Federal Taxes

[Ronson]

For those of you out there that are in the workforce, are you having issues with the IRS about how much federal taxes you owe? Or have been withheld recently? Something funky seems to be going on.

[Sparko]

For those of you out there that are in the workforce, are you having issues with the IRS about how much federal taxes you owe? Or have been withheld recently? Something funky seems to be going on.

like what? I haven't started my taxes yet.

[Ronson]

like what? I haven't started my taxes yet.

Two friends, my wife, my brother (retired) and my brother-in-law did not have enough federal taxes deducted from their paychecks this year. This happened to me last year. In the case of my brother-in-law, he swears that everything should be absolutely the same from year to year because nothing has changed in his household, yet the deduction changed and his payroll department gave him doubletalk when he inquired.

I'm not typically a conspiracy-minded person, but this is an awful lot of coincidence. It makes me wonder if there is some sort of kickback scheme going on. I just can't figure the angle.

[Sparko]

I will probably be doing mine in a week or so and will let you know.

[Thoughtful Monk]

Two friends, my wife, my brother (retired) and my brother-in-law did not have enough federal taxes deducted from their paychecks this year. This happened to me last year. In the case of my brother-in-law, he swears that everything should be absolutely the same from year to year because nothing has changed in his household, yet the deduction changed and his payroll department gave him doubletalk when he inquired.

I'm not typically a conspiracy-minded person, but this is an awful lot of coincidence. It makes me wonder if there is some sort of kickback scheme going on. I just can't figure the angle.

I heard that inflation is making a difference. I think I remember it raised some levels when a deduction kicked in. Also, I think there was a change on charitable giving rules, I'm probably not going to be starting mine for a couple weeks yet so I'll be interested to see what others find.

[Mountain Man]

My tax filings for 2022 were almost identical to 2021.

[Cow Poke]

I never let them "take out taxes" from my income -- I do an estimate, and put that money in savings each month.

When they do payroll deductions, they're basically using your money totally interest-free, then applying it to your taxes due.
I'd far rather be earning interest on that money (currently 3.9%) and "pay in" at the end of the year, rather than get a "refund" of my own money.

[Mountain Man]

I never let them "take out taxes" from my income -- I do an estimate, and put that money in savings each month.

When they do payroll deductions, they're basically using your money totally interest-free, then applying it to your taxes due.
I'd far rather be earning interest on that money (currently 3.9%) and "pay in" at the end of the year, rather than get a "refund" of my own money.

I've long considered that, but I'm afraid that paying the total amount all at once will give me a heart attack.

[Cow Poke]

I've long considered that, but I'm afraid that paying the total amount all at once will give me a heart attack.

An EGGcellent point ---- if average citizens were required to pay quarterly - not from "withholdings", there would be FAR MORE uproar about the spending by "our government" like a whole navy of drunken sailors.

It is a bit stunning - however, I have the satisfaction of knowing that I've earned interest along the way - something the tax system will collect, but never pay.


Definition of "interest" - them what knows what it is collect it, them what don't understand it pays it.

[alaskazimm]

An EGGcellent point ---- if average citizens were required to pay quarterly - not from "withholdings", there would be FAR MORE uproar about the spending by "our government" like a whole navy of drunken sailors.

It is a bit stunning - however, I have the satisfaction of knowing that I've earned interest along the way - something the tax system will collect, but never pay.


Definition of "interest" - them what knows what it is collect it, them what don't understand it pays it.

Hey! I was in the Navy and . . . uh . . . your remark is not totally unright

[Cow Poke]

Hey! I was in the Navy and . . . uh . . . your remark is not totally unright

I purposely uncapitalized "navy".

[alaskazimm]

I purposely uncapitalized "navy".

[Cow Poke]

I purposely uncapitalized "navy".

I was obviously referring to Sparko and his buddies.

[Sparko]

CP I thought you were retired? And do they even tax your police pension?

[Cow Poke]

CP I thought you were retired? And do they even tax your police pension?

Nope - fully employed - not quite ready for retirement yet.

My biggest challenge is that, when I signed up for Social Security, I didn't have them do "withholding", but that's OK - I just put that money in savings every month and pay up in March.