Bummer...Just Finished My Federal Tax Return

[Christine]

...and I owe still.

My tax bill for this year came out to be $21,000. This is $3,000 higher than last year even though we only made $6,000 more this year.

I contributed $13,000 to my 401K, and $10,000 to my flexible benefits plan. I also paid in an extra $115.00 per pay period toward my federal tax on top of what automatically comes out (married filing "0").

With two kids and a house, I just find this amazing. I guess "on paper" to the IRS it looks like we make money, but the fact that we live in DC, well, believe me, we aren't rolling in dough by any means.

Oh, well, life goes on...

 

[Pin Wizard]

I've paid every year since I got married with the exception of when I was in school. Terrible.

 

[RadioFanatic]

last year, I cried when I found out how much my dh and I owed. It almost doubled from the previous year even though we didn't make much more than the previous year.

So I immediately added $85 from each paycheck towards taxes, so I'm very nervous to see what happens this year.

 

[kilee]

Don't you just hate that. We almost always owe. Last year and this year were an exception because we attempted or own business that failed miserably and didn't even make 25% of what it cost to run it. Needless to say that made for nice returns. But this is the last one- back to the way it was.

 

[MagicKingdom05]

Some years I get more than other years, but normally I don't have to pay anything. I do have them take out more each pay check then normal so I get a nice refund in the end so maybe that makes a huge difference. Being able to deduct both morgage interest and poperty taxes also helps as well.

 

[Art Vandalay]

I'd rather pay at the end of the year. Otherwise I'm giving the government an interest free loan.

 

[tmt martins]

Well I also live in the DC area MD. and I figured last year with fed,state,local,income taxes + other taxes and fees it was over 47% of my income .

They tax my money then retax it the charge me a fee on stuff they say they are reduceing taxes on .On top of that all they are doing for me is taking away my rights on top of it .

The biggest problem is you can't vote them out because the next is just as bad.They look out for them sevles and they're intrest in the companies they own.

I wish I could pay by credit card.Then when they don't deliver on promises made I could dispute it and get all my money back.

 

[Rock'n Robin]

I am pretty worried. For the last few years, like Kilee, we had a failing business that finally went out of commission totally in 04. So for 05 we both had "real" jobs (meaning DH was making a regular paycheck) and I just hope we had enough federal taken out. I have a pension, 403 B, and we have a mortgage and a second, hope that helps.
Even when we got refunds from state and federal, we owe our city. We both pay 2.25% to the cities where we work. The city tax here is 1.5%, but they only give .75% credit for tax paid elsewhere and make us pay another .75% on top of it, so we pay 3% local taxes--plus a .5% school income tax!
Robin M.

 

[Independent]

So, I am curious. Has anyone benefitted from the much touted "tax cuts" that this administration keeps bragging about? I know that we haven't. In fact, last year, the year of the great tax cuts, was the first time we had ever payed federal taxes. Usually we just break even.

Soaring deficit, lackluster earnings and everybody I talk to (and it seems everybody so far on this thread) is actually paying more taxes. What gives?

 

[Christine]

So, I am curious. Has anyone benefitted from the much touted "tax cuts" that this administration keeps bragging about? I know that we haven't. In fact, last year, the year of the great tax cuts, was the first time we had ever payed federal taxes. Usually we just break even.

Soaring deficit, lackluster earnings and everybody I talk to (and it seems everybody so far on this thread) is actually paying more taxes. What gives?

Not sure. Actually, I have "paid" taxes for years--even under the previous administration. But the last two years have been HORRENDOUS. My tax bill is definitely a higher percentage of my income than it used to be.

I'm thinking that it wouldn't be so bad if my cost of living wasn't so high. I just think that person living in Indiana making $100K per year is probably feeling a LOT more comfortable than the person making $100K in D.C. Yet, I'm sure we're paying the same tax bill.

 

[Christine]

Well I also live in the DC area MD. and I figured last year with fed,state,local,income taxes + other taxes and fees it was over 47% of my income .

They tax my money then retax it the charge me a fee on stuff they say they are reduceing taxes on .On top of that all they are doing for me is taking away my rights on top of it .

The biggest problem is you can't vote them out because the next is just as bad.They look out for them sevles and they're intrest in the companies they own.

I wish I could pay by credit card.Then when they don't deliver on promises made I could dispute it and get all my money back.

Come on over to Virginia!!

Eleven years ago, when I moved from Maryland to Virginia, I got a $150 per month "pay raise" because of less state taxes being withheld. Not only that, I historically had to pay state tax at the end of the year when I filed (in Maryland). In Virginia, I still get a refund (despite being raked over the coals by the Feds). And yes, we do pay personal property tax but it isn't even close to what Maryland was garnishing from my paycheck. This year I paid $472 is personal property tax on 3 cars.

 

[Disney-Kim]

...and I owe still.

My tax bill for this year came out to be $21,000. This is $3,000 higher than last year even though we only made $6,000 more this year.
oh, well, life goes on...

I would have a heart attack. do they let you make payments??

 

[Dan Murphy]

.....Has anyone benefitted from the much touted "tax cuts"...

Yes, as without them, you would have paid more.

 

[dmslush]

I would have a heart attack. do they let you make payments??

LOL, I would have died also! $21000 is almost what I earn a year working at the shelter!!!

 

[Art Vandalay]

Yes, as without them, you would have paid more.

Yep. I've benefitted from them.

On a side note, Virginia is definitely much better for taxes than Maryland.

 

[cruisnfamily]

I would have a heart attack. do they let you make payments??

I don't think she has to come up with all of that. I'm sure that was the total tax, much of which was taken out of her paycheck during the year. I'm sure the amount now due is much, much smaller than $21,000

 

[Christine]

I would have a heart attack. do they let you make payments??

Actually, the $21,000 is not what I owe the government. If you do you tax return, you will see what your bill for the year is. Mine is $21,000. Through withholding (both for DH and I, not just me), we only withheld $20,400-something throughout the year. So, I don't have to come up with $21,000, "only" about $500. Which is good. However, I just look at how much I'm sending them and I can't believe it's not enough!

 

[golfgal]

I did our taxes last night and we are getting a huge refund this year mainly because DH switched jobs/companies this year and had to pay into Social Security again after starting with the new company and "overpaid' that so we will get that back. Minnesota also has some education credits/deductions for things like private school tuition, music lessons, instruments, etc. and the twins are in a Catholic school and we bought DS a new trombone this year so we were able to deduct quite a bit for that, which was nice.

 

[msdznyduck]

I contributed $13,000 to my 401K, and $10,000 to my flexible benefits plan. I also paid in an extra $115.00 per pay period toward my federal tax on top of what automatically comes out (married filing "0").

YIKES.........I would have nothing left to live on. I couldn't possible put that much in a 401 and flexible spending acct. I got a memo from work with our last paycheck reminding us that we are able to put X amount into our 403 and because I am over 50... can put X additional into my account. It came out to about $23,000......I would need a $20,000 raise to be able to put that much in.

 

[jackskellingtonsgirl]

You guys are scaring me! We got a crummy refund last year, but at least it was a refund! It was less than half of what we got in previous years.

This year I made more money and so did DH, so we are probably going to get slammed. Not to mention the loan he took against the 401K at his old company, not understanding the terms of the loan!!! Now we have that mess to contend with as well! Unfortunately we don't have either of his W2 forms yet so I can't tell what the actual damage is.