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Post by Adelard of Bath on Feb 6, 2023 11:26:28 GMT -5
Doing taxes, and I like to do them the old fashioned way, on paper, with the 1040 forms etc. Actually, to say "on paper" isn't totally correct - I use the fill-in pdf files they provide.
Anyways, for whatever reason, federal withholdings at wife's job is over $2000 less than the 2021 tax season. She says she didn't change anything.
Curious if anybody else noticed anything, if anybody has looked... This is an annoyance to me, because now (naturally) we are going to owe the fed almost that amount they didn't withhold. Except we annoyingly have to come up with it, like "surprise!" Last year it was pretty even, the way I like it.
I haven't done the state yet, looks like they withheld more, so maybe it will all work out.
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Post by brp on Feb 6, 2023 11:59:59 GMT -5
I haven't looked at the details for us, but I find owing to be a plus. We pay with a credit card and can get more value from the benefits than the 1.75% or so fee we have to pay. We pay estimated taxes in addition to withholding and this is all on CC.
Cheers.
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Post by WDWGoof on Feb 6, 2023 12:32:34 GMT -5
I had a feeling something has changed as I know two separate people who never had to pay in the past, now having to pay thousands this year. Afraid to do ours!
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Post by zulaya on Feb 6, 2023 12:36:48 GMT -5
OMG...this happened to my son. He didn't change anything and despite owning his home in 2022 for the first full tax year, he owes nearly $4000 -- and NOTHING changed.
I haven't done ours yet as I'm still waiting on one final item. Now I'm also worried.
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Post by bubster on Feb 6, 2023 13:06:50 GMT -5
I do DD’s taxes since she got divorced a few years ago. A couple of years were really screwed up because of the divorce and Covid relief checks so she never knows if she will owe or not. Last year she got a new job and has been working a weekend job so her income came up by 20K. Was prepared for her to have underpaid to both federal and state. She must have adjusted her withholding appropriately because tidy refunds from both. I do not have last year’s paperwork to check and see if things had changed.
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Post by henrycpa on Feb 6, 2023 13:55:36 GMT -5
They amended the tax withholding tables in 2022 to withhold more tax based upon the increased standard decductions
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Post by brp on Feb 6, 2023 14:28:34 GMT -5
They amended the tax withholding tables in 2022 to withhold more tax based upon the increased standard decductions If the standard deduction went up, wouldn't that result in reduced withholding since,presumably, taxable income would go down for the same gross?
Cheers.
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Post by Adelard of Bath on Feb 6, 2023 14:32:45 GMT -5
They amended the tax withholding tables in 2022 to withhold more tax based upon the increased standard decductions But I am seeing less withheld for the 2022 year than in the 2021 year? |
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Post by lephelps on Feb 6, 2023 18:53:01 GMT -5
They amended the tax withholding tables in 2022 to withhold more tax based upon the increased standard decductions But I am seeing less withheld for the 2022 year than in the 2021 year? Looking at DH's pay stubs for Dec-2021 and Jan-2022 (same salary, same 401k contribution, same W-4 in effect but an increase pre-tax deductions for 2022 due to benefits and HSA updates), it looks like his federal withholding decreased by .44% per pay period in 2022 but that's likely explained by the increase in 2022 pre-tax deductions. My employer changed from bi-monthly to bi-weekly pay periods in 2022 so I don't have an easy comparison point for myself. FYI, we still have pre-2020 W-4s on file. One would think any adjustments to tax tables and withholding would be comparable for both pre-2020 and new W-4 forms but if your wife has a 2020 era W-4 on file, maybe the difference is related to adjustments made for whatever calculations are involved with the newer W-4? I certainly hope not as either DH or myself will need to update our W-4 this year since we lost older DS as a dependent and the younger DS aged out of child tax credits last year.  I like just saying "x allowances/exemptions" vs. trying to calculate withholding however it's done on the "new" W-4. |
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Post by henrycpa on Feb 6, 2023 21:04:07 GMT -5
They amended the tax withholding tables in 2022 to withhold more tax based upon the increased standard decductions If the standard deduction went up, wouldn't that result in reduced withholding since,presumably, taxable income would go down for the same gross?
Cheers.
I typed wrong. STD Deduction went up so they withheld less per tax tables. Hit me too. |
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Post by Adelard of Bath on Feb 6, 2023 21:25:06 GMT -5
I typed wrong. STD Deduction went up so they withheld less per tax tables. Hit me too. See I wish they wouldn't do things to make people feel like they are getting bigger paychecks...I mean, yeah you are getting a bigger paycheck i.e. less is being taken from you every pay period. But then come April, they are going to get their money whether you gave it to them every pay period or whether you give it to them in one payment in April. So I feel sorry for people who have no clue what is going on...by which I figure most people. Standard deduction increased from 25,100 in 2021 (married filing joint) to 25,9 so it's $800 for the two of us. But her withholdings decreased by well over 2k, yet the tax calculation (for our bracket) changed only ever-so-slightly, decreasing by about $250. So they lowered our tax by .22(800)-250 or approx $450 yet they felt it was appropriate to withhold 2500 less over the year. |
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I like just saying "x allowances/exemptions" vs. trying to calculate withholding however it's done on the "new" W-4.