Ball Security Posted April 18, 2022 Share Posted April 18, 2022 Am I the only one who wasn’t aware about the changes to the W4 form? Evidently, instead of making deductions like the previous form, you are supposed to use a table and determine the amount that should be withheld. I had no idea and went from usually getting a fairly big refund to owing quite a bit. Made for an unpleasant Easter weekend. My jobs and situations change all the time. It is rare that I’ve had the opportunity to compare apples to apples from year to year. I was taken by surprise last year and since I started a new job in 2021 thought it’d be all good. I was laughably wrong. Link to comment Share on other sites More sharing options...
The Evil Genius Posted April 18, 2022 Share Posted April 18, 2022 Yeah the W4 changed a few years back because the Trump tax changes made it ineffective. Sorry that it caught up to you. Hope you don't fall into the zone of paying a penalty for not enough withholdings. Link to comment Share on other sites More sharing options...
Ball Security Posted April 18, 2022 Share Posted April 18, 2022 59 minutes ago, The Evil Genius said: Yeah the W4 changed a few years back because the Trump tax changes made it ineffective. Sorry that it caught up to you. Hope you don't fall into the zone of paying a penalty for not enough withholdings. Yeah, it’s possible we get penalized. We extended, but stroked a check for 6k today. However, we have a few things that weren’t calculated in that will reduce it by 1500-2k. I’m just annoyed that I didn’t know about the W4 changes from both my accountant and my HR department. Now I understand it better and should have it corrected for 2022. 1 Link to comment Share on other sites More sharing options...
The Evil Genius Posted April 18, 2022 Share Posted April 18, 2022 27 minutes ago, Ball Security said: Yeah, it’s possible we get penalized. We extended, but stroked a check for 6k today. However, we have a few things that weren’t calculated in that will reduce it by 1500-2k. I’m just annoyed that I didn’t know about the W4 changes from both my accountant and my HR department. Now I understand it better and should have it corrected for 2022. I get why they do it, but I find penalties for simple withholding mistakes to be onerous. I also think the $ threshold for the penalties needs to be higher. We probably also should not be penalizing people who make less than a $ amount each year for that as well. 3 Link to comment Share on other sites More sharing options...
China Posted August 24, 2022 Share Posted August 24, 2022 Despite Texas' lack of a state income tax, most Texans pay more in taxes than Californians, data shows Those coming to Texas for a tax break may want to turn around if they are not in the top 1 percent of earners. A recent post on Reddit's main economic forum included a 2018 graphic that shows Texans pay more taxes than Californians unless they are in the top 1 percent. The post is one of the highest-rated in the last month on the social media platform. It is unclear why the post was shared now. Click on the link for the full article 1 Link to comment Share on other sites More sharing options...
Ball Security Posted August 24, 2022 Share Posted August 24, 2022 9 minutes ago, China said: Despite Texas' lack of a state income tax, most Texans pay more in taxes than Californians, data shows Those coming to Texas for a tax break may want to turn around if they are not in the top 1 percent of earners. A recent post on Reddit's main economic forum included a 2018 graphic that shows Texans pay more taxes than Californians unless they are in the top 1 percent. The post is one of the highest-rated in the last month on the social media platform. It is unclear why the post was shared now. Click on the link for the full article There’s a guy on YouTube (can’t remember his name) broke this down really well. It is true that those who have a median income or less and own an average valued home pay way more in taxes in TX than CA. There is a point on the income ladder where that changes and CA residents pay more, but it’s more than the median income. 1 Link to comment Share on other sites More sharing options...
China Posted October 15, 2022 Share Posted October 15, 2022 IRS warning millions of low earners they're missing out on Covid-era payments Millions of low-income Americans appear not to have realized they can get potentially massive payments this year from the IRS thanks to a bevy of temporary tax provisions Congress approved in the wake of the coronavirus pandemic. The agency said Thursday that it intends to send letters to nine million people and families who appear to qualify for all or part of the breaks but didn’t claim them. The department is reminding them they don’t necessarily have to have earnings to take advantage and that it’s okay that they missed the April filing deadline, but that they need to file a return in order to benefit. “We don’t want people to overlook these tax credits, and the letters will remind people of their potential eligibility and steps they can take,” said IRS Commissioner Charles Rettig in a statement. People can potentially get five-figure payments if they haven’t claimed last year’s expanded child credit, worth as much as $3,600 per child; stimulus payments of $1,400 per person; an expanded child and dependent care credit of up to $8,000; as well as a boosted Earned Income Tax Credit. Click on the link for the full article Link to comment Share on other sites More sharing options...
China Posted October 19, 2022 Share Posted October 19, 2022 Inflation Adjustments Mean Lower Tax Rates for Some in 2023 The rapidly rising cost of food, energy and other daily staples could allow many Americans to reduce their tax bills next year, the I.R.S. confirmed on Tuesday. Tax rates are adjusted for inflation, which in typical times means incremental movements in the thresholds for what income is taxed at what rate. But after a year that brought America’s fastest price growth in four decades, the shift in rates is far more notable: an increase of about 7 percent. Other parts of the tax code will also be affected by the inflation adjustment. Those include the standard deduction Americans can claim on their tax returns. The shift would be slightly larger if not for a change Republicans made as part of President Donald J. Trump’s tax overhaul that was passed in 2017. It tied rates to a measure of inflation, called the chained Consumer Price Index, that typically rises more slowly than the standard Consumer Price Index. In September, chained C.P.I. was up about a quarter of a percentage point less, compared with the previous year, than standard C.P.I. In dollar figures, the shift will be largest at the highest end of the income spectrum, although all seven income brackets will adjust for inflation. The top income tax rate of 37 percent will apply next year to individuals earning $578,125 — or $693,750 for married couples who file joint returns. That is up from $539,900 for individuals this year. The difference: Nearly $40,000 worth of individual income is eligible to be taxed next year at a lower rate of 35 percent. Click on the link for the full article 1 Link to comment Share on other sites More sharing options...
China Posted November 1, 2022 Share Posted November 1, 2022 IRS finds number of unpaid taxes rises, fueling growth of 'tax gap' he gap between the amount of taxes paid and what was owed by existing tax law increased by over $58 billion, according to the Internal Revenue Service. The IRS released its new estimates on the “tax gap” on Friday, which found the difference grew to $496 billion from tax years 2014-2016, up from $438 billion in the previous three-year estimate. "These findings underscore the importance of ensuring fairness in our nation's tax system," IRS commissioner Chuck Rettig said in a statement. "The increase in the tax gap estimates reflects that the IRS needs to do more, both in improving taxpayer service as well as working to improve tax compliance.” Click on the link for the full article This is why the IRS recently needed to increase its staffing. They are understaffed and actually have boxes of backlogged files filling up cafeteria spaces. Link to comment Share on other sites More sharing options...
China Posted November 23, 2022 Share Posted November 23, 2022 Tax filing websites have been sending users’ financial information to Facebook Major tax filing services such as H&R Block, TaxAct, and TaxSlayer have been quietly transmitting sensitive financial information to Facebook when Americans file their taxes online, The Markup has learned. The data, sent through widely used code called the Meta Pixel, includes not only information like names and email addresses but often even more detailed information, including data on users’ income, filing status, refund amounts, and dependents’ college scholarship amounts. The information sent to Facebook can be used by the company to power its advertising algorithms and is gathered regardless of whether the person using the tax filing service has an account on Facebook or other platforms operated by its owner Meta. Each year, the Internal Revenue Service processes about 150 million individual returns filed electronically, and some of the most widely used e-filing services employ the pixel, The Markup found. When users sign up to file their taxes with the popular service TaxAct, for example, they’re asked to provide personal information to calculate their returns, including how much money they make and their investments. A pixel on TaxAct’s website then sent some of that data to Facebook, including users’ filing status, their adjusted gross income, and the amount of their refund, according to a review by The Markup. Income was rounded to the nearest thousand and refunds to the nearest hundred. The pixel also sent the names of dependents in an obfuscated — but generally reversible — format. TaxAct, which says it has about 3 million “consumer and professional users” also uses Google’s analytics tool on its website, and The Markup found similar financial data, but not names, being sent to Google through its tool. TaxAct wasn’t the only tax filing service using the Meta Pixel. Tax preparation giant H&R Block, which also offers an online filing option that attracts millions of customers per year, embedded a pixel on its site that gathered information on filers’ health savings account usage and dependents’ college tuition grants and expenses. TaxSlayer, another widely used filing service, sent personal information to Facebook as part of the social media company’s “advanced matching” system, which gathers information on web visitors in an attempt to link them to Facebook accounts. Click on the link for the full article 2 Link to comment Share on other sites More sharing options...
Larry Posted November 23, 2022 Share Posted November 23, 2022 Really think we need major privacy legislation in this country. 1 Link to comment Share on other sites More sharing options...
LadySkinsFan Posted November 23, 2022 Author Share Posted November 23, 2022 My taxes are pretty simple. I download the forms and file a paper return. Link to comment Share on other sites More sharing options...
The Evil Genius Posted November 23, 2022 Share Posted November 23, 2022 8 hours ago, Larry said: Really think we need major privacy legislation in this country. And perhaps the IRS could just offer free online filing for everyone, including those who need the more complicated forms. 1 Link to comment Share on other sites More sharing options...
Larry Posted November 23, 2022 Share Posted November 23, 2022 What, and undercut all the companies who generate profit from standing in between the IRS and you? (And also, part of me thinks of the Obamacare rollout.) 1 Link to comment Share on other sites More sharing options...
China Posted December 22, 2022 Share Posted December 22, 2022 Hagerty, Manchin propose $10,000 threshold for Venmo, PayPal tax reporting change — up from $600 Sen. Bill Hagerty, R-Tenn., will file an amendment to the $1.7 trillion spending package, to increase the threshold for Form 1099-K, according to Sen. Joe Manchin, D-W.Va., the proposal’s lead co-sponsor. The tax reporting threshold applies to transfers using third-party payment networks including Venmo and PayPal . In an exclusive interview with CNBC, Manchin said the amendment would increase the payment threshold to $10,000 from $600 for the 2022 tax season. Before 2022, taxpayers received 1099-Ks with more than 200 transactions worth an aggregate above $20,000. But the American Rescue Plan Act of 2021 dropped the threshold to just $600. Currently, even a single transaction of more than $600 may trigger the form. “This is the best relief we can get for people,” said Manchin, referencing the $10,000 threshold as “the best way to approach it.” He believes that raising the threshold to $10,000 has broader support than delaying implementation of the new rule. Click on the link for the full article 1 Link to comment Share on other sites More sharing options...
China Posted January 14, 2023 Share Posted January 14, 2023 Federal Government: Tax Receipts on Corporate Income/National income: Corporate profits before tax (without IVA and CCAdj) 1 Link to comment Share on other sites More sharing options...
China Posted January 14, 2023 Share Posted January 14, 2023 34% of America’s Wealthiest Corporations Paid Zero In Income Taxes, Thanks to Trump A newly released Government Accountability Office (GAO) office has revealed that 34% of large, profitable corporations paid nothing in federal income taxes in 2018, the same year that large tax cuts, passed by former President Donald Trump, went into effect. The GAO report found that in 2017, the average tax rate for companies was 14.6 percent. In 2018, it dropped to 8.9 percent. A similar GAO report in 2016 found that 20% of corporations paid zero in federal income taxes. Comparatively, the average American tax rate is about 14.8%, according to the data site Statista. While the recent GAO report doesn’t name the companies that paid zero in taxes, a 2022 report from the Center for American Progress found that the telecommunications company AT&T made $29.6 billion in 2021, but paid zero in federal income taxes that same year. Instead, AT&T received a $1.2 billion IRS refund, Common Dreams reported. Click on the link for the full article See the chart linked in my prior post 2 Link to comment Share on other sites More sharing options...
China Posted January 19, 2023 Share Posted January 19, 2023 Republicans worry a national sales tax bill would be a ‘political gift’ for Democrats As part of his deal to become House speaker, Kevin McCarthy reportedly promised his party’s conservative hardliners a vote on legislation that would scrap the entire American tax code and replace it with a jumbo-sized national sales tax. The assurance got relatively little attention at the time, drowned out by the many other concessions McCarthy made to win his gavel. But with Democrats already attacking the proposal, some conservatives see it as a political headache in the making. “This is a political gift to Biden and the Democrats,” Grover Norquist, the dean of D.C. anti-tax activists, said in an interview. “I think that this is the first significant problem created for the Republican Party by the 20 people who thought that there was no downside to the approach they took.” The idea of a “fair tax” that would replace our current IRS code with a single sales tax was popularized on conservative talk radio in the late 1990s. It has kicked around Washington ever since, popping up in the occasional presidential platform, but never received a vote. Its current champion in Congress is Georgia Rep. Earl “Buddy” Carter, whose Fair Tax Act would swap out the income, payroll, estate, and corporate levies for a 30% national sales tax. It would also send out “prebate” checks to soften the blow on lower income families, all while abolishing the Internal Revenue Service. Click on the link for the full article Link to comment Share on other sites More sharing options...
China Posted January 25, 2023 Share Posted January 25, 2023 California lawmakers introduce new ‘wealth tax’ for ultra-rich residents California lawmakers have introduced new tax legislation for the state’s wealthiest residents. Spearheaded by Assemblyman Alex Lee, a progressive Democrat representing the state’s 24th district in Northern California, the new legislation would tax an extra 1.5% on residents with a global net worth of $1 billion and include a 1% tax for those making $50 million or more, a news release said. The proposal aims to tax one’s stocks and bonds, which can accrue additional wealth without being taxed, KCRA reported. The projected revenue from the new wealth tax would generate $21.6 billion annually, roughly the same amount as the governor’s latest budget deficit, Lee said on Twitter. “With this modest tax on the ultra-wealthy who pay a lower effective tax rate than the bottom 99%, we would have sustained investments in our schools, tackle homelessness, maintain and expand needed services, and much more,” Lee said in a statement. The measure has yet to be assigned to any committee or slated to receive a hearing, Sacramento TV station KCRA reported. The proposed legislation would require a two-thirds majority vote from the state legislature, and voters would ultimately decide its fate during the 2024 election. Click on the link for the full article 1 Link to comment Share on other sites More sharing options...
China Posted February 8, 2023 Share Posted February 8, 2023 IRS urges millions of taxpayers to delay filing; Californians impacted The Internal Revenue Service is telling millions of taxpayers who received special state tax refunds or payments to delay filing their 2022 taxes. “There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex,” the IRS said in a statement. “We expect to provide additional clarity for as many states and taxpayers as possible next week.” The IRS said it is “aware of questions” surrounding the relief efforts that were crafted by states in different ways and under different rules. In California, for instance, residents who met the income, filing status and dependent requirements received checks ranging from $200 to $1,050 as part of the Middle Class Tax Refund (MCTR). A spokesperson for the Franchise Tax Board (FTB) told Nexstar that as far as California state taxes are concerned, the MCTR is not taxable income, but noted that it “may be considered federal income,” leaving taxpayers in limbo and without official guidance from the IRS. According to the FTB, the refunds have benefitted more than 31 million California taxpayers and their dependents. The IRS now says they are still evaluating whether the tax refunds like California’s Middle Class Tax Refunds are taxable for Federal income tax purposes. Click on the link for the full article Link to comment Share on other sites More sharing options...
Fergasun Posted February 8, 2023 Share Posted February 8, 2023 I treated it as income. IRS already gave me my refund. I am fairly certain they must owe me more money than I have requested. Although CA is more generous due to allowed deductions... so CA gives me more money vs. Fed. Link to comment Share on other sites More sharing options...
tshile Posted February 9, 2023 Share Posted February 9, 2023 Whoops. Screwed up my w4 when switching jobs. And I’m guessing I’ll have to pay a penalty for that. super not thrilled. Link to comment Share on other sites More sharing options...
HOF44 Posted February 9, 2023 Share Posted February 9, 2023 (edited) 50 minutes ago, tshile said: Whoops. Screwed up my w4 when switching jobs. And I’m guessing I’ll have to pay a penalty for that. super not thrilled. Happened to me last year. Luckily only a $54 dollar penalty. The taxes like $4000 Edited February 9, 2023 by HOF44 1 Link to comment Share on other sites More sharing options...
TheGreatBuzz Posted February 9, 2023 Share Posted February 9, 2023 We've had so much change in the last year, I'm just going to pay someone to do my taxes. 😞 Link to comment Share on other sites More sharing options...
Corcaigh Posted February 9, 2023 Share Posted February 9, 2023 54 minutes ago, TheGreatBuzz said: We've had so much change in the last year, I'm just going to pay someone to do my taxes. 😞 I always manage to have something complicated in our returns and I hate reading these kinds of rules, so paying someone to deal with it is one of my few indulgences. 🙂 Link to comment Share on other sites More sharing options...
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