I just did my taxes

[smokew11]

We'll def be above the standard deduction...over $8k in mortgage interest, real estates taxes and pmi, and another $6k or so for daycare

[JRS1386]

Originally Posted by Climb2safety

Are you using software or doing it by hand?

Either way, if something changes like this, you gotta go line by line and compare years to find either what changed or a mistake..

Originally Posted by Tiduwho

This is good advice. Try to pinpoint the difference by looking at your prior year tax return.

If you are using a software that just asked you questions, you can still look at the finished prior year return vs this year page by page and see if there is a number that was positive last year and negative this year or vice versa, or if there is a new tax form schedule.

Used Turbotax and CK. I know the difference. I have a second job, but I don't get how I can owe taxes when I'm still in the same tax bracket and paid taxes throughout the year. Its all alien to me

[scrock25]

Originally Posted by smokew11

We'll def be above the standard deduction...over $8k in mortgage interest, real estates taxes and pmi, and another $6k or so for daycare

Wait, are you able to deduct the entire amount of childcare in PA? Here in NYs you can only deduct like 30% of whatever over a certain dollar amount or some shit like that. Dumb.

[scrock25]

Yeah just found it, my mistake for referencing The states, we're talking federal returns here. It's 35% of qualifying expenses of up to 3000 for one child or 6000 for two or more

[Tiduwho]

Originally Posted by JRS1386

Used Turbotax and CK. I know the difference. I have a second job, but I don't get how I can owe taxes when I'm still in the same tax bracket and paid taxes throughout the year. Its all alien to me

No, I don't mean the general difference, the second job.

I mean the specific difference aka Line 24 of Form 8825 or whatever. You can figure out the reason. Maybe it's as simple as the second job isn't taking out enough for taxes each payroll check, but maybe it is something else. Find it.

[Mickey Carson]

Originally Posted by scrock25

Yeah just found it, my mistake for referencing The states, we're talking federal returns here. It's 35% of qualifying expenses of up to 3000 for one child or 6000 for two or more

Just an FYI...if your salary is $43k or higher, you'll only qualify for 20% (not 35%).

You'd only receive 35% if your salary is lower than 15k.

[YouNeverKnow25]

income, not salary

[Noles20]

My taxes used to be so easy. Now my wife is a pet sitter and they don't withhold anything for taxes, they just report the income. Last year was the first year and I figured it all out on Turbo Tax but it was not an easy task.

[JRS1386]

Originally Posted by Tiduwho

No, I don't mean the general difference, the second job.

I mean the specific difference aka Line 24 of Form 8825 or whatever. You can figure out the reason. Maybe it's as simple as the second job isn't taking out enough for taxes each payroll check, but maybe it is something else. Find it.

Sorry for the potentially dumb question, but I am in the 25% tax bracket so does that mean each job should withhold 25% of my total pay?

My income tax withheld was only 10% of my pay from my second job

[YouNeverKnow25]

that would be way too high

your effective rate is almost universally much lower than your gross tax bracket

[Nick@Night]

Originally Posted by spoot388

try this: https://www.freetax.com/

i used it last year and got twice as much back as the year before when i had someone at HR Block do it for me and make me pay $170.

Great site. Compiled my shit, ready to file.

[daveshookme]

Filed today. Getting about 2k back. Cost about 70 to file. Whatever

[DIDriveOut2SPAC]

This DIYtax website is getting me plenty more money back, but doesnt seem to ask me for form specific information for things like turbo tax does (ex. 1098-E forms) seems to just trust me on my moving expenses this year. What gives?

[justink]

Originally Posted by DIDriveOut2SPAC

This DIYtax website is getting me plenty more money back, but doesnt seem to ask me for form specific information for things like turbo tax does (ex. 1098-E forms) seems to just trust me on my moving expenses this year. What gives?

as far as i remember, turbo tax just trusts you on moving expenses and things too. nobody check this shit unless you get audited. in which case... bend over and take it.

[JRS1386]

So how can I view my tax return from Turbo Tax to compare it line by line to last years (I have a PDF of last years return)

Edit: One thing I did notice is last year I was in the 15% tax bracket, so I jumped up a bracket. Stupid money

[Climb2safety]

Originally Posted by JRS1386

So how can I view my tax return from Turbo Tax to compare it line by line to last years (I have a PDF of last years return)

Edit: One thing I did notice is last year I was in the 15% tax bracket, so I jumped up a bracket. Stupid money

On TaxAct there is a step during the review process that says compare return to last year or something like that. Either way, look near the final steps for something like this.

[YouNeverKnow25]

Originally Posted by JRS1386

Edit: One thing I did notice is last year I was in the 15% tax bracket, so I jumped up a bracket. Stupid money

only the money that got you to the higher bracket is taxed at the higher rate

[Nick@Night]

Be nice if they'd adjust the income level at which 25% kicks in. Maybe something like $50k instead of $37,650 (single filer status). You're not making a ton of money to get hammered that hard in return.

[Tiduwho]

Originally Posted by Nick@Night

Be nice if they'd adjust the income level at which 25% kicks in. Maybe something like $50k instead of $37,650 (single filer status). You're not making a ton of money to get hammered that hard in return.

Come on now, we can't go helping the middle class. It's only worth helping the welfare class or 1%. The middle class should be happy with the pandering, no tangible benefits needed.

And plus, it's easy to deflect a question like yours by changing the subject to "Well actually after deductions the standard American making 50k only pays a 15% effective rate, so you aren't even paying that 25% in all likelihood. The 25% already kicks in at a higher level".

Which is not the same thing, and is a red herring meant to distract and quiet people down into thinking "hey life isn't so bad, stop complaining".

[thebridge15]

Originally Posted by YouNeverKnow25

only the money that got you to the higher bracket is taxed at the higher rate

do people still not know this?

[Tiduwho]

The key is to always keep the subject on taxable income. Not on salary. Don't let the subject be changed to salary or pre-tax income, where it can be ridiculed with deduction comments and twisted into alternative facts...

[Nick@Night]

Originally Posted by Tiduwho

The key is to always keep the subject on taxable income. Not on salary. Don't let the subject be changed to salary or pre-tax income, where it can be ridiculed with deduction comments and twisted into alternative facts...

If I ever get to the point a girl I am dating asks how much I make, I'm giving them taxable income from now on.

"I make $xx,xxx. Hey, where you going?!"

[daveshookme]

Originally Posted by daveshookme

Filed today. Getting about 2k back. Cost about 70 to file. Whatever

Filed the 23rd, got my fed refund back today. No word on state refund yet.

[M. Steng]

Wife and I filed jointly for the first time this past weekend. Getting about $2500 back ($2000 fed, about $500 from CT).

Apparently you can still only deduct $2500 in student loan interest, even between a married couple? That's absolute bullshit. That was the only thing that had me fired up about filing jointly as opposed to filing single. Otherwise it was a fairly smooth process (and free, thank you TurboTax).

[YouNeverKnow25]

the phaseout is twice as high for married couples. six in one, half dozen in another.


understand the phaseout, but still hate it. people at those income levels tend to have higher student loan debt, so they should still get a deduction IMO.

[M. Steng]

Originally Posted by YouNeverKnow25

the phaseout is twice as high for married couples. six in one, half dozen in another.


understand the phaseout, but still hate it. people at those income levels tend to have higher student loan debt, so they should still get a deduction IMO.

What do you mean by "phaseout"? Admittedly my knowledge of the tax code is pretty basic, but I've never heard that term before.

And what you're saying makes total sense, the only reason we're in this tax bracket to begin with is because we both pursued higher education and incurred debt to get there, at least let us both take off the (comically low) $2500 per person.

[cry_minarets458]

I'm just hoping to get around $3,000 back. Should be able to do that. Will report back. Will be shell-shocked if I'm less than $2,000 back. Really counting on it this year.

[YouNeverKnow25]

you can only deduct any student loan interest if your MAGI is less than 160,000 for married filing jointly.

you can only deduct the full 2500 if your MAGI is more than 130,000 for married filing jointly

[YouNeverKnow25]

and as to the statement about the married/phaseout interplay

you can only deduct one person's student loan interest, which sucks. but at least when you are married, the phaseout numbers are higher (reduced >130 instead of >65, totally lost at >160 instead of >80)

however with two high earners, regrettably, there is no relief whastoever

[M. Steng]

Originally Posted by YouNeverKnow25

and as to the statement about the married/phaseout interplay

you can only deduct one person's student loan interest, which sucks. but at least when you are married, the phaseout numbers are higher (reduced >130 instead of >65, totally lost at >160 instead of >80)

however with two high earners, regrettably, there is no relief whastoever

Yeah, just did a quick Google search which explained everything. That's a very disappointing aspect of the tax code as it's currently written. I doubt it'll ever change (and by the time it does we'll probably be in the phase-out bracket anyways), but it's probably an issue a lot of people my age and in my situation are dealing with.