US WITHOLDING TAX PROCEDURS CHANGE NEXT YEAR
by blondie 6 Replies latest jw friends
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blondie
I guess no one is concerned about getting to the end of this year and finding out they aren't getting a refund again. Now is the time to increase your withholding if you don't want that to happen. I have so many people on facebook posting about how they got a refund for $1000 and this year have to pay $1000. The IRS will not notify you. Your tax preparer should tell you (if you hire one) or you might get the message on tv news or newspapers, or online news.
I'm glad I checked and I'm glad I did. If you start now and figure out how much you are paying now and how much, estimate, of tax you will owe this year, subtract what you would owe from the WH you are now having taken out.
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Still Totally ADD
blondie thank you for the heads up. The tax breaks the rich got come with a price. That's us who are not rich. Take care. Still Totally ADD
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JeffT
The first thing you need to do is decide if you want a big refund of your own money back, or do you want to take it home and spend it now. Which is more useful to you? With a modicum of planning and restraint you can put the money in the bank and collect interest on it. This will give you more money next year if you just hang on to it. Remember, the government is happy to take your money now and give it back to you later with no interest.
We need to make basic financial management a required course for high school graduation. Also a simpler tax code.
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RubaDub
If you want a "refund" on your taxes and you work for a company that does the direct deposit, take the amount you otherwise would have sent to the government and have it deposited into a separate interest bearing account. Perhaps a money market account.
When you do your taxes, you will have the money there in the account and will have earned a few bucks interest. If the government "manages" the money, you get nothing.
Rub a Dub
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nonjwspouse
JeffT and Rubadub, THANK YOU for voicing reason on tax refunds.
So many many people think it is a good idea to let the government be your "savings account" for a tax refund. It is absurd!
I give the government as little as possible and put the estimated amount I may need into savings just like you said.
Then if I don't owe it, I have it immediately plus interest.
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just fine
My paychecks were bigger this year and my refund smaller, which is how it should be.
I made more money and ended up paying less in taxes overall 2018 vs 2017. Still ended up paying $25,000 in just Federal Income Taxes though, even with all my deductions for/from AGI (vs almost $30,000 in Federal Income Tax in 2017).
My husband and I are not rich but middle class, so the tax reform did help us.