{{ Scrappy }}

Yeah, withholding was reduced at least in part to make the tax bill more popular. Problem is that for most people the difference wasn't enough to really notice and when tax season comes, surprise! In hindsight, probably not the best plan.

Something interesting just happened this weekend. I was contacted by a company because they had seen my name in the opened-sourced IRIS code and apparently want to talk to me about a job. Well, initially they just wanted to ask some questions about the code but one thing led to another. Kinda awkward since I just accepted a job offer. Don't know if that will go anywhere or not.

Wow, I really don't want to be back at work.

I suppose you don't have to be there mentally.

unless I did something wrong, my taxes swung almost $900 the wrong way. $700 refund last year, this year I owe $165.

Yeah, you probably did not do anything wrong.

In addition to abusing the middle-class six ways to Sunday, while fellating the rich with the new tax laws, this mis-administration also reduced withholding, so people would see more money in their weekly checks, which would give the economy a little sugar high.

My tax story, let me show you it.

Dh was laid off from Job A at the end of 2017. He then got severance, which paid out monthly for some time in 2018, and was lucky enough to start Job B not too long into 2018, so as layoffs go, we were lucky.

We knew that because of all of the tax shenanigans, plus the months of extra pay, we'd be screwed come tax time, so for both the severance pay and his regular pay at the new job, he claimed zero allowances, plus had both employers withhold extra money from his check (see items 5 and 6: [link]

We filed our taxes Saturday. If not for a weird phenomenon which I'm against in principle, the accountant told us we would have had to pay an extra $5,000.00 out of pocket, in addition to all the extra dh had withheld from both workplaces.

See, both Job A and Job B withheld FICA from him, but he maxed out for the year in Job B, so the extra FICA payments deducted from the Job A severance are what saved our butts.

We're lucky that we're not the average family who does not have $400.00 for an emergency (but we have been, and in the not so distant past), but with college bills for two kids and all of our new medical bills, I would have had to ask the IRS if they would take that $5,000.00 out in trade. And I'm regular 52, and not a Demi Moore at 52, so I don't think my going rate would be that lucrative.

Thank you, Cindy, for reminding me that it was possible to have your employer withhold extra money. I had to pay tax this year and TurboTax wanted me to fill out and send in quarterly estimated payments for this year. As if I'd ever remember to do that. Much easier to have my employer withhold the monthly equivalent.

Hi, bennett! I'm sorry you had to pay. They really did us dirty with the withholding games.

Dh has to up his withholding again. Our tax guy said to change it from "married" to "single," which I think he's going to do, but we're going to withhold a little more too, just in case.

The thing I'm against in principle: If you make enough money each year, you max out your FICA withholding. This is regressive, but is what saved our asses.

The right is always bitching about how Social Security is going to be the ruination of this country, but in part, that's because the fix is in -- as I'm sure everyone here understands, but I just need to vent -- the more money you make, the more the fix favors you.

In 2018, every worker from part-time waitress to Warren Buffet*, paid 6.2% via the FICA deduction toward Social Security old age, survivor, and disability benefits.

BUT*...

There's a cap -- a maximum you have to pay.

For 2018, it was just under $8,000.00. So, if you make:

$35,000.00, you must pay the whole 6.2%, or $2,170.00

$50,000.00, you must pay the whole 6.2%, or $3,100.00

$100,000.00, you must pay the whole 6.2%, or $6,200.00

$128,400.00, you must pay the whole 6.2% or $7,960.80

$7,960.80 is the maximum.

So, if you make:

$200,000.00, you still pay only $7,960.80

$500,000.00, you still pay only $7,960.80

$10,000,000.00, you still pay only $7,960.80

$GAZILLION.00, you still pay only $7,960.80

Plus, we're from one of those places with high state and local taxes (SALT). We get what we pay for. Our state's schools are routinely #1. We have Romney Care, etc.

There's now a cap for SALT, and it's (proportionally) low for states which provide a lot of services; aren't "taker states"; have higher cost of living, including real estate values (and therefore higher property and other taxes, which fund our services), etc.

In addition to futching with the withholding amounts, this is what truly screwed us. Aside from tax rates themselves, our home is more expensive, not because it is great, but because it is here, and "here" is great.

Our SALT are high, but the newly instituted cap is $10,000.00, so there's suddenly a good chunk of money we pay out in taxes, which we cannot write off.

Just remember that the same people who don't think their kids should have to pay an inheritance tax, because it is double taxation, are just fine with taxing regular families on monies they've worked for but already paid out in taxes.

Next time, I'll keep the receipt from my private jet.

I'm having quietly helpless panic because the last two years I tried to use TurboTax and my return got bounced back (I think because of the way my name is filed with Soc Sec). So I used TaxAct this year, weeks and weeks ago ... and it never came back. I'm assuming that means they actually got filed, but I wish there was some kind of confirmation email or something. * And when I say bounced back, it just meant I had to print it and sign it and send it snail mail.

Signed,

Hates and Fears Tax Season (because I don't know what I'm doing)

I did my taxes over the weekend. It was -- not pretty. I also got hit on the SALT cap. Plus being married filing separately didn't help.

We were not hit quite as much as usual, because husband was unemployed for more than half of the year. If everything had remained the same as last year (which also involved some months of him being unemployed), our bill would have gone up by thousands of dollars, I think.

We sent our tax stuff to an accountant and wrote her (and by proxy the IRS and state of NY) a check. We more or less came out even on paying the feds / getting a refund from the state, which is better than we did last year by a whole bunch.

Freelance artists/performers are realizing that much of what they used to deduct is no longer deductible. If I were still getting 1099s from 10-20 different theatres I'd be hurting right now.