That is not dead which can eternal lie, and with strange aeons bring us some web forums whereupon we can gather
http://garbi.online/forum/
If you get bumped up high enough to lose or reduce the Child Tax Credit that can make a huge difference.El Guapo wrote:That aside, I fear the answer is a mix of a higher marginal rate on the additional income plus losing a couple credits / deductions at the higher income level.
Yeah, everything's cruising along fine in the tax software until I enter my wife's income. Which is not that much, BUT appears to be getting hit at 28%, and takes us over the threshold where we lose the child tax credit.A nonny mouse wrote:That may be true, but when it bumps you from the 15% to 25% (why such a huge F-ing jump??) with dual income, it sucks big eggs. It does make a huge jump in how much they want, despite the theoretical percentage charges. And in order to try and not get hit so hard, I would have to have so much extra taken out of each paycheck (or my wife) that we would bring squat home. I never used to mind tax season, but the last few years have sucked. ANd this is with a kid, since the state has pretty much eliminated 529 tax write off and child tax credit.Isgrimnur wrote:Tax brackets don't work that way. Each dollar earned is taxed individually. If you earn $9,225, all of that is taxed at 10%. If you earn $9,226, that next dollar is taxed at 15%. That extra dollar you earned costs you $0.15 in tax, not an extra $461.25 in a 5% bump on the other $9,225.
Tax calculator with bracket breakdown.
I don't understand how my wife and I both claim 0/0 and still get hit. /grumble grumble
Ugh... So how does that work. We will hit that this year, as last year my wife only worked from Aug - Dec, and we almost hit that number. I have three kids, do I lose the tax credit on all three if my wife and I make over 110k?Isgrimnur wrote:The child tax credit begins phase out at $110k.
To compare, $110k in Boston is equivalent to $74k in DFW.
Thank you. That's what I thought. I'm just too impatient. I'm used to having my taxes done and accounted for in late January.pr0ner wrote:You won't get anything from Scottrade until later this month. And unrealized losses are unrealized, so there are no tax implications until you sell the stock and realize any gain/loss you've incurred. You will have to pay taxes on the dividends you've earned, regardless, whether they're paid in cash directly to you or you reinvest them (as you should be doing).
IntuitRMC wrote:Ugh... So how does that work. We will hit that this year, as last year my wife only worked from Aug - Dec, and we almost hit that number. I have three kids, do I lose the tax credit on all three if my wife and I make over 110k?Isgrimnur wrote:The child tax credit begins phase out at $110k.
To compare, $110k in Boston is equivalent to $74k in DFW.
The child tax credit is reduced or eliminated if your adjusted gross income is above certain thresholds. The credit amount is reduced by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income (AGI) exceeds the threshold amount.
I'd tell you to just find one that's been vacant, squat and file for adverse possession, but the days where that was easy in Texas has sailed.El Guapo wrote:I have floated the idea to my wife of moving to the Fort Worth office, seeing as houses are available there for roughly 50 cents apiece. That was mostly in jest, BUT...
Cool. Thanks for the information. So it's not as bad as I thought it could be. But it means I might actually need to increase my withholding amounts, because we will start to lose some of those 3k in child tax credit. <sigh>Isgrimnur wrote:IntuitRMC wrote:Ugh... So how does that work. We will hit that this year, as last year my wife only worked from Aug - Dec, and we almost hit that number. I have three kids, do I lose the tax credit on all three if my wife and I make over 110k?Isgrimnur wrote:The child tax credit begins phase out at $110k.
To compare, $110k in Boston is equivalent to $74k in DFW.
The child tax credit is reduced or eliminated if your adjusted gross income is above certain thresholds. The credit amount is reduced by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income (AGI) exceeds the threshold amount.
How is the economy there these days? Maybe those will be available again in a few years?Isgrimnur wrote:I'd tell you to just find one that's been vacant, squat and file for adverse possession, but the days where that was easy in Texas has sailed.El Guapo wrote:I have floated the idea to my wife of moving to the Fort Worth office, seeing as houses are available there for roughly 50 cents apiece. That was mostly in jest, BUT...
Not a problem. Tax time is fun for all once you get into investing.LordMortis wrote:Thank you. That's what I thought. I'm just too impatient. I'm used to having my taxes done and accounted for in late January.pr0ner wrote:You won't get anything from Scottrade until later this month. And unrealized losses are unrealized, so there are no tax implications until you sell the stock and realize any gain/loss you've incurred. You will have to pay taxes on the dividends you've earned, regardless, whether they're paid in cash directly to you or you reinvest them (as you should be doing).
We haven't made the deadline without an extension in years. I ordinarily don't send the CPA my company file until I can afford to pay him, and the delayed K-1 prevents him from completing our personal return (which I'm also a slacker about putting together). This year, though, I sent him my company file in mid January, so we've at least got an outside shot at it.stessier wrote:And you've got extra time this year!
And for Kraken, MA gets even more time because of Patriots Day!Why is Tax Day April 18?
The regular tax return filing deadline is April 15. However, due to the Washington D.C. Emancipation Day holiday being observed on April 15 instead of April 16, 2016, Tax Day is on the following Monday.
Spouses with similar sized paychecks get the shaft.A nonny mouse wrote:I don't understand how my wife and I both claim 0/0 and still get hit. /grumble grumble
Isgrimnur wrote:Make sure you check your property for any possible clay faces.
Yeah, it really is a shame that the tax code works that way, but for years the wife made next to nothing and I made all the money. Now that she is back to full time teacher status, our salaries are still not close, but her's is a lot higher than it used to be and taxes are certainly changing for us because of it.The Meal wrote:Spouses with similar sized paychecks get the shaft.A nonny mouse wrote:I don't understand how my wife and I both claim 0/0 and still get hit. /grumble grumble
US-based tax preparation firm TaxSlayer has admitted that thousands of user records may have been compromised in a data breach, leaving a slew of financial accounts and tax filings at risk. The breach, blamed on what it has called an "unauthorised third party", was identified on 13 January as part of an ongoing security review.
The firm has said it believes usernames and passwords may have been accessed by the unknown hackers. Additionally, social security numbers and even previously filed tax returns are suspected to have been put at risk. According to SC Magazine, the hack has affected a total of 8,800 TaxSlayer users.
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I claim 0/0, get taxed like a motherfucker throughout the year and still get hit hard every year. Having the standard deduction and nothing else, really, to add, just destroys you.The Meal wrote:Spouses with similar sized paychecks get the shaft.A nonny mouse wrote:I don't understand how my wife and I both claim 0/0 and still get hit. /grumble grumble
The wife and I aren't even close in terms of salary, we don't own the house and of course have a child. I still pay taxes like a mo'fo' every year and want to burn shit down. I don't know what type of scam I have to run but my accountant has indicated there's nothing else that can be done in terms of sheltering money or tweaking withholding with my potential variable contractual income. I honestly don't know how people get ahead in 'Merica because I'm constantly bleeding money.LordMortis wrote:I'm not sure how I'd deal with a marriage penalty and no children to offset it, other then be angry.
+lots except Neal and I are too high in salaries. It's great being so "rich." We don't own our home, and can't claim the kid anymore as of this year. We both claim 0 exemptions AND have almost $800 a month extra withheld on top, both have 401ks, Neal has an HSA and we still seem to owe every year (although it looks like this year we'll get back a 3 figure refund, woot!)Smoove_B wrote:The wife and I aren't even close in terms of salary, we don't own the house and of course have a child. I still pay taxes like a mo'fo' every year and want to burn shit down. I don't know what type of scam I have to run but my accountant has indicated there's nothing else that can be done in terms of sheltering money or tweaking withholding with my potential variable contractual income. I honestly don't know how people get ahead in 'Merica because I'm constantly bleeding money.LordMortis wrote:I'm not sure how I'd deal with a marriage penalty and no children to offset it, other then be angry.
Please accept this post as my annual "Taxes are done / F-taxes" entry, as required.
I imagine people with two incomes and no children wipe their tears on the stacks of hundred dollar bills they have laying around the house.LordMortis wrote:I'm not sure how I'd deal with a marriage penalty and no children to offset it, other then be angry.
Last time I ran the numbers on "married, filing separately" the tax bill increased $7000.killbot737 wrote:So do you dual income married folks work out the numbers both ways every year? You aren't actually required to file together.
But "married filing separately" has different tax brackets than "single."killbot737 wrote:So do you dual income married folks work out the numbers both ways every year? You aren't actually required to file together.
Correct me if I'm wrong, but it's not so much that the taxes are higher, it's how your taxes are deducted from your pay. As Isgrimnur noted, you get taxed at rate X until you hit the next bracket. Then you are taxed at rate Y until the next bracket.killbot737 wrote:So do you dual income married folks work out the numbers both ways every year? You aren't actually required to file together.
If my wife had carried out her threat to leave me, and neither of us filed for divorce by the end of the year, I could very well see it happening as filing separate, she might break even or get a pittance of a refund while jointly, she gets to share in my annual fisting. The fisting would get an added spiked glove for me filing separate, which would concern her not one bit.stessier wrote: I don't know why married filing separately even exists - it seems like the deductions you lose can't make up for the savings. Maybe it works out for people above 500k or something?
I trust my accountant completely to run whatever numbers make the most sense in a way that benefits us in the greatest way and for the last 10 years he just contacts me and immediately when he's done and starts apologizing.killbot737 wrote:So do you dual income married folks work out the numbers both ways every year? You aren't actually required to file together.
I drive a 13 year old car and I think my wife's is 7 or 8. Our house is our largest source of debt but given how much money is siphoned away each month in taxes (property, income) I'm astounded we could possibly owe any more money...and yet, every year...MHS wrote:The thing about not knowing how people get ahead really resonates. I know where I went off course- I got into an incredible amount of debt. But I really have a hard time figuring how out 2 pretty intelligent people with good jobs can still be so far behind the 8 ball.
So sorry Smoove...you owe...
Did you have to pay AMT maybe? This nailed me last year, and at first I thought it was a mistake I made in Turbotax, so redid everything, but yeah. It's real, and it really jacks up the tax hit.El Guapo wrote:Taxes are currently driving me crazy. Our family income got a significant boost this past year with me getting a new job (yay!). Unfortunately the tax software is showing us getting hit with a big tax payment (boo!), that I can't yet figure out how that could be accounted for solely by the new income. Trying to crunch the numbers a few different ways.
coopasonic wrote:I imagine people with two incomes and no children wipe their tears on the stacks of hundred dollar bills they have laying around the house.LordMortis wrote:I'm not sure how I'd deal with a marriage penalty and no children to offset it, other then be angry.
It's not so much that you get the shaft, as the default formula for multiple spouses that both have sizable income is completely wrong. Having both people withhold 0 would only work if we didn't have a progressive income tax system.The Meal wrote:Spouses with similar sized paychecks get the shaft.A nonny mouse wrote:I don't understand how my wife and I both claim 0/0 and still get hit. /grumble grumble
Yup. Last year my accountant suggested we adjust (i.e. increase) the wife's withholding as to better estimate what was relatively steady work for me and to try and offset the annual fisting. I didn't because paying more money on top of what we already pay really grinds my gears. The capper is that for 2015 I actually had a reduction in contract hours to the tune of a 20% pay cut (about two fences). If that pay cut still results in me needing to fork over money to the Peoples Republic of NJ or the federal government? Heads will get flown.RunningMn9 wrote:This of course doesn't really help variable income Smoove, as withholding for him is different I think.
