Proposed wealth taxes should be fun.

quote:

Originally posted by Beancooker:
Yes, you will owe tax for the income that had no withholding. The additional fee for not “paying as you go” seems to be hit or miss. I owed a little one year and they penalized me. I owed far more a different year, and no penalty. It appears I’ll owe again this year as I had it dialed in pretty well, then we both started making more and the amount withheld isn’t enough to cover what the tax man wants.

Penalty for underwithholding, per IRS. No penalty if you withheld 90% of what your eventual tax is for that year. No penalty if you withheld 100% of the tax you paid in the prior year. That second one can get you a penalty-free year if you had a low (or no) tax the prior year.

My CPA says the word we have to look out for in the next few weeks is "retroactive". They've done it before.

I remember the Retroactive tax increase in 1993. Bill passed in March but retroactive to beginning of year. Totally screwed up withholding and personal tax burden.

I am more worried about taxing unrealized gains in the market. People who have been investing all of their lives could have their savings destroyed by that tax. Right now one pays capital gains tax on the difference between what you paid for the stock and the price you received when sold. Think Microsoft and Apple bought when they started!

tleddy,

I believe the Biden tax discussions on unrealized capital gains were upon death/estate settlement.

^^^^^^^^^^^
Correct but it still sucks.

quote:

Originally posted by tleddy:
I remember the Retroactive tax increase in 1993. Bill passed in March but retroactive to beginning of year. Totally screwed up withholding and personal tax burden.

1993. Hmmm. Who was it that had just been inaugerated?

quote:

Originally posted by wcb6092:
Unemployment benefits and social security used to be tax free.

President Reagan signed a law taxing unemployment, along with social security benefits. One of the few things he did that I disagreed with.

He also signed the Hughes Amendment into Law even though crimes with full auto machine guns was virtually non-existent.
He also kick started the outsourcing of jobs to China. Not a fan but I digress.

I'm sure a lot of folks are going to be in for a small surprise this year when those 2020 tax deferments come due.

If I'm not mistaken, we've just "printed" $4T these last few months. We're all about to get screwed. No question about that.

quote:

Originally posted by r0gue:
If I'm not mistaken, we've just "printed" $4T these last few months. We're all about to get screwed. No question about that.

As noted a couple times earlier and why I specifically mentioned our personal return in the thread title.

That is a whole other topic for a whole other thread.

quote:

Originally posted by ZSMICHAEL:
^^^^^^^^^^^
Correct but it still sucks.

Duly noted. Sucks big time.

Black92LX,

Your wife didn't have a paycheck stub saying what was withheld? I do a fair amount of afterhours consulting and I know I owe SS, State, and Fed taxes. I found that out the hard way a few years back. I hope your family doesn't get hit very hard.

quote:

Originally posted by Bytes:
Black92LX,

Your wife didn't have a paycheck stub saying what was withheld? I do a fair amount of afterhours consulting and I know I owe SS, State, and Fed taxes. I found that out the hard way a few years back. I hope your family doesn't get hit very hard.

I think the issue is that t Black's state doesn't withhold from the unemployment checks it sends. He's just going to get an unexpected tax bill because he either didn't know that unemployment payments are still considered taxable, or he didn't know that the state wouldn't withold.

Someone hands me a $1000 check and my first thought is always, "How much of this is going to have to go to taxes?"

If more people had that visceral response, maybe we wouldn't have so many taxes.

quote:

Originally posted by Aeteocles:

quote:

Originally posted by Bytes:
Black92LX,

Your wife didn't have a paycheck stub saying what was withheld? I do a fair amount of afterhours consulting and I know I owe SS, State, and Fed taxes. I found that out the hard way a few years back. I hope your family doesn't get hit very hard.

I think the issue is that t Black's state doesn't withhold from the unemployment checks it sends. He's just going to get an unexpected tax bill because he either didn't know that unemployment payments are still considered taxable, or he didn't know that the state wouldn't withold.

Ahhhh, got it. Sometimes I can be a bit thick. Still wishing the best for Black92LX

quote:

Originally posted by Aeteocles:

quote:

Originally posted by Bytes:
Black92LX,

Your wife didn't have a paycheck stub saying what was withheld? I do a fair amount of afterhours consulting and I know I owe SS, State, and Fed taxes. I found that out the hard way a few years back. I hope your family doesn't get hit very hard.

I think the issue is that t Black's state doesn't withhold from the unemployment checks it sends. He's just going to get an unexpected tax bill because he either didn't know that unemployment payments are still considered taxable, or he didn't know that the state wouldn't withold.

Yes, I erroneously presumed they would with hold taxes (if required) just as they did in a standard paycheck because her employer did all the paperwork and I would have presumed with holdings and exemptions filed for the regular employment would carry over.
Not a huge deal as it looks like we will not have to pay the penalty as we prepaid 100% of our taxes last year.
I was going to buy some sliders for my truck but guess we will wait and see how steep the added bill is.

I got laid off in mid-1990 for several months. I missed the notice that there was no withholding done from unemployment payments, and got raped on my taxes in `91.

Seems last year's tax filing was delayed. We had paid quarterly and our accountant took full advantage of the extensions. Yesterday I got a notice that we were paid a small interest: Be sure to include the interest in next year's income! Kinda like 1099 from the IRS At least the interest was much more than I got on a 100K CD!

This must be part 2 of Obama’s Moolah for the Mullahs program.

quote:

Originally posted by Sportshooter:
This must be part 2 of Obama’s Moolah for the Mullahs program.

Right.

Because because tax witholdings from an unemployment benefit is totally a jumping off point for a snarky political comment.

I cannot fathom how shitty life would be to be so continually angry with the world that political commentary needs to be the first thing that jumps off the tip of my tongue in every discussion.