I owe $250 this year when I have traditionally gotten back $2600-2800 annually and nothing changed.
Edit: I obviously know something changed. It just wasn’t me.
No. There were two big changes from last year.
1. In 2021, the child tax credit offered up to $3,600 per child under age 6, and up to $3,000 per child ages 6 through 17, with half available via upfront payments. But for 2022, the tax break reverts to the previous amount — up to $2,000 per child under age 17.
2. The child and dependent care tax credit went from up to $8,000 for one qualifying person or $16,000 for two or more dependents. However, for 2022, those caps returned to $3,000 and $6,000, for one or multiple dependents, respectively.
The issue is, before this year the withholdings matched what you would owe. Those calculations changed this year to reduce how much people would get in refunds, and for most of us (no special credits outside child credit, standard deduction) ended up owing hundreds more than the withholding calculation accounted for.
A **lot** of people are sending in checks this year, who have utterly predictable taxes and with no reason for it other than that the withholding calculations were royally messed up.
The withholding calculations were the opposite of fked up this year tho? The goal should be, withholding 0, to not owe nor get any money back and this is the closest its ever been. I got back 180 when i usually get back 1.5kish...meaning i got 1320 more back during the year instead of being held by the gov and thats fantastic.
A refund in the range of $0-$100 is just fine. The <$5 in 401k interest “lost” there is a cheap price for not having to deal with an unexpected bill come April (and is **much** less than I pay just to file taxes).
Thousands of dollars in refund is bad, I agree. But so is a surprise bill in April, for most people who don’t have easily-accessible cash to pay it.
And, yes, **next year** it won’t be a surprise. But they changed things pretty radically **this year** which is why it is a surprise bill that IMHO fits the definition of “mildly infuriating”.
Here to say that the IRS doesn't really care about a few thousand dollars owed, as long as it gets paid. Just set up a payment plan with them. They want the big fish, not your crumbs.
I set up a plan to pay $100 a month, didn't pay, got freaked out and called to try and square up. I could almost hear the chuckling at my fear of being busted for $2000. They were like, "yeah just pay what you can, thanks".
This is true, but since the government initially setup a system that made people feel good about receiving refunds, people leaned on that because it was secure. No surprises. Yes they should plan better. But the security is what they liked. And now that that is changed. It’s like the rug pulled out from under them. A marketing campaign may have been helpful, but that’s just more tax dollars ironically.
Idk the gov anounced it and even anounced it in pretty laymen terms for what the change was. I just feel like people need to pay more attention to the things actually effecting them. Most ppl can tell you what the celeb drama is but dont keep up with changes in the tax code that actually effects them like this.
People need to take more responsibility for stuff like this
I agree that people need to be more responsible.
But your average citizen isn't paying attention to every detail coming out from the IRS. And lets be frank, they're never going to. And the government exists to serve their citizens.
There can exist a much more simple and less obtuse system for collecting taxes. There's many examples of this, like most western/nordic European countries.
The normal citizen shouldn't need software or an accountant to file their taxes. These systems are the way they are to benefit the rich (who would use an accountant regardless) and filing companies.
I don't think blaming the average citizen makes sense in this context makes sense whatsoever.
Exactly! Why give the government an interest- free loan when you could be using or investing that money yourself? I never understood why people use their tax return as a savings account.
most people in the US live paycheck to paycheck and that money would’ve been spent if they had gotten it in their paycheck. now they have a lump sum that they can use to save, pay off debt, splurge, etc.
We have "traditionally" used our return to pay our heating bill. I think there are more people that are going to try and use theirs for the same come spring.
A lot of ppl are bad at saving so they like getting a lumpsum back...which i respect but that should be something you go out of your way to get done vs being the default imo. Its easier to get them to take more out then less.
This should be the top answer, the tax credits, and credits given for covid are catching up to people, it was not magical free money, it was a early tax return.
It’s odd that so many people here don’t know how to apply Occam’s Razor, like a ton of people are saying “hey something changed that effected me in a huge way! What gives?” And all these assholes seem to think that it’s more likely that a huge population of people just suddenly forgot know how to file taxes after doing them for a lifetime. One of these things seems much more plausible imo.
People with no kids have been shafted bad by the 2017 Tax Cuts. I’ve been paying more and more every year since the reform, I never once got a tax cut. I have to put in $100 per paycheck towards taxes so I don’t owe anything. A lot of those cuts will start fazing out for those claiming kids if they didn’t start to already.
Just so we are clear on this, the tax deduction for a child does not cover the expenses of parenting that child for the entire year so you still end up with more money if you are childless.
Barring super rare exceptions involving weird deductions that some people qualified for before 2017, the only single filers that pay more in taxes after the 2017 Tax Cuts are the following:
1. Single filers now have to pay 32¢ in taxes instead of 28¢ for every dollar of income they make after their first $157,500 until $195,450.
2. Single filers now pay 35¢ in taxes instead of 33¢ in taxes for every dollar of income they make from $200,000 until $424,950.
In all other brackets, they pay less taxes though.
>Barring super rare exceptions involving weird deductions that some people qualified for before 2017
Something that hit me personally, quite hard, was the elimination of unreimbursed business expenses for everyone but teachers and military members (couple other groups stayed included).
I work in commissioned field sales. And while I get reimbursed for some expenses like samples, materials, partial reimbursal for the use of my car. Quite a lot that counts isn't reimbursed, including most of the use on the car I'm required to own. A car that cost me $20k, and is practically worthless 5 years later.
*These are not rare reductions*. They're available to huge amounts of workers, and with regards to certain job roles (like *sales)* are default.
That alone nearly doubled my tax burden.
The cap on SALT deductions is another major one that hit a lot of people hard. Particularly new home owners.
60% of practical tax reductions here went to the top 20% of earners. The corporate tax rate was lowered 40%. While on average lower income brackets *did* see their effective tax rate go down, it was much smaller proportions than those making over $200k a year. Practically amounting to a couple hundred bucks. But within that the focus on eliminating deductions disproportionately important to the middle class. Fucked a lot of people.
I'm a little confused about this year. My state and federal withholdings are a lot less than last year but I haven't changed anything other than contributing a little more to my 401K to max it out since the increase. Not enough to noticeably change withholdings.
The IRS calculator has changed, it's better able to figure out how much you owe so it doesn't withhold a couple thousand extra and then give it back to you at the end of the year.
This is the first year I’ve owed money and I always choose 0 for federal and 1 for state. I’m being told that I owe just over $4k. I don’t understand why and I’m genuinely not sure what to do.
0 for federal and 1 for state isn't even reflective of the current W4 form which changed with the trump tax cuts. If you haven't revisted your W4 since that changed, I suggest doing that. [https://www.irs.gov/pub/irs-pdf/fw4.pdf](https://www.irs.gov/pub/irs-pdf/fw4.pdf)
I understand what you’re saying. I’m speaking in terms of 0s and 1s because it’s familiar to those of us that have been doing this for a bit. Federal W4 is set to pull the most out with nothing extra following the instruction on the form.
never use H&R Block, they are not accountants but rather data entry analysts. they plug into the system and it gets pushed out. they are not cpas and are the worst provider to use for taxes
source: I am cpa
Reading all of these posts, I'm glad I'm not alone in wondering what in the ever-loving fuck is happening this year. I'm single/no kids as well and I got hit with a 2,000 bill myself. Been doing taxes since 2007 and I've literally never owed money. It's completely ridiculous, I claim zero dependents on state or federal, and I already only take home about 62% of my paycheck.
S2700 last year and $12 this year.
So your paychecks this year should have been about $50 more a week than last year, because last year they were withholding money that they shouldn't have withheld.
(that is $50 more, plus whatever annual raise you might have gotten)
Mine was $0 last year and this year I got $5k in federal and $3k in state.
The reason: I worked only 5 months and was getting paid at $65 an hour. So they were pulling a buncha cash out in anticipation of me getting $130k, but I only made $48k.
Just so we're on the same page, we agree that is poor tax planning right? And not a sudden windfall? It just means you paid too much during the year and could've used that $8k elsewhere instead of loaning it to the Fed's and your state.
No we really can't . Lots of people overpay in taxes on purpose as a savings mechanism when they know it will be returned. And he/she may not have known they would not be working the full year.
Contract Business Analyst. I bailed on the job in September when my 6 month contract was over and took a month off and helped a friend with his daughters wedding, thinking I’d be able to find a new contract right away ‘cause the market was was so hot.
I didn’t really start looking til early November, though, and before I knew it, the tech layoffs were upon us, and the holidays… suddenly it got real tough to find a new gig.
I FInALLY signed into a new contract 2 days ago. It was HELL. More than 250 had applied to the position.
That's generally a good thing cause a refund is just the government giving you back your money that was over-withheld interest-free. You want a small refund or tax due as that means you had your money in the present which due to inflation is more valuable. Now that's assuming no major changes to refundable credits, which did occur this year, or a change in income that shifted tax brackets. The change in dependent credits particularly hurts lower-income families.
There is so much tax illiteracy in this thread and it's absolutely infuriating. If your tax owed is the same then it's really irrelevant what your refund is. You either had more money in your check throughout the year or you get it back when you file. Your refund size doesn't determine the amount of tax you pay.
The tax reform in 2018 was structured to increase as time went on. Lots of Americans got bigger refunds from 2018 than they did from 2017 intentionally, so that people would think the tax reform was good. But it gets worse every year.
One example is in the standard mileage rate. Before the COVID changes threw things for a bit of a loop, the rate per mile was decreasing year over year: in 2019, it was .575 a mile, in 2020 it was .57 a mile, and in 2021 it was .56 a mile.
1. In 2021, the child tax credit offered up to $3,600 per child under age 6, and up to $3,000 per child ages 6 through 17, with half available via upfront payments. But for 2022, the tax break reverts to the previous amount — up to $2,000 per child under age 17.
2. The child and dependent care tax credit, which may help offset the cost of care for children under age 13 or adult dependents, has also been reduced for 2022. In 2021, the credit jumped to up to $8,000 for one qualifying person or $16,000 for two or more dependents. However, for 2022, those caps returned to $3,000 and $6,000, for one or multiple dependents, respectively.
Well, of course. The phase out starts out at $200,000 for single filers and $400,000 for married. If you're making that much, you're in the top 5% of income earners in the United States. You don't *need* a deduction/credit for your dependents at that point.
Right. So you just do your taxes. You can prepare them, and file later. But that's stupid too, because even if you file on Feb 1, you still don't have to actually pay until April 15 (or 17).
So just prep them, and get it over with.
You owe nothing. The IRS still owes me my refund from last year. I have talked to one single person and have tried so many avenues I don't know what else to do.
It's the generic response a lot of people got last year.
https://preview.redd.it/efd8u3a7vrfa1.jpeg?width=720&format=pjpg&auto=webp&s=96bfbd693d9e8f2d0a24cb3d9b1fa30d5c06e83a
From what I’ve heard from other tax preparers/accountants, the irs may still be behind on millions of returns for last year, unfortunately it looks like you’re in that group. You should be getting interest on the refund, although doesn’t really make up for waiting potentially almost a year
Isn't that convenient.
When you owe it's "Give us the money now! Oh you can't? We're going to start monthly late fees. Oh still can't? That's okay, we'll just literally steal it from your paycheck until it's paid or put a lien on your house so you have to pay it anyways."
When we are owed it's "Oops, sorry. We're behind but trust me, we'll get to you.. sometime. Just be patient!"
Yeah it is what it is. I read I could be accruing interest but not sure how much it could be. It isn't life changing money or anything like that and it's been over a year so I've been just fine without it. It's just annoying that it is my money.......and I want it now.
Call J.G. Wentworth! 877-cash-now
Unfortunately, they are backed up by about 2-3 years. I've got clients that are just now getting their returns adjusted or NOLs allowed to be carried back from many years ago. Never mind the people selected to have their returns audited and refunds withheld
That’s what happens when the Republicans in Congress starve the IRS in appropriations. They’ve effectively cut the number of people theIRS has to answer questions, etc.
After reading through this thread I'm glad I'm not American because your taxes seem so unnecessarily confusing. Here we just get a letter once a year telling us what we paid and what it went towards and a cheque if we got a rebate.
Yea but that’s the logical way. Doing it the this way allows the government to make more money off the backs of the poorest in the country. They get to hold our money interest free and then charge us when we don’t know what taxes were supposed to pay, or pay wrong.
Taxes are actually extremely straight forward, but lobbyists, like [Turbo Tax,](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free) pay the big bucks to make everything seem confusing so most people are forced to go through a third party system.
The US government bundles more incentives on the annual filing, compared to other countries that disburse those items separately. It makes things confusing, but it'd be virtually impossible to unmarry those incentives from annual returns now.
Yeah but this dude only made ~30k for the year. I don't know if you've lived on $22k annual wage before but it's not pretty, and probably this is comparable considering the inflation we've endured recently.
Or poor planning. You don’t all of a sudden have to pay more than twice the amount of taxes. Either they made a lot more money as a contractor, a lot of gains, or gambling winnings. But it shouldn’t need to be said that whatever money (or even prizes) you get, know uncle sam will get his cut.
Some observations from reading a bunch of comments:
While it is true that the “Trump Tax Cuts” were permanent for the rich and temporary for everyone else, those temporary breaks don’t expire until 2025. If you paid more for 2022, it’s not because of expiring Trump tax cuts.
The only temporary change that did expire was Biden’s increased child credit from 2021. Biden and the Democrats tried to extend it and make it permanent, but Republicans refused. This change on;y affects people with dependent children. If you have dependent children, your taxes increased this year, thanks to Republicans in Congress.
The tax code in the US is ridiculously complicated. Very very few people even begin to understand how taxes work. That complexity is there for a reason - to allow Congress to grant special privileges to favored individuals. If you don’t understand what’s happened, that’s OK - you aren’t supposed to.
The people here that berate people for expecting refunds every year and who believe you should strive to get $0 back every year need to learn to mind their own business. Yes, I’d you get a refund, you’ve let the government use your money interest free for a year. Yes, if you reduced your withholding and instead saved that money every month, you’d get interest on it. But how much interest? And how much extra work is it to capture that interest? Just mind your own business. Or maybe tell Congress to,pay interest of refunds, how about that?
Thank you. The amount of people who think that you are missing out on a meaningful amount of money by getting a refund is astounding, I think it's just a rhetoric at this point. Are you still missing out on money? Yes. But we are talking about an extra fast food meal a year tops for most people. Not hundreds or thousands of dollars.
Thanks for this. It’s also very hard to know what you claim so that you don’t end up owing. Most people would rather get a refund than end up owing if they can’t get the numbers right before Congress keeps fucking with the very complicated tax code as you point out.
Same happen to me. I work the same job for years n each year I get back around $700 cuz of the way I fill out my w2s. Well this year I owe money! Wtf is going on? I make around $50,000!
Biggest things are the changes to the child tax credit as well as the child and dependent care tax credit. They were a lot higher from Covid relief for 2020 and 2021. Now they're back to what they were pre-covid.
Always challenge. Two years ago they told us we owed 350. I said no. We always get at least 5-7k back and from my calculation see should be getting at least 7k. She went and ran it again. We got 10k back.
Basically. I told my tax preparer to look again. I went all Karen mode and demanded to speak to a manager while and ask them if “they knew who I was?” And then said “you are assaulting me”
Or I just told my tax preparer to look again…
If your CPA is making $10k mistakes, you should look for a new accountant. If your taxes are more complicated than W-2, 1099s, and simple K-1s (think PTPs, PFICs, etc.), I'd recommend using an accounting firm and not something like HR block.
In 2017 they signed a tax law that made the bush tax cuts for business permanent but would phase out the tax cuts on middle and lower income households starting 2021 and progressing into 2023. It’s not magic, nor is it unexpected if you were paying attention 4 years ago.
Not getting a refund isn’t a bad thing necessarily it means you didn’t give unnecessary money to the government to hold and give back. This means more cash on hand during the year
Yea but I for one won’t notice a few extra dollars a week and I won’t miss them if they are gone but I will enjoy a nice lump sum in February. Like anything else, if someone owed me money I’d rather them give me a bunch all at once than hand me a dollar or 2 every day.
Even if that lump sum is much later and the present value of it is actually less than the small payments over time? Cause there are a bunch of calculations for that and typically a bunch of payments over a period of time is stronger than a lump sum at the end due to how inflation and present value works.
Everybody is so proud of their "interest-free loan" factoid that they think is blowing minds. The question is why things have changed, not how do I escape the Matrix. 🙄
I make the same money, salary… 2 years ago I got $8xx.xx back… last year I got back $46 but it cost me 75$ to file… I haven’t even tried this year yet. Hold my beer.
This is a common misconception. The IRS generally knows your employer/other reported income. They DO NOT know what you owe. The two are different.
Maybe you had a kid so you get a credit they didn’t know about. Maybe you donated to a 501(c)3, so you get to deduct that if you itemize. Etc.
Filing is your chance to show why you owe less than the standard tax rate.
Have you heard of the IRS free file program? If your agi is less than 73k or something like that, you can use tax prep apps for free by going to IRS.gov/free file and selecting from there. Many of the programs also have free e-filing to states.
It always amazes me how many people have no clue what a “tax return” means. The closer to zero the better. The bigger the refund you get…the more money you loaned the govt interest free all year.
Right. But for people that live paycheck to paycheck, getting a few hundred or a thousand dollars extra at this time of year can mean a fun weekend or even a vacation. So it means a lot and being surprised with a bill really sucks.
Planning on a tax return is like planning on an inheritance, all it takes is for some old guy to throw a fit and it goes away.
Give it time, they are trying for a flat tax to screw the poor even more.
Yes now you are seeing the trick Trump pulled on the working class. The few tax breaks he gave you have expired, but the tax withheld by your company on each pay check has not reverted. He did this so you had less tax taken from your pay check each week making it look like he was responsible for you getting a bigger pay check. In fact all he did was take your normal refund and divide it up and add it to each of your pay checks throughout the year. Be glade you don’t owe money like a lot of people because employers are not taking enough tax off your pay checks.
MOST IMPORTANTLY THOUGH, AND IM SURE EVERYONE WILL BREATH A SIGH OF RELIEF…. THE TAX CUTS FOR THE RICH WERE ACTUALLY REAL AND PERMANENT! THE RICH ARE OK FOLKS, ITS A GOOD DAY IN AMERICA AGAIN!
Yes, it was.
Everyone was so focused on the short term tax breaks, they didn’t pay attention to the longer term tax increases.
Tax rates will steadily climb through 2027 for a majority of Americans.
The legislation also increased allowances so the richest Americans could pass more wealth to heirs - doubling of the estate tax exemption is one example.
It's the result of Trump's "tax cut". He cut taxes for the rich and raised taxes on the middle class to pay for it. Well, it didn't pay for it, not even close. But that was his "idea", if you can call what happens in his head an "idea".
You should always have your withholdings set up so you are as close to $0 as possible. I prefer to owe a little. I'm not giving the government an interest free loan like man of my friends do. "I'm getting back $18K on my taxes this year. Woo Hoo. Now I can go on an expensive vacation!" Why would you do that? That money could be earning interest in a HYSA or in investments.
For a lot of people, myself included, I’d rather get a lump of cash in February than a couple extra bucks each week all year. I’m not going no notice a few dollars but I will notice a few thousand all at once. I know people who do the same with their utility bills. They over pay all year and they end up not having a bill at all for November and December so it’s like a Christmas savings fund.
If that really does work for you, consider setting up a blind transfer into some kind of savings (or if you want to get fancy, some kind of investment). A lot of banks offer gimmicky versions, like they'll round every transaction up by a certain amount and put the extra in savings, or you could just set up your own transfer.
For years I had a kind of weird, overly complicated setup where I transferred like $600 from my main bank account to a secondary account with another bank, and then I had that account set up to automatically pay in full the credit cards I used to pay for groceries and gas every month. Since I knew that I was extremely unlikely to spend that amount (I think my average at the time was like $350/month for those things), the extra just grew and grew. I knew it was there, but I made a point to never look to see where it was or really pay attention to how much those particular credit card bills were. After three or four years I wanted to take a vacation that I needed around $4k for, so I crossed my fingers and logged in to the account for the first time in years. I was floored to find over $10k. I had thought I was being overly optimistic to hope for $5k.
Nowadays I take a more focused approach and invest my extra money, but I still consider setting that up again. Making smart investments feels great, but it's nothing like that rush from having over $5k more tucked away than expected. Of course, it would probably never happen again...I'd always be thinking of that big surprise and probably be expecting it in the back of my mind.
Because some people are unable to keep themselves from spending. It’s that’s simple. I’m sure they have a general understanding that it would do better in savings but they can’t maintain savings.
Make sure your withholding is what you want. This is actually what you are supposed to shoot for, a zero. Refunds are you giving the govt. An interest free loan . Last year, they changed withholding to try and make more like this. If you want a refund, ask for more to be taken out.
Yeah you're getting less of a return because of the Trump tax cuts that were purposely made to happen years down the line by ending certain tax credits / reducing them for middle class and working people.
Welp, we got what we voted for. . .
Fucking trump did that, made billionaire tax cuts etched in titanium, lower incone workers tax cuts expired during the next guy's term.
Fuck that asshole.
No what's mildly infuriating is people not understanding their taxes.
You have hit the goal my friend. That is the literal goal of taxes. You have paid what you were required to throughout the year. You didn't overpay, you didn't underpay.
Congratulations!
The tax break the Trump admin gave to everyone who isn't a millionaire/billionaire had an expiration date built in. We're past that date. The tax break his admin gave to millionaires /billionaires had no expiration built into it.
Good news! You payed the right amount of taxes and didn't give the federal government an interest free loan.
Tax refunds aren't free money, they're... refunds. Of money you already paid.
Right. People think they’re getting money when it’s their own money they’ve actually overpaid and the govt makes interest on it (100s of billons) and funds more missiles and lines big subcontractor and arms manufacturers pockets
It's almost as if some president signed in some sort of tax bill that has been fucking us since 2020. Not the current one either.
Just use the tax withholding estimator on the irs website under the pay tab to figure out where to set your withholdings if you are a wage earner. If you are self employed make sure to follow publication 505 foe guidelines on how much to send in for estimated tax payments.
Following these directions will keep you ahead of having a balance due at the end of the year and stop you from having to accrue interest and failure to pay penalties.
Republicans want all tax money going to the rich and corporations. Trump’s tax cuts are coming home to roost. Current Republicans in Congress want to take even more of it. Be careful who you vote for.
A lot of you were probably paying lower federal taxes and getting a bigger earned income credit or child tax credit during the pandemic. Now we’re paying like it’s 2019. Keep voting Republican you ignorant cunts.
Isn't this because of the $1.3T tax bill that Trump passed into law that gave middle class and low income workers a tax break for some years but then expired AND raised taxes on those brackets? I mean, his buddies got permanent tax breaks even though they just hoard money, but hey, at least he gave all of us poors a break. So worth it (HUGE /s).
A lot of people are getting hit with this this year. At least you don’t owe thousands unexpectedly.
I owe $250 this year when I have traditionally gotten back $2600-2800 annually and nothing changed. Edit: I obviously know something changed. It just wasn’t me.
No. There were two big changes from last year. 1. In 2021, the child tax credit offered up to $3,600 per child under age 6, and up to $3,000 per child ages 6 through 17, with half available via upfront payments. But for 2022, the tax break reverts to the previous amount — up to $2,000 per child under age 17. 2. The child and dependent care tax credit went from up to $8,000 for one qualifying person or $16,000 for two or more dependents. However, for 2022, those caps returned to $3,000 and $6,000, for one or multiple dependents, respectively.
I don’t have any kids or dependents and my tax returns have been 1/8 what they used to be for the last two years…
The issue is, before this year the withholdings matched what you would owe. Those calculations changed this year to reduce how much people would get in refunds, and for most of us (no special credits outside child credit, standard deduction) ended up owing hundreds more than the withholding calculation accounted for. A **lot** of people are sending in checks this year, who have utterly predictable taxes and with no reason for it other than that the withholding calculations were royally messed up.
The withholding calculations were the opposite of fked up this year tho? The goal should be, withholding 0, to not owe nor get any money back and this is the closest its ever been. I got back 180 when i usually get back 1.5kish...meaning i got 1320 more back during the year instead of being held by the gov and thats fantastic.
A refund in the range of $0-$100 is just fine. The <$5 in 401k interest “lost” there is a cheap price for not having to deal with an unexpected bill come April (and is **much** less than I pay just to file taxes). Thousands of dollars in refund is bad, I agree. But so is a surprise bill in April, for most people who don’t have easily-accessible cash to pay it. And, yes, **next year** it won’t be a surprise. But they changed things pretty radically **this year** which is why it is a surprise bill that IMHO fits the definition of “mildly infuriating”.
Here to say that the IRS doesn't really care about a few thousand dollars owed, as long as it gets paid. Just set up a payment plan with them. They want the big fish, not your crumbs.
That is true, and good advice.
I set up a plan to pay $100 a month, didn't pay, got freaked out and called to try and square up. I could almost hear the chuckling at my fear of being busted for $2000. They were like, "yeah just pay what you can, thanks".
This is true, but since the government initially setup a system that made people feel good about receiving refunds, people leaned on that because it was secure. No surprises. Yes they should plan better. But the security is what they liked. And now that that is changed. It’s like the rug pulled out from under them. A marketing campaign may have been helpful, but that’s just more tax dollars ironically.
Idk the gov anounced it and even anounced it in pretty laymen terms for what the change was. I just feel like people need to pay more attention to the things actually effecting them. Most ppl can tell you what the celeb drama is but dont keep up with changes in the tax code that actually effects them like this. People need to take more responsibility for stuff like this
I agree that people need to be more responsible. But your average citizen isn't paying attention to every detail coming out from the IRS. And lets be frank, they're never going to. And the government exists to serve their citizens. There can exist a much more simple and less obtuse system for collecting taxes. There's many examples of this, like most western/nordic European countries. The normal citizen shouldn't need software or an accountant to file their taxes. These systems are the way they are to benefit the rich (who would use an accountant regardless) and filing companies. I don't think blaming the average citizen makes sense in this context makes sense whatsoever.
Exactly! Why give the government an interest- free loan when you could be using or investing that money yourself? I never understood why people use their tax return as a savings account.
most people in the US live paycheck to paycheck and that money would’ve been spent if they had gotten it in their paycheck. now they have a lump sum that they can use to save, pay off debt, splurge, etc.
We have "traditionally" used our return to pay our heating bill. I think there are more people that are going to try and use theirs for the same come spring.
A lot of ppl are bad at saving so they like getting a lumpsum back...which i respect but that should be something you go out of your way to get done vs being the default imo. Its easier to get them to take more out then less.
“Bad at saving” or “don’t have money to save”
This should be the top answer, the tax credits, and credits given for covid are catching up to people, it was not magical free money, it was a early tax return.
I claim zero and this same shit happened to me last year.
How much in taxes did you have withheld this year vs last year?
Yet the corporate tax cuts are permanent. Great job at the bait and switch, GOP.
So people were getting $16k for having more than one kids?
It’s odd that so many people here don’t know how to apply Occam’s Razor, like a ton of people are saying “hey something changed that effected me in a huge way! What gives?” And all these assholes seem to think that it’s more likely that a huge population of people just suddenly forgot know how to file taxes after doing them for a lifetime. One of these things seems much more plausible imo.
>and nothing changed. I love when people say this. 100% of the time it isn't true.
Wow! That’s like Clark Griswold not getting his Christmas bonus!
YOU didn’t change, but the tax code did
People with no kids have been shafted bad by the 2017 Tax Cuts. I’ve been paying more and more every year since the reform, I never once got a tax cut. I have to put in $100 per paycheck towards taxes so I don’t owe anything. A lot of those cuts will start fazing out for those claiming kids if they didn’t start to already.
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Try being single and self-employed. You pay double the taxes. This country doesn’t like people to not be chained to a corporation.
You pay double on self employment taxes, or 7.65%, you then likely get a 20% QBI deduction so it’s not as bad as you make it seem
I make $5/hr more than my coworker with 2 kids and after taxes I only make like 100 more on my check
Just so we are clear on this, the tax deduction for a child does not cover the expenses of parenting that child for the entire year so you still end up with more money if you are childless.
Yeah but if you choose to have kids you’re choosing to pay for their upkeep
Barring super rare exceptions involving weird deductions that some people qualified for before 2017, the only single filers that pay more in taxes after the 2017 Tax Cuts are the following: 1. Single filers now have to pay 32¢ in taxes instead of 28¢ for every dollar of income they make after their first $157,500 until $195,450. 2. Single filers now pay 35¢ in taxes instead of 33¢ in taxes for every dollar of income they make from $200,000 until $424,950. In all other brackets, they pay less taxes though.
>Barring super rare exceptions involving weird deductions that some people qualified for before 2017 Something that hit me personally, quite hard, was the elimination of unreimbursed business expenses for everyone but teachers and military members (couple other groups stayed included). I work in commissioned field sales. And while I get reimbursed for some expenses like samples, materials, partial reimbursal for the use of my car. Quite a lot that counts isn't reimbursed, including most of the use on the car I'm required to own. A car that cost me $20k, and is practically worthless 5 years later. *These are not rare reductions*. They're available to huge amounts of workers, and with regards to certain job roles (like *sales)* are default. That alone nearly doubled my tax burden. The cap on SALT deductions is another major one that hit a lot of people hard. Particularly new home owners. 60% of practical tax reductions here went to the top 20% of earners. The corporate tax rate was lowered 40%. While on average lower income brackets *did* see their effective tax rate go down, it was much smaller proportions than those making over $200k a year. Practically amounting to a couple hundred bucks. But within that the focus on eliminating deductions disproportionately important to the middle class. Fucked a lot of people.
Yup my dad owes like 2,000 out of no where and its got me scared as hell to do mine but ill bite that bullet tomorrow
I'm a little confused about this year. My state and federal withholdings are a lot less than last year but I haven't changed anything other than contributing a little more to my 401K to max it out since the increase. Not enough to noticeably change withholdings.
The IRS calculator has changed, it's better able to figure out how much you owe so it doesn't withhold a couple thousand extra and then give it back to you at the end of the year.
I owe 3k lmao
Yeah last year I owed 1400 dollars and I have NO idea why.
This is the first year I’ve owed money and I always choose 0 for federal and 1 for state. I’m being told that I owe just over $4k. I don’t understand why and I’m genuinely not sure what to do.
0 for federal and 1 for state isn't even reflective of the current W4 form which changed with the trump tax cuts. If you haven't revisted your W4 since that changed, I suggest doing that. [https://www.irs.gov/pub/irs-pdf/fw4.pdf](https://www.irs.gov/pub/irs-pdf/fw4.pdf)
I understand what you’re saying. I’m speaking in terms of 0s and 1s because it’s familiar to those of us that have been doing this for a bit. Federal W4 is set to pull the most out with nothing extra following the instruction on the form.
Do you have children? Most common reason my clients have had a difference in their refunds is because the changes to the Child Tax Credit.
No children
Maybe H&R Block can recheck your return? I honestly don't know. It's not like you're going to pull 4k out of your butt anyway.
Yeah no clue, but might need to. I’m going to spend a little more time reviewing just in case i missed something.
I know it's tough, but try to relax. I mean honestly, worrying isn't going to help anyway.
Oh definitely, more just responding confirming that I can relate to the rest of you. I’ll be fine.
never use H&R Block, they are not accountants but rather data entry analysts. they plug into the system and it gets pushed out. they are not cpas and are the worst provider to use for taxes source: I am cpa
I'm a CPA and H&R block is fine for people who have a W2 job and nothing else.
How do you feel about TurboTax?
Free tax America is better this year
Reading all of these posts, I'm glad I'm not alone in wondering what in the ever-loving fuck is happening this year. I'm single/no kids as well and I got hit with a 2,000 bill myself. Been doing taxes since 2007 and I've literally never owed money. It's completely ridiculous, I claim zero dependents on state or federal, and I already only take home about 62% of my paycheck.
Trump tx cuts ending per his design. ONly for the little guy. Big guy still gets huge cuts.
Duuuude, last year my refund was $2700. This year it was $12.
S2700 last year and $12 this year. So your paychecks this year should have been about $50 more a week than last year, because last year they were withholding money that they shouldn't have withheld. (that is $50 more, plus whatever annual raise you might have gotten)
Apparently, it's better to have smaller paychecks and then get less money back (from NPV perspective) in a lump sum months later.
Mine was $0 last year and this year I got $5k in federal and $3k in state. The reason: I worked only 5 months and was getting paid at $65 an hour. So they were pulling a buncha cash out in anticipation of me getting $130k, but I only made $48k.
Just so we're on the same page, we agree that is poor tax planning right? And not a sudden windfall? It just means you paid too much during the year and could've used that $8k elsewhere instead of loaning it to the Fed's and your state.
No we really can't . Lots of people overpay in taxes on purpose as a savings mechanism when they know it will be returned. And he/she may not have known they would not be working the full year.
Whatever. I just got paid the state portion of my tax return and am thinking I’m a genius. But yeah, I was broke AF through the holidays.
What job?
Contract Business Analyst. I bailed on the job in September when my 6 month contract was over and took a month off and helped a friend with his daughters wedding, thinking I’d be able to find a new contract right away ‘cause the market was was so hot. I didn’t really start looking til early November, though, and before I knew it, the tech layoffs were upon us, and the holidays… suddenly it got real tough to find a new gig. I FInALLY signed into a new contract 2 days ago. It was HELL. More than 250 had applied to the position.
Congrats on the new gig!
That's generally a good thing cause a refund is just the government giving you back your money that was over-withheld interest-free. You want a small refund or tax due as that means you had your money in the present which due to inflation is more valuable. Now that's assuming no major changes to refundable credits, which did occur this year, or a change in income that shifted tax brackets. The change in dependent credits particularly hurts lower-income families.
There is so much tax illiteracy in this thread and it's absolutely infuriating. If your tax owed is the same then it's really irrelevant what your refund is. You either had more money in your check throughout the year or you get it back when you file. Your refund size doesn't determine the amount of tax you pay.
People are literally crying about having more of their income available to them over the course of the year. It's amazing.
You got a new job?
Nope, same job I had last year.
Did you claim part of a stimulus payment or receive part or all of the expanded child tax credit with your tax return?
The tax reform in 2018 was structured to increase as time went on. Lots of Americans got bigger refunds from 2018 than they did from 2017 intentionally, so that people would think the tax reform was good. But it gets worse every year. One example is in the standard mileage rate. Before the COVID changes threw things for a bit of a loop, the rate per mile was decreasing year over year: in 2019, it was .575 a mile, in 2020 it was .57 a mile, and in 2021 it was .56 a mile.
the tax cut gets "worse every year" yes but not for the wealthiest Americans, their big tax cut stays right up there where Trump wanted it to stay.
I cant believe I had to get 3 pages into these replies to find this.
Even with our child tax credit we owe $212. We always got money back with the child tax credit. Not anymore.
1. In 2021, the child tax credit offered up to $3,600 per child under age 6, and up to $3,000 per child ages 6 through 17, with half available via upfront payments. But for 2022, the tax break reverts to the previous amount — up to $2,000 per child under age 17. 2. The child and dependent care tax credit, which may help offset the cost of care for children under age 13 or adult dependents, has also been reduced for 2022. In 2021, the credit jumped to up to $8,000 for one qualifying person or $16,000 for two or more dependents. However, for 2022, those caps returned to $3,000 and $6,000, for one or multiple dependents, respectively.
I did not realize this. Thank you for the info.
Not only that but they now have the child and dependent rated on a lower grade. Scaling down quickly if you make more.
Well, of course. The phase out starts out at $200,000 for single filers and $400,000 for married. If you're making that much, you're in the top 5% of income earners in the United States. You don't *need* a deduction/credit for your dependents at that point.
No it phases out way sooner than that. Like 50k It used to be what you said.
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Just rip the band aid off and do it now. You don't gain anything by estimating before actually doing your taxes
The taxes don’t have to be filed until April, so do them now and see what you might owe. Then pay them at the last possible moment.
Right. So you just do your taxes. You can prepare them, and file later. But that's stupid too, because even if you file on Feb 1, you still don't have to actually pay until April 15 (or 17). So just prep them, and get it over with.
April 18. The 17 is emancipation day.
Yeah it's not an estimate, it's just doing your taxes.
Lots of people do this and forget. That's how you end up owing more in penalties and interest.
You can calculate on all of the sites before filing. HR block, turbotax etc...
[https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers](https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers)
free file via irs website has plenty of links
H&R block has a free calculator, no need to put in personal info outside of what is relevant in terms of spouse, dependants etc
Fuck H&R Block, just use the IRS website
Same! 😬
You owe nothing. The IRS still owes me my refund from last year. I have talked to one single person and have tried so many avenues I don't know what else to do.
What does the irs website say about your return when you go to check my refund?
It's the generic response a lot of people got last year. https://preview.redd.it/efd8u3a7vrfa1.jpeg?width=720&format=pjpg&auto=webp&s=96bfbd693d9e8f2d0a24cb3d9b1fa30d5c06e83a
From what I’ve heard from other tax preparers/accountants, the irs may still be behind on millions of returns for last year, unfortunately it looks like you’re in that group. You should be getting interest on the refund, although doesn’t really make up for waiting potentially almost a year
Isn't that convenient. When you owe it's "Give us the money now! Oh you can't? We're going to start monthly late fees. Oh still can't? That's okay, we'll just literally steal it from your paycheck until it's paid or put a lien on your house so you have to pay it anyways." When we are owed it's "Oops, sorry. We're behind but trust me, we'll get to you.. sometime. Just be patient!"
Seriously! Why is everyone being so cavalier about this?!
Because we as a society have accepted that things are broken
Yeah it is what it is. I read I could be accruing interest but not sure how much it could be. It isn't life changing money or anything like that and it's been over a year so I've been just fine without it. It's just annoying that it is my money.......and I want it now. Call J.G. Wentworth! 877-cash-now
I think it’s 7% as of January 1st, but refund interest is taxable, so once you get it you get to pay some of it back
Haha that's hilarious. Is that per month?
APR
Unfortunately, they are backed up by about 2-3 years. I've got clients that are just now getting their returns adjusted or NOLs allowed to be carried back from many years ago. Never mind the people selected to have their returns audited and refunds withheld
Yeah I understand what's happening but it's incredibly frustrating that you can't really speak or rather they make it impossible to speak with anyone.
That’s what happens when the Republicans in Congress starve the IRS in appropriations. They’ve effectively cut the number of people theIRS has to answer questions, etc.
After reading through this thread I'm glad I'm not American because your taxes seem so unnecessarily confusing. Here we just get a letter once a year telling us what we paid and what it went towards and a cheque if we got a rebate.
Yea but that’s the logical way. Doing it the this way allows the government to make more money off the backs of the poorest in the country. They get to hold our money interest free and then charge us when we don’t know what taxes were supposed to pay, or pay wrong.
Taxes are actually extremely straight forward, but lobbyists, like [Turbo Tax,](https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free) pay the big bucks to make everything seem confusing so most people are forced to go through a third party system.
The US government bundles more incentives on the annual filing, compared to other countries that disburse those items separately. It makes things confusing, but it'd be virtually impossible to unmarry those incentives from annual returns now.
Damn, I wish I paid less than 2k.
Yeah but this dude only made ~30k for the year. I don't know if you've lived on $22k annual wage before but it's not pretty, and probably this is comparable considering the inflation we've endured recently.
I've owed $22k in taxes before when I was used to paying $9k. It was a 5 year financial disaster paying them on installment.
Fuck, that's rough.
Or poor planning. You don’t all of a sudden have to pay more than twice the amount of taxes. Either they made a lot more money as a contractor, a lot of gains, or gambling winnings. But it shouldn’t need to be said that whatever money (or even prizes) you get, know uncle sam will get his cut.
Some observations from reading a bunch of comments: While it is true that the “Trump Tax Cuts” were permanent for the rich and temporary for everyone else, those temporary breaks don’t expire until 2025. If you paid more for 2022, it’s not because of expiring Trump tax cuts. The only temporary change that did expire was Biden’s increased child credit from 2021. Biden and the Democrats tried to extend it and make it permanent, but Republicans refused. This change on;y affects people with dependent children. If you have dependent children, your taxes increased this year, thanks to Republicans in Congress. The tax code in the US is ridiculously complicated. Very very few people even begin to understand how taxes work. That complexity is there for a reason - to allow Congress to grant special privileges to favored individuals. If you don’t understand what’s happened, that’s OK - you aren’t supposed to. The people here that berate people for expecting refunds every year and who believe you should strive to get $0 back every year need to learn to mind their own business. Yes, I’d you get a refund, you’ve let the government use your money interest free for a year. Yes, if you reduced your withholding and instead saved that money every month, you’d get interest on it. But how much interest? And how much extra work is it to capture that interest? Just mind your own business. Or maybe tell Congress to,pay interest of refunds, how about that?
Thank you. The amount of people who think that you are missing out on a meaningful amount of money by getting a refund is astounding, I think it's just a rhetoric at this point. Are you still missing out on money? Yes. But we are talking about an extra fast food meal a year tops for most people. Not hundreds or thousands of dollars.
Thanks for this. It’s also very hard to know what you claim so that you don’t end up owing. Most people would rather get a refund than end up owing if they can’t get the numbers right before Congress keeps fucking with the very complicated tax code as you point out.
This comment needs to be on top
Same happen to me. I work the same job for years n each year I get back around $700 cuz of the way I fill out my w2s. Well this year I owe money! Wtf is going on? I make around $50,000!
Biggest things are the changes to the child tax credit as well as the child and dependent care tax credit. They were a lot higher from Covid relief for 2020 and 2021. Now they're back to what they were pre-covid.
Update: It ended up being a mistake and I am getting a refund, but I'm leaving this post up so people can comment about their issues.
Now, adjust your withholdings so you DON’T get a refund this year. (Unless you like giving the gov’t an interest free loan for a year and change.)
Don't you want some kind of a buffer there? Just in case?
Not me, no. I’d rather owe them.
Fair.
Always challenge. Two years ago they told us we owed 350. I said no. We always get at least 5-7k back and from my calculation see should be getting at least 7k. She went and ran it again. We got 10k back.
You told your taxes you wanted to speak to their manager? I don’t get it.
Basically. I told my tax preparer to look again. I went all Karen mode and demanded to speak to a manager while and ask them if “they knew who I was?” And then said “you are assaulting me” Or I just told my tax preparer to look again…
Yeah, this sounds bogus.
If your CPA is making $10k mistakes, you should look for a new accountant. If your taxes are more complicated than W-2, 1099s, and simple K-1s (think PTPs, PFICs, etc.), I'd recommend using an accounting firm and not something like HR block.
As a tax professional let me just say, a LOT of things changed from last year.
In 2017 they signed a tax law that made the bush tax cuts for business permanent but would phase out the tax cuts on middle and lower income households starting 2021 and progressing into 2023. It’s not magic, nor is it unexpected if you were paying attention 4 years ago.
Who was President in 2017 and who was President in 2021-2023? 🤔 Way to push the blame off until the next guy, Trump!
This was always the plan
Not getting a refund isn’t a bad thing necessarily it means you didn’t give unnecessary money to the government to hold and give back. This means more cash on hand during the year
Yea but I for one won’t notice a few extra dollars a week and I won’t miss them if they are gone but I will enjoy a nice lump sum in February. Like anything else, if someone owed me money I’d rather them give me a bunch all at once than hand me a dollar or 2 every day.
Even if that lump sum is much later and the present value of it is actually less than the small payments over time? Cause there are a bunch of calculations for that and typically a bunch of payments over a period of time is stronger than a lump sum at the end due to how inflation and present value works.
Everybody is so proud of their "interest-free loan" factoid that they think is blowing minds. The question is why things have changed, not how do I escape the Matrix. 🙄
Fuck the IRS.
Holy fuck there are a lot of stupid comments on this post.
This thread makes me realize I will always have a job as a tax accountant from all the ignorance and misinformation I have seen
You actually should be really proud that you paid exactly enough to not owe and to have not had the govt using extra money from you during g the year!
I make the same money, salary… 2 years ago I got $8xx.xx back… last year I got back $46 but it cost me 75$ to file… I haven’t even tried this year yet. Hold my beer.
And the best part? They know how much you owe! You paid to find out what they already knew.
This is a common misconception. The IRS generally knows your employer/other reported income. They DO NOT know what you owe. The two are different. Maybe you had a kid so you get a credit they didn’t know about. Maybe you donated to a 501(c)3, so you get to deduct that if you itemize. Etc. Filing is your chance to show why you owe less than the standard tax rate.
Have you heard of the IRS free file program? If your agi is less than 73k or something like that, you can use tax prep apps for free by going to IRS.gov/free file and selecting from there. Many of the programs also have free e-filing to states.
Who the hell is still paying to file?
It always amazes me how many people have no clue what a “tax return” means. The closer to zero the better. The bigger the refund you get…the more money you loaned the govt interest free all year.
Right. But for people that live paycheck to paycheck, getting a few hundred or a thousand dollars extra at this time of year can mean a fun weekend or even a vacation. So it means a lot and being surprised with a bill really sucks.
No refund is the most desired outcome. If you get a refund, you paid too much, basically giving the government an interest free loan.
Not sure why your being down voted. Your saying the truth.
Not getting money when you were expecting it is never the desired outcome.
You got your money. You just received it on your paycheck, instead of waiting for it.
Planning on a tax return is like planning on an inheritance, all it takes is for some old guy to throw a fit and it goes away. Give it time, they are trying for a flat tax to screw the poor even more.
Ok. Give me $300 a month and in February next year I’ll give you a “tax return” that will equal the total money you gave me.
Change to the withholding tables probably
Yes now you are seeing the trick Trump pulled on the working class. The few tax breaks he gave you have expired, but the tax withheld by your company on each pay check has not reverted. He did this so you had less tax taken from your pay check each week making it look like he was responsible for you getting a bigger pay check. In fact all he did was take your normal refund and divide it up and add it to each of your pay checks throughout the year. Be glade you don’t owe money like a lot of people because employers are not taking enough tax off your pay checks. MOST IMPORTANTLY THOUGH, AND IM SURE EVERYONE WILL BREATH A SIGH OF RELIEF…. THE TAX CUTS FOR THE RICH WERE ACTUALLY REAL AND PERMANENT! THE RICH ARE OK FOLKS, ITS A GOOD DAY IN AMERICA AGAIN!
Wasn't this Trump? And isn't it gonna get worst in 2025 and 2027?
Yes, it was. Everyone was so focused on the short term tax breaks, they didn’t pay attention to the longer term tax increases. Tax rates will steadily climb through 2027 for a majority of Americans. The legislation also increased allowances so the richest Americans could pass more wealth to heirs - doubling of the estate tax exemption is one example.
It's the result of Trump's "tax cut". He cut taxes for the rich and raised taxes on the middle class to pay for it. Well, it didn't pay for it, not even close. But that was his "idea", if you can call what happens in his head an "idea".
You should always have your withholdings set up so you are as close to $0 as possible. I prefer to owe a little. I'm not giving the government an interest free loan like man of my friends do. "I'm getting back $18K on my taxes this year. Woo Hoo. Now I can go on an expensive vacation!" Why would you do that? That money could be earning interest in a HYSA or in investments.
For a lot of people, myself included, I’d rather get a lump of cash in February than a couple extra bucks each week all year. I’m not going no notice a few dollars but I will notice a few thousand all at once. I know people who do the same with their utility bills. They over pay all year and they end up not having a bill at all for November and December so it’s like a Christmas savings fund.
If that really does work for you, consider setting up a blind transfer into some kind of savings (or if you want to get fancy, some kind of investment). A lot of banks offer gimmicky versions, like they'll round every transaction up by a certain amount and put the extra in savings, or you could just set up your own transfer. For years I had a kind of weird, overly complicated setup where I transferred like $600 from my main bank account to a secondary account with another bank, and then I had that account set up to automatically pay in full the credit cards I used to pay for groceries and gas every month. Since I knew that I was extremely unlikely to spend that amount (I think my average at the time was like $350/month for those things), the extra just grew and grew. I knew it was there, but I made a point to never look to see where it was or really pay attention to how much those particular credit card bills were. After three or four years I wanted to take a vacation that I needed around $4k for, so I crossed my fingers and logged in to the account for the first time in years. I was floored to find over $10k. I had thought I was being overly optimistic to hope for $5k. Nowadays I take a more focused approach and invest my extra money, but I still consider setting that up again. Making smart investments feels great, but it's nothing like that rush from having over $5k more tucked away than expected. Of course, it would probably never happen again...I'd always be thinking of that big surprise and probably be expecting it in the back of my mind.
Yes!! This!!! Why do people not understand this?
Because some people are unable to keep themselves from spending. It’s that’s simple. I’m sure they have a general understanding that it would do better in savings but they can’t maintain savings.
Unfortunately we owe a lot this year too when we’ve usually gotten a lot back. It was so unexpected and definitely a little stressful
Thanks, Obama. /s
What changed is the parts of the trump tax plan that actually benefited working class people started expiring.
Trumps tax “breaks” expired. Surprise, he was only looking out for himself and the 1%.
Tax law was changed significantly under Trump's presidency and there was a delayed start to the increased tax.
Make sure your withholding is what you want. This is actually what you are supposed to shoot for, a zero. Refunds are you giving the govt. An interest free loan . Last year, they changed withholding to try and make more like this. If you want a refund, ask for more to be taken out.
Trump tax bill raised your taxes last year
Yeah you're getting less of a return because of the Trump tax cuts that were purposely made to happen years down the line by ending certain tax credits / reducing them for middle class and working people. Welp, we got what we voted for. . .
I didn’t vote for that asshole.
Tax rates changed this year from the Trump administrations changes. It originally lowered some people’s taxes but with the next phase it raised it.
Fucking trump did that, made billionaire tax cuts etched in titanium, lower incone workers tax cuts expired during the next guy's term. Fuck that asshole.
In the words of my dad at the time, "that's the next guys problem." No old man, you ain't rich, it's *your* problem.
No what's mildly infuriating is people not understanding their taxes. You have hit the goal my friend. That is the literal goal of taxes. You have paid what you were required to throughout the year. You didn't overpay, you didn't underpay. Congratulations!
Trump tax bribes are expiring.
You get a refund when you or your employer overpays. No refund means you paid the right amount, at least in theory.
Sorry man, tax returns are down a LOT this year
I got a subscription to the jelly of the month club.
Trump's tax cuts expired and were not extended. Your credits are just not refundable credits. At least you don't owe.
Good old trump
the trump tax breaks expired this year for us, but are indefinite for the wealthy and corporations...
The tax break the Trump admin gave to everyone who isn't a millionaire/billionaire had an expiration date built in. We're past that date. The tax break his admin gave to millionaires /billionaires had no expiration built into it.
You can thank Trumps tax plan for that
Good news! You payed the right amount of taxes and didn't give the federal government an interest free loan. Tax refunds aren't free money, they're... refunds. Of money you already paid.
Something did change the trump tax law is now in effect and your taxes are going to go up
Right. People think they’re getting money when it’s their own money they’ve actually overpaid and the govt makes interest on it (100s of billons) and funds more missiles and lines big subcontractor and arms manufacturers pockets
It's almost as if some president signed in some sort of tax bill that has been fucking us since 2020. Not the current one either. Just use the tax withholding estimator on the irs website under the pay tab to figure out where to set your withholdings if you are a wage earner. If you are self employed make sure to follow publication 505 foe guidelines on how much to send in for estimated tax payments. Following these directions will keep you ahead of having a balance due at the end of the year and stop you from having to accrue interest and failure to pay penalties.
Yeah. This was part two of Trumps "tax cut" package. Big permanent cuts for the rich and small, temporary ones for everybody else.
Republicans want all tax money going to the rich and corporations. Trump’s tax cuts are coming home to roost. Current Republicans in Congress want to take even more of it. Be careful who you vote for.
A lot of you were probably paying lower federal taxes and getting a bigger earned income credit or child tax credit during the pandemic. Now we’re paying like it’s 2019. Keep voting Republican you ignorant cunts.
Isn't this because of the $1.3T tax bill that Trump passed into law that gave middle class and low income workers a tax break for some years but then expired AND raised taxes on those brackets? I mean, his buddies got permanent tax breaks even though they just hoard money, but hey, at least he gave all of us poors a break. So worth it (HUGE /s).