2022 Taxes are Done!

[lurkyloo]

All this and between maxing 401k and hsa and the extra withholdings, I’m taking home about 30-35% of my actual paycheck  

[jeffreymo]

Apr 15, 2023 11:45:59 GMT -5 lurkyloo said:

All this and between maxing 401k and hsa and the extra withholdings, I’m taking home about 30-35% of my actual paycheck  

I know what you mean. It’s funny to look at on paper. I’m interviewing with a company that has a stock purchase plan and I’ve already started to calculate how I can reduce the new salary down to nothing.

[anciana]

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.

Thank you so much for writing all this out! We need to change our withholdings as our situation has changed and the new W4 was anything but simple. I already saw that I’ll need to check the IRS website after gathering both our paycheck statements to help us figure out how. What a headache

[mollyanna58]

Equiniti (stock transfer agent) is doing website maintenance THIS WEEKEND so I can't download a missing 1099.  

[Knee Deep in Water Chloe]

We signed off yesterday. We had an error in that DH switched employers June 30 / July 1.  The second employer unknowingly paid too much into his social security. We're getting back a few thousand dollars. Our accountant also warned us that we need more paid toward federal next year as we're going up a bracket. 

[MN-Investor]

I've e-filed my returns a week ago. I've also prepared and e-filed my brother's return and three of his daughters.

I'm going to help my Seattle sister e-file her return in the next day or so. Her wife has been the financial person in their family, and has prepared their return. They held off filing since they owe. Unfortunately, my sister-in-law is now in the final weeks (days?) of pancreatic cancer, so my non-techie sister will have to e-file. I'm glad I have the experience with TurboTax and can walk my dear sister through it.

[minnesotapaintlady]

I'm getting a tad bit concerned that state hasn't drawn the payment due on the kid's returns.  I had it set for the 14th and Federal came out promptly on that day, but nothing even showing as pending for state.  I have always done immediate payment when I file, this is the first year that I set it to draw a couple months out. 

[taz157]

Apr 16, 2023 10:21:51 GMT -5 Knee Deep in Water Chloe said:

We signed off yesterday. We had an error in that DH switched employers June 30 / July 1.  The second employer unknowingly paid too much into his social security. We're getting back a few thousand dollars. Our accountant also warned us that we need more paid toward federal next year as we're going up a bracket. 

I’m guessing your DH made over the social security wage limit between the 2 employers. The second employer did what they were supposed to do.

Both withhold social security wages because they separate entities. DH would get a refund of social security tax withheld in excess of social security wage limit on his total wages.

[taz157]

Apr 16, 2023 12:35:30 GMT -5 minnesotapaintlady said:

I'm getting a tad bit concerned that state hasn't drawn the payment due on the kid's returns.  I had it set for the 14th and Federal came out promptly on that day, but nothing even showing as pending for state.  I have always done immediate payment when I file, this is the first year that I set it to draw a couple months out. 

I wouldn’t be too worried. Some states take a day or so after you request it. I’ve noticed that when I had sales and use tax or income tax payments for the company I work for.

[minnesotapaintlady]

Apr 16, 2023 14:10:27 GMT -5 taz157 said:

Apr 16, 2023 12:35:30 GMT -5 minnesotapaintlady said:

I'm getting a tad bit concerned that state hasn't drawn the payment due on the kid's returns.  I had it set for the 14th and Federal came out promptly on that day, but nothing even showing as pending for state.  I have always done immediate payment when I file, this is the first year that I set it to draw a couple months out. 

I wouldn’t be too worried. Some states take a day or so after you request it. I’ve noticed that when I had sales and use tax or income tax payments for the company I work for.

They took it out today. 

[giramomma]

Our taxes are officially done.

[Empire the P.A.]

Paid my taxes and back to being broke.  
Going to go and bake some cookies to make myself feel better. 

[taz157]

Filed our taxes about 15 minutes ago.  Federal has already been accepted while the state will probably be accepted tomorrow.

[Opti]

Going to have to file extensions tomorrow. Spent part of my sick day dealing with lease renewal drama and locking in a potential PCP with a May appointment.

Hope to file both returns by month end if at all possible. 
Empire, make yourself good cookies. 

[Opti]

Apr 16, 2023 12:29:13 GMT -5 MN-Investor said:

I've e-filed my returns a week ago. I've also prepared and e-filed my brother's return and three of his daughters.

I'm going to help my Seattle sister e-file her return in the next day or so. Her wife has been the financial person in their family, and has prepared their return. They held off filing since they owe. Unfortunately, my sister-in-law is now in the final weeks (days?) of pancreatic cancer, so my non-techie sister will have to e-file. I'm glad I have the experience with TurboTax and can walk my dear sister through it.

Poor DSIL, hope her remaining days are not too hard. 

[daisylu]

Got ours efiled just before 5pm yesterday, after spending an hour cleaning through paperwork to find our w2s. I've usually put them in the same place every year, until now. Shocked that DH never even opened his. He is usually chomping at the bit.

This was the first year with 0 dependents, still getting back $1,000 federal and $249 state. Both were accepted last night.

[jeffreymo]

We’re going to file an extension and wire a payment to the IRS that should cover us. State should be a small refund.

Started to try to file with TurboTax but we have some business loss carry-forwards to offset some profit this year and I’m not positive what that number is or how to report it. So I think worst case we owe $3k which we will pay today, but possibly that will get refunded to us as I think our W2 withholdings were accurate.

I’ve never used TurboTax until this past weekend so I’m interested to see how it’s prep looks side by side with the returns that our CPA will prepare.

[MN-Investor]

Apr 18, 2023 2:45:41 GMT -5 Opti said:

Apr 16, 2023 12:29:13 GMT -5 MN-Investor said:

I've e-filed my returns a week ago. I've also prepared and e-filed my brother's return and three of his daughters.

I'm going to help my Seattle sister e-file her return in the next day or so. Her wife has been the financial person in their family, and has prepared their return. They held off filing since they owe. Unfortunately, my sister-in-law is now in the final weeks (days?) of pancreatic cancer, so my non-techie sister will have to e-file. I'm glad I have the experience with TurboTax and can walk my dear sister through it.

Poor DSIL, hope her remaining days are not too hard. 

My dear SIL passed away very early yesterday morning.

Yesterday also happened to be the fifth anniversary of my dear husband's passing. Five years ago I had our tax return done, I just needed to do a quick review and print it out. Then we would sign it and send it in. My sweetie, though, suffered a sudden, unexpected heart attack before dawn on the 17th, the date taxes were due in 2018. I still remember how unsettled I felt for the rest of that day. I ended up printing out an extension and sending that in.

Hopefully my sister got a good night's sleep last night and I'll walk her through the few things she needs to do in order to e-file her return today.

[taz157]

Apr 18, 2023 10:11:22 GMT -5 MN-Investor said:

Apr 18, 2023 2:45:41 GMT -5 Opti said:

Poor DSIL, hope her remaining days are not too hard. 

My dear SIL passed away very early yesterday morning.

Yesterday also happened to be the fifth anniversary of my dear husband's passing. Five years ago I had our tax return done, I just needed to do a quick review and print it out. Then we would sign it and send it in. My sweetie, though, suffered a sudden, unexpected heart attack before dawn on the 17th, the date taxes were due in 2018. I still remember how unsettled I felt for the rest of that day. I ended up printing out an extension and sending that in.

Hopefully my sister got a good night's sleep last night and I'll walk her through the few things she needs to do in order to e-file her return today.

I’m sorry about both the passings.

[jerseygirl]

Mn-investor such a very sad day for you. A rough time today be kind to yourself . Maybe a special treat or look at beautiful scenery

[TheOtherMe]

MN-Investor   My condolences

[haapai]

Extensions have been mailed.  The feds owe me and I owe the state $2. 

Instead of getting cracking on actually filing, I'm adding another quarter a week to my state withholding.  I understand how irrational this is. 

[Rukh O'Rorke]

Apr 16, 2023 12:29:13 GMT -5 MN-Investor said:

I've e-filed my returns a week ago. I've also prepared and e-filed my brother's return and three of his daughters.

I'm going to help my Seattle sister e-file her return in the next day or so. Her wife has been the financial person in their family, and has prepared their return. They held off filing since they owe. Unfortunately, my sister-in-law is now in the final weeks (days?) of pancreatic cancer, so my non-techie sister will have to e-file. I'm glad I have the experience with TurboTax and can walk my dear sister through it.

so glad you are able to help with this.

condolences

[Rukh O'Rorke]

Apr 18, 2023 10:11:22 GMT -5 MN-Investor said:

Apr 18, 2023 2:45:41 GMT -5 Opti said:

Poor DSIL, hope her remaining days are not too hard. 

My dear SIL passed away very early yesterday morning.

Yesterday also happened to be the fifth anniversary of my dear husband's passing. Five years ago I had our tax return done, I just needed to do a quick review and print it out. Then we would sign it and send it in. My sweetie, though, suffered a sudden, unexpected heart attack before dawn on the 17th, the date taxes were due in 2018. I still remember how unsettled I felt for the rest of that day. I ended up printing out an extension and sending that in.

Hopefully my sister got a good night's sleep last night and I'll walk her through the few things she needs to do in order to e-file her return today.

I'm so sorry!

[Rukh O'Rorke]

Last I heard from the tax prep place was that it looked like all docs were included and I'd hear form them when doing the returns for me, that was on the 6th after I emailed to check if they had everything after uploading all doc a few days before and not hearing anything.

Sent a request for an update today at noon, and have not heard back. Tax place has all 5 star reviews on yelp - except one 1 star, but I'm really feeling the communication is an issue. It is almost close of business, and I have no idea if my taxes will be filed or if an extension is needed. I've been checking email multiple times daily for the past week in case returns were ready and now i could really use a nap - but I'm sure they are working late today and IF my returns are in the queue for today I will need to be alert to make sure I pay and sign to get them filed. If I'm just going to have to get an extension today - I'd like to take a nap! 

I don't think the added person has helped much! I had more communication last year even if it was just a email blast to everyone saying he can't get back to everyone individually and that he would file an extension if he wasn't able to get to your taxes by the deadline....

Now, I don't even have that. will an extension be filed for me? idk.......

Le sigh!

[Rukh O'Rorke]

finally heard at about 10 p.m. that I was on a list to cross check if everything entered to file tonight or not or if extension will be filed. So - they were still working....and I'm still waiting to hear.....but at least confirmation that an extension will be filed.

Wished I'd taken the nap!

What time is the cut off? Is it midnight in your time zone? I had one thing say it was midnight EST - but I don't think that is right. midnight pacific time? 


what were they going to do with all the people who's taxes they are completing after hours if they didn't tell anyone to be looking for them?  Seems some people can't stay up that late......

When can I go to bed? 8:30 am meeting with boss, lol!

[MN-Investor]

We successfully got my sister's tax return filed!

It wasn't until early this evening that we could finish it up. I'm so glad I had used TurboTax myself so I could walk my sister through the minor items she needed to input. My heart sank when she got an email saying the IRS rejected it. But she followed the instructions and re-input the AGI from last year's return. I think she had put a comma in the field originally. I told her to just put numbers in the field. ACCEPTED! YAY! What a relief!

[TheOtherMe]

The deadline was midnight local time.  

[Rukh O'Rorke]

Apr 19, 2023 9:59:08 GMT -5 TheOtherMe said:

The deadline was midnight local time.  

thanks! I know you know for sure!!

[jerseygirl]

Mailed in IRS and state returns April 13
IRS already cashed the check.