR was giving him a bunch of crap. SIL can do hers electronically so she'll go that route. She makes a good bit more anyway.

I pulled out my W2. My box 1 was $1k higher than SIL. I had $5k more in federal taxes withheld.

[jeffreymo]

The new W4 form (2020) had a lot of MAJOR changes to it. Employees were not required to complete the new form so their withholding were calculated by the pre-2020 IRS firm.
Many employees (and a surprising number of CPA’s and tax professionals) are trying to use the logic of the pre-2020 form and apply it to the new W4 form. So some of the confusion is related to that and also converting to the new form in the middle of a year.

They’ll select Single with no other info just like they’re used to and they’ll expect the same result. The issue is that the new form already accounts for you claiming yourself, plus spouse if Married is selected, or Household if HOH is selected. There is no longer such a thing as claiming zero.

The IRS intentionally made these changes so that they would be issuing fewer and smaller refunds and so that if completed properly the W4 withholding should produce a breakeven situation.

Situations I see on a daily basis:
Part time employees who have zero withholding on those wages but owe tax because their primary full-time wages push them into a tax bracket. The withholding tables are only able to calculate on information provided so a Single person earning $10,000 on just a PT job would owe zero tax - so the table calculates zero. The W4 form should be updated to indicate that additional income which is a new field on the form.

Married employees who don’t select the “Spouse that works/2nd job” box or account for the spouses wages elsewhere. . For this situation, the tables are calculating the tax as this person being the sole income/provider for the couple. Even when both spouses complete it this way they will experience a shortage because the withholding tables will be applying the full Married standard deduction to both of them.


Dependent deductions - because there are no longer the typical personal exemptions, some employees will claim themselves and spouse in the form of a $500 “deduction”. This new field on the form is intended for Child and Dependent credit amounts. Meaning the $2000 per child under 17, or $500 adult dependent whom is an actual dependent not just a household member. It provides the credit throughout the year for those who select it rather than “receiving” it when they file their return.

Highly comped individuals who receive large bonuses are only having the federal supplemental rate of 22% withheld on the payments so they owe at the end of the year because they’re in a higher marginal bracket.

The IRS has a very detailed tool/estimator on their website to help with everyone’s unique tax situation and it will advise on how to populate the W4 so that by end of year the employee is not shocked by a large deficit.

[Cookies Galore]

Apr 15, 2023 10:02:18 GMT -5 jeffreymo said:

The new W4 form (2020) had a lot of MAJOR changes to it. Employees were not required to complete the new form so their withholding were calculated by the pre-2020 IRS firm.
Many employees (and a surprising number of CPA’s and tax professionals) are trying to use the logic of the pre-2020 form and apply it to the new W4 form. So some of the confusion is related to that and also converting to the new form in the middle of a year.

They’ll select Single with no other info just like they’re used to and they’ll expect the same result. The issue is that the new form already accounts for you claiming yourself, plus spouse if Married is selected, or Household if HOH is selected. There is no longer such a thing as claiming zero.

The IRS intentionally made these changes so that they would be issuing fewer and smaller refunds and so that if completed properly the W4 withholding should produce a breakeven situation.

Situations I see on a daily basis:
Part time employees who have zero withholding on those wages but owe tax because their primary full-time wages push them into a tax bracket. The withholding tables are only able to calculate on information provided so a Single person earning $10,000 on just a PT job would owe zero tax - so the table calculates zero. The W4 form should be updated to indicate that additional income which is a new field on the form.

Married employees who don’t select the “Spouse that works/2nd job” box or account for the spouses wages elsewhere. . For this situation, the tables are calculating the tax as this person being the sole income/provider for the couple. Even when both spouses complete it this way they will experience a shortage because the withholding tables will be applying the full Married standard deduction to both of them.


Dependent deductions - because there are no longer the typical personal exemptions, some employees will claim themselves and spouse in the form of a $500 “deduction”. This new field on the form is intended for Child and Dependent credit amounts. Meaning the $2000 per child under 17, or $500 adult dependent whom is an actual dependent not just a household member. It provides the credit throughout the year for those who select it rather than “receiving” it when they file their return.

Highly comped individuals who receive large bonuses are only having the federal supplemental rate of 22% withheld on the payments so they owe at the end of the year because they’re in a higher marginal bracket.

The IRS has a very detailed tool/estimator on their website to help with everyone’s unique tax situation and it will advise on how to populate the W4 so that by end of year the employee is not shocked by a large deficit.

The estimator was actually helpful because the form itself was not intuitive. Since I have a second job that pays a whopping $1800 a year, we can't check the "only two jobs between us" box and I would have no idea how to properly have extra withheld because the worksheet is just a wall of numbers to me.

[lurkyloo]

New withholdings suck!

We both elected married but withhold at higher single rate.  We are also having extra withheld for both fed and state (had to specify dollar amounts per paycheck).  But, got blindsided by a major bonus for DH where they withheld CA tax not MD, and refused to fix it.

Finals: we owe 11k to feds, 8k to MD, and getting 14K back from CA.  

Part of the problem is that for the bonus withholding was at 24% fed but effective tax rate on it was 35%.  Actually, most of the problem.

First world problems, I know. Still kind of sick to my stomach at the sheer amounts here.  In a good way?