RE: Income Tax Doubled

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tazzygirl -> RE: Income Tax Doubled (2/22/2011 5:02:57 PM)
Ken sent me his form. His withholding did double, as he stated. It doesnt say why.

jlf1961 -> RE: Income Tax Doubled (2/22/2011 5:22:49 PM)
After doing a little research, the increase in FITW was due to the expiration of the "making work pay" tax credit. Some increases almost doubled, some was as little as $46. Best advice I can give you is to adjust your withholding in reference to your retirement.

MrRodgers -> RE: Income Tax Doubled (2/22/2011 5:56:08 PM)
quote: ORIGINAL: rulemylife quote: ORIGINAL: KenDckey Rule, I have explained it a couple times, even offered to show you since you said it was bullshit. What more can I do? Ken, I don't agree with your politics but you are a reasonable person so I apologize if I was appearing unreasonable. But take a look at what you have just said. You are being paid by the government and complaining about the government cutting your money while on other threads you promote government spending cuts. If I may, he is not talking govt. programs that we all know could be cut, nor is he talking about other govt. obligations. It is my understanding that he refers to his FICA or FITW meaning the amount on your stub so labeled...has doubled. That is withholding has doubled not net income tax liability. At year end, his tax liability is still his adj. gross income and subject to the 2011 tax tables. One does not discover their net tax until one does all of the numbers in April. This sounds to me like a payroll error, or an expiring unknown filing status. I see either a much larger refund than is normal or some admin. error needs to be addressed, both or the end of a tax credit as stated above.

KenDckey -> RE: Income Tax Doubled (2/22/2011 6:22:05 PM)
When I calculated my taxes (I used H&R Block's program) After I went thru the topic on Making Tax Work my return increased. Since it expired, the whole thing doesn't make sense to me. My return went up because of making tax work so now my return will go up because they increase what they are taking every month. If that is the case, why not just let things equal out by not increasing what they take? I will never understand the tax code. I just put the number in the block that is needed. ugh

OrionTheWolf -> RE: Income Tax Doubled (2/22/2011 6:34:36 PM)
"IRS Notice 1036 provides a summary of the recent tax law changes and includes the 2011 percentage method income tax withholding tables. The Making Work Pay credit expired on December 31, 2010; therefore the 2011 income tax withholding tables do not reflect this credit. As a result, employees in a lower income tax bracket may see an increase in their tax withholding amount, while employees in a higher tax bracket may see a decrease." http://www.uwsuper.edu/finaid/news/federal-tax-withholding-tables-change-for-2011_article1274465 http://www.irs.gov/pub/irs-pdf/p15.pdf I warned all of my clients last year, so they were expecting this. The majority of people are not aware of it. Just like when the credit went into effect, people thought taxes went down; now that it has expired people automatically think taxes have gone up.

Musicmystery -> RE: Income Tax Doubled (2/22/2011 6:45:41 PM)
People aren't very bright.

DCWoody -> RE: Income Tax Doubled (2/22/2011 7:00:41 PM)
True dat. tl;dr - US federal income tax hasn't changed. Sadly unamazing how many thread titles ITF are simply untrue. Mebe there should be a 'no making shit up/check your facts' rule.

Brain -> RE: Income Tax Doubled (2/22/2011 7:27:25 PM)
You had a special circumstance for your situation or what accountants call an extraordinary item on a financial statement. Your situation does not apply to virtually all other Americans. quote: ORIGINAL: KenDckey quote: ORIGINAL: rulemylife quote: ORIGINAL: KenDckey Rule, I have explained it a couple times, even offered to show you since you said it was bullshit. What more can I do? Ken, I don't agree with your politics but you are a reasonable person so I apologize if I was appearing unreasonable. But take a look at what you have just said. You are being paid by the government and complaining about the government cutting your money while on other threads you promote government spending cuts. Actually it wasn't a complaint. It was a warning to everyone. I thought they said that we weren't getting a raise in our income tax for the middle class. Now that is a complaint However, telling everyone that it happened to beware isn't a complaint it is a fact.

KenDckey -> RE: Income Tax Doubled (2/22/2011 8:31:03 PM)
Brian That is why I suggested that everyone check their pay stub. At least they would know how it impacted them individaully. Besides, some people count on every penny being there. So far this year my pay has gone down about $250. Not all federal. All Govt. Not complaining. I was warned about the $200 drop in the other income so I wasn't surprised. And on the fed check I got no advance notice.

DomYngBlk -> RE: Income Tax Doubled (2/23/2011 8:14:31 AM)
Can you agree then to quit bitching everywhere about reducing benefits to other americans?

KenDckey -> RE: Income Tax Doubled (2/23/2011 8:40:01 AM)
DYB I have had my net income reduced by approximately 10% Actually a little higher with my two govt retirements. Not complaining at all. I knew it was coming on the larger part. Was told why in advance. What more can I ask for?

OrionTheWolf -> RE: Income Tax Doubled (2/23/2011 9:14:53 AM)
Not sure about reductions, but efficiency added into many of those areas would make the current allocations go further. Medicare fraud is a good example, with the increase in the Fraud investigations area they have been able to reclaim almost 4 times what has been allocated. I know someone will want a source, just google medicare fraud and read. I am sure other areas of expenditure could use this as well. As to the OP, there was not an increase in taxes, it is a change in witholding. The links I provided explain everything about that situation. What some people missed is that higher income earners will see a reduction in witholding, but that is deceiving and a projection of taxes owed should be done to make sure your current witholding will net close to 0 taxes owed at the end of the year. Some people use their tax return like a savings account, which is not a good idea. They should have their witholding set to have as close to a zero effect as possible. If they want a savings account, have an auto deduction of the amount go to a savings account. At least with a savings account you gain a little interest on your money, rather than the US government use it for free. quote: ORIGINAL: DomYngBlk Can you agree then to quit bitching everywhere about reducing benefits to other americans?

tazzygirl -> RE: Income Tax Doubled (2/23/2011 9:37:25 AM)
~FR Interestingly enough, Obama initiated a tax reduction last year, for most people, that equated to be about 20 dollars a week. I am currently listening to the kids at work complain about how much they arent getting back this year compared to the years before. They cant seem to understand they got it back through their paychecks.

Musicmystery -> RE: Income Tax Doubled (2/23/2011 10:10:51 AM)
quote: If they want a savings account, have an auto deduction of the amount go to a savings account. Or better yet, to a Roth IRA. The interest/appreciation will accumulate tax free, and in an emergency, the principal can be withdrawn without penalty (as it was already taxed). Or to a traditional IRA for the tax deferral benefit (but without the penalty-free withdrawal provision).

DomYngBlk -> RE: Income Tax Doubled (2/23/2011 11:12:48 AM)
quote: ORIGINAL: KenDckey DYB I have had my net income reduced by approximately 10% Actually a little higher with my two govt retirements. Not complaining at all. I knew it was coming on the larger part. Was told why in advance. What more can I ask for? I don't know...how about having a little compassion for people that aren't doing as well as you are......

EternalHoH -> RE: Income Tax Doubled (2/23/2011 12:03:04 PM)
Withholdings are not taxes. You could set a withholding of zero, and pay all your taxes in a lump sum. If too much is withheld, you get it back. Actually, the withholding levels are simply going back to where they should be, where more people will get refunds once again. The whole "make work pay" thing that reduced the withholding rate was just a hoax, trying to get more people to spend their refund throughout the year, injecting it into the economy sooner. Only a fragile few among us would interpret the loss of "tax refunds in paycheck installments" as the doubling of income taxes.

poise -> RE: Income Tax Doubled (2/23/2011 12:06:31 PM)
quote: ORIGINAL: EternalHoH Withholdings are not taxes. You could have a withholding of zero, and pay all your taxes in a lump sum. If too much is withheld, you get it back. And be faced with Estimated Tax Penalties? No Thanks. [:-]

Master504u -> RE: Income Tax Doubled (2/23/2011 5:05:28 PM)
Also, it is not possible for employers to reduce taxes by giving employees tax credits they might have coming at the year end. I know when I first started to work for the state of IL Department of revenue, they told me to claim single and 2 exemptios as the withholding was too high and to get it closer to a 0 liability or refund I should claim the extra exemption. Same thing goes now for people that are working but get a large refund, they can increase their withholding exemptions. Just have to remember to change it back when they no longer get the credit that caused the high refund. Can claim single and 0 for the last three months of the year if they feel they will owe income tax based on income to date times 4 and the current rate.

MrRodgers -> RE: Income Tax Doubled (2/23/2011 10:03:56 PM)
quote: ORIGINAL: KenDckey quote: ORIGINAL: DCWoody True dat. tl;dr - US federal income tax hasn't changed. Sadly unamazing how many thread titles ITF are simply untrue. Mebe there should be a 'no making shit up/check your facts' rule. Taxes didn't change but because his credit is gone...his taxes went up.

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