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PSA - Check your withholdings/estimated tax for 2019 Login/Join 
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Picture of Sailor1911
posted
IRS Urges Paycheck Checkup: The IRS has launched a special campaign encouraging taxpayers to perform a "paycheck checkup" to ensure the right amount of tax is being withheld from their paychecks for 2019. This is particularly important given changes implemented by the Tax Cuts and Jobs Act (TCJA). For 2018, some taxpayers received refunds that were larger or smaller than anticipated, and some unexpectedly owed additional tax. To help taxpayers avoid this for 2019, the IRS urges everyone to use the "Withholding Calculator" available at www.irs.gov . Taxpayers will need their completed 2018 tax return and most recent paystubs. Results from the calculator can be used to complete and submit a new Form W-4. News Release IR 2019-107.

A good time to do this is after the last June payroll - half year of income and withholdings - makes the math easy.




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“If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016
 
Posts: 2976 | Location: Wichita, Kansas | Registered: March 27, 2011Reply With QuoteReport This Post
Go ahead punk, make my day
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Fuck it, I like writing them a check at the end of the year.
 
Posts: 43051 | Registered: July 12, 2008Reply With QuoteReport This Post
Ammoholic
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quote:
Originally posted by RHINOWSO:
Fuck it, I like writing them a check at the end of the year.

Beats the snot out of giving a spendthrift uncle an interest free loan.

ETA: As long as I don’t have to pay 2210 (underpayment of estimates), the larger the check, the more of my earnings I’ve been able to use over the year.
 
Posts: 4167 | Registered: February 23, 2011Reply With QuoteReport This Post
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Yeah, last year for the first time in 21 years of marriage we went from getting 2-4k back from the fed to owing 3k. I cut back my withholdings but probably will still owe 1k in 2020 (but get that back from State so more or less a wash).
 
Posts: 2706 | Location: Alexandria, VA | Registered: March 07, 2011Reply With QuoteReport This Post
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Picture of Rick Lee
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I'm 1099 this year and would love to just write them a big check for the whole year next April. But it doesn't work that way. I hate giving the gov't. a free loan, but I also hate paying a fine for underpaying throughout the year.
 
Posts: 1662 | Location: Cave Creek, AZ | Registered: October 24, 2005Reply With QuoteReport This Post
Shit don't
mean shit
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quote:
Originally posted by slosig:
Beats the snot out of giving a spendthrift uncle an interest free loan.

ETA: As long as I don’t have to pay 2210 (underpayment of estimates), the larger the check, the more of my earnings I’ve been able to use over the year.


Everyone likes to quote the "interest free loan", but how much are you actually losing in interest on a risk free asset, i.e. savings account, T-Bill, etc...? Probably a few dollars. BFD.
 
Posts: 4727 | Location: 7400 feet in Conifer CO | Registered: November 14, 2006Reply With QuoteReport This Post
Go ahead punk, make my day
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quote:
Originally posted by Rick Lee:
I'm 1099 this year and would love to just write them a big check for the whole year next April. But it doesn't work that way. I hate giving the gov't. a free loan, but I also hate paying a fine for underpaying throughout the year.
Quarterly payments as a 1099 are rules of the game, which is different than .Gov wanting more money from the employee citizens.
 
Posts: 43051 | Registered: July 12, 2008Reply With QuoteReport This Post
Go ahead punk, make my day
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quote:
Originally posted by 1967Goat:
quote:
Originally posted by slosig:
Beats the snot out of giving a spendthrift uncle an interest free loan.

ETA: As long as I don’t have to pay 2210 (underpayment of estimates), the larger the check, the more of my earnings I’ve been able to use over the year.


Everyone likes to quote the "interest free loan", but how much are you actually losing in interest on a risk free asset, i.e. savings account, T-Bill, etc...? Probably a few dollars. BFD.
If you like rendering under Cesar, go ahead.

Nobody is putting that money into a bank account and comparing the interest. But if you put $XYZ tax savings into a real investment over time every month instead of giving it to Uncle Sam, it will out perform getting it once a year and investing it then.

It comes down to financial responsibility. Most Americans are too fucking stoopid, irrational, or irresponsible to save money - so they like their 'refund' at the end of the year. But most of those people likely blow that money anyway, so it's two different types of people.

I don't think of a savings account as an investment, it's were you temporarily park money that you need sooner rather than later and don't want to put into a real investment opportunity. 2-4% interest? Fuck, I'll keep the cash money on hand instead.
 
Posts: 43051 | Registered: July 12, 2008Reply With QuoteReport This Post
Shit don't
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That's not a valid comparison. You only "lose" the opportunity to invest the money from the first of the year (at the earliest) until you get the refund. You're also not losing much time as you progress into the latter parts of the year, i.e. Oct, Nov, Dec. Having the .gov holding on to your money is the "risk free investment". Look at last year. The market dropped significantly at the end of the year, only to rebound after Jan 1.
 
Posts: 4727 | Location: 7400 feet in Conifer CO | Registered: November 14, 2006Reply With QuoteReport This Post
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Picture of cooger
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quote:
Originally posted by RHINOWSO:
quote:
Originally posted by 1967Goat:
quote:
Originally posted by slosig:
Beats the snot out of giving a spendthrift uncle an interest free loan.

ETA: As long as I don’t have to pay 2210 (underpayment of estimates), the larger the check, the more of my earnings I’ve been able to use over the year.


Everyone likes to quote the "interest free loan", but how much are you actually losing in interest on a risk free asset, i.e. savings account, T-Bill, etc...? Probably a few dollars. BFD.
If you like rendering under Cesar, go ahead.

Nobody is putting that money into a bank account and comparing the interest. But if you put $XYZ tax savings into a real investment over time every month instead of giving it to Uncle Sam, it will out perform getting it once a year and investing it then.

It comes down to financial responsibility. Most Americans are too fucking stoopid, irrational, or irresponsible to save money - so they like their 'refund' at the end of the year. But most of those people likely blow that money anyway, so it's two different types of people.

I don't think of a savings account as an investment, it's were you temporarily park money that you need sooner rather than later and don't want to put into a real investment opportunity. 2-4% interest? Fuck, I'll keep the cash money on hand instead.


I guess I’m one of the top stoopid, irrational, or irresponsible ones that likes getting a refund. My wife and I purposefully have more taxes taken out than we should. We’ve learned to live on less money each month and that refund goes to paying down debt and into savings. For us it’s a good situation that has worked well. I hear people say they’d rather lose an arm than get a tax refund but I don’t get it.
 
Posts: 1246 | Location: Kentucky | Registered: December 05, 2011Reply With QuoteReport This Post
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Picture of doublesharp
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Thanks for the reminder. Paid my fed and state estimated tax online a few minutes ago.



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Posts: 3128 | Location: Sunnyside of Louisville | Registered: July 04, 2007Reply With QuoteReport This Post
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quote:
I guess I’m one of the top stoopid, irrational, or irresponsible ones that likes getting a refund. My wife and I purposefully have more taxes taken out than we should. We’ve learned to live on less money each month and that refund goes to paying down debt and into savings. For us it’s a good situation that has worked well. I hear people say they’d rather lose an arm than get a tax refund but I don’t get it.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
As you stated it is a personal choice and it works for you. Some people buy municipal bonds just because they are tax exempt. Most of the time there are better investments. Investment has as much to do with personality than anything else.
 
Posts: 6233 | Location: MS GULF COAST | Registered: January 02, 2015Reply With QuoteReport This Post
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We balance our paycheck to live within, but a bit chunk of money owed at tax time is outside the balance, so we ensure that if anything, we get money back or break even. Being neither financial whiz nor math genius, it's just easier.
 
Posts: 3916 | Registered: September 13, 2006Reply With QuoteReport This Post
Do No Harm,
Do Know Harm
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I don’t trust the government to give me my money back in a reasonable time.

Every year I read about people who file only to find someone has already fraudulently filed under their name. Many months later they are still trying to get their refund.

Some states have issued IOUs, if I remember correctly.


No thanks.




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Although sometimes distracting, there is often a certain entertainment value to this easy standard.
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Posts: 10471 | Location: NC | Registered: August 16, 2005Reply With QuoteReport This Post
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quote:
Originally posted by chongosuerte:
I don’t trust the government to give me my money back in a reasonable time.

Every year I read about people who file only to find someone has already fraudulently filed under their name. Many months later they are still trying to get their refund.

Some states have issued IOUs, if I remember correctly.


No thanks.


This. Becoming more and more frequent - and I would bet my next paycheck that the IRS is far more interested and motivated in rectifying this type of fraud when you OWE them money.
 
Posts: 2445 | Registered: April 20, 2010Reply With QuoteReport This Post
Leatherneck
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Thanks for the link. I’m going to try and use it this weekend.

I’m afraid of this next tax season. This year so far I’ve sold a house, got a divorce, moved to a different state and started a new job. My next returns are going to suck to put together.




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Posts: 13258 | Location: Florida | Registered: May 07, 2008Reply With QuoteReport This Post
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Picture of vthoky
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quote:
Originally posted by RHINOWSO:
I don't think of a savings account as an investment, it's were you temporarily park money that you need sooner rather than later and don't want to put into a real investment opportunity. 2-4% interest? Fuck, I'll keep the cash money on hand instead.



Pfft!! Who the heck is getting 2-4% interest on a bank savings account??



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Posts: 9163 | Location: Hokie Nation! | Registered: July 15, 2007Reply With QuoteReport This Post
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Picture of coloradohunter44
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With the flying gig and my retirement from the FAA, I do quarterly payments. Last year somehow, for the first time in over 30 years of him doing taxes, my end result was ZERO, to the penny. I didn’t owe, they didn’t owe me. He said he’s never seen that happen ever. I was thrilled I didn’t have to write a check.



"Someday I hope to be half the man my bird-dog thinks I am."


 
Posts: 9365 | Location: Colorado  | Registered: July 23, 2009Reply With QuoteReport This Post
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quote:
Originally posted by chongosuerte:
I don’t trust the government to give me my money back in a reasonable time.

Every year I read about people who file only to find someone has already fraudulently filed under their name. Many months later they are still trying to get their refund.



Here is something else to consider:

https://www.moneycrashers.com/...x-refund-money-debt/

So there are several reasons why the IRS can seize your refund, including federal or state tax delinquencies, delinquent child support and other reasons.

So a state agency can notify the IRS that you have delinquent taxes or child support. The IRS is required to send your refund to the state agency. When you call the IRS, they tell you to deal with the state agency. Good luck with that.... Even if you don't owe any taxes or child support, you will have to satisfy the state agency of that before you see your refund.

Incorrect refund seizure is not a rare or unusual event.

It is much easier to write a check at year end.


----------------------------------------------------
Dances with Crabgrass
 
Posts: 1736 | Location: Eastern Virginia | Registered: October 12, 2009Reply With QuoteReport This Post
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