|
|
02-17-2020, 04:03 PM
|
#61
|
Full time employment: Posting here.
Join Date: Oct 2018
Posts: 530
|
Quote:
Originally Posted by pb4uski
When I assess what I am paying in taxes, I focus on the total tax.... not the amount due or refund... what I am paing net... at the end of the day is the important number.
It's unclear from your post what you or DH are focusing on.
|
My focus today is that I believe my husband under withheld. He assumed married “ zero” meant that we would not owe more. Tax bracket is still in the 24% tier. Not complaining about the income or the tax owed but the withholding misstep.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
02-17-2020, 04:41 PM
|
#62
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,184
|
Federal taxes have been e-filed. State return is in a sealed, stamped envelope to be dropped in the mail tomorrow.
|
|
|
02-23-2020, 04:29 PM
|
#63
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
I don't worry at all.
The year before I turned 70.5, we installed big solar panels on our roof. The then 30% Federal tax credit made it possible for me to move almost all of my TIRA into my Roth. We get a check for the next few years from the power company and I have every confidence that power costs will go up.
Now, we live comfortably on our maxed SS plus my tiny pensions and pay zero income taxes. We also live in a no-income-tax state.
My RMDs plus SS & pension are below the taxable limit. We could even earn another $11k before needing to pay. I do file, because I have withholding on my RMDs. I have to check to see if I even have to file anymore; if not, no more withholding.
Sometimes being poor works out.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
02-23-2020, 04:34 PM
|
#64
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
I should point out that I had been over-thinking this for years. The light bulb went on only at the last minute.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
02-23-2020, 06:47 PM
|
#65
|
Thinks s/he gets paid by the post
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,697
|
Quote:
Originally Posted by Vacation4us
Up until 5 minutes ago I would have said I don’t worry about taxes. Once we retire at the end of this year we will live solely off DH pension. So minus the standard deduction we will be in the 22% bracket and taxes will automatically be withheld.
BUT I just found out dear hubby only paid 3K more in Federal taxes than me while making 58k more. Houston we have a problem. To make matters worse I ruined DH day. He was all gleeful until I explained the problem to him. Can you say BIG bill like in the 10k range. Took the wind right out of his sails.
Another good reason to retire the less you make the less they take. Having DH change his withholding ASAP for 2020.
|
ouch! a little more C&C...communication and coordination next year.
|
|
|
02-23-2020, 07:29 PM
|
#66
|
Confused about dryer sheets
Join Date: Sep 2019
Posts: 9
|
I spent some effort thinking about taxes because it allowed me to retire years earlier than if I had ignored taxes. Saved me years of fretting at the office.
|
|
|
02-23-2020, 07:40 PM
|
#67
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 5,981
|
I fret. In 2018 when I sold the bulk of that Endocyte, I had something around $240,000 in gains off of a $40,000 investment and it was all short term. I ended up paying over $50,000 in federal tax. Why couldn't they just let me keep my money...I worked hard for it...all those mouse clicks and stuff.
|
|
|
02-23-2020, 07:45 PM
|
#68
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,764
|
You might have been able to write off the medical charges for the carpal tunnel syndrome.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
02-23-2020, 08:03 PM
|
#69
|
Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,566
|
Quote:
Originally Posted by Ed_The_Gypsy
I don't worry at all.
The year before I turned 70.5, we installed big solar panels on our roof. The then 30% Federal tax credit made it possible for me to move almost all of my TIRA into my Roth. We get a check for the next few years from the power company and I have every confidence that power costs will go up.
Now, we live comfortably on our maxed SS plus my tiny pensions and pay zero income taxes. We also live in a no-income-tax state.
My RMDs plus SS & pension are below the taxable limit. We could even earn another $11k before needing to pay. I do file, because I have withholding on my RMDs. I have to check to see if I even have to file anymore; if not, no more withholding.
Sometimes being poor works out.
|
Yeah you are in the sweet spot. No taxes on your SS, 0 tax bracket, No state tax. Your RMD's will go up a little each year but sound like you have an 11k buffer for that.
|
|
|
02-23-2020, 08:04 PM
|
#70
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,201
|
Quote:
Originally Posted by Vacation4us
My focus today is that I believe my husband under withheld. He assumed married “ zero” meant that we would not owe more. Tax bracket is still in the 24% tier. Not complaining about the income or the tax owed but the withholding misstep.
|
Like the old Fram oil filter commercial.... pay me now or pay me later.
I'd much rather be underwithheld and owe than be due a refund.... especially with identy theft... thieves can't steal taxes due.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
02-23-2020, 08:26 PM
|
#71
|
Confused about dryer sheets
Join Date: Sep 2019
Posts: 9
|
Quote:
Originally Posted by pb4uski
I'd much rather be underwithheld and owe than be due a refund.... especially with identy theft... thieves can't steal taxes due.
|
All that is needed to make online payments to IRS on your behalf is your name, SSN, and address used to file in a previous year. Although I have had not had this happen, I like to protect my information, just in case.
I also try to avoid being owed a refund. Even my checking account earns better interest than letting the IRS hold it.
|
|
|
02-23-2020, 10:39 PM
|
#72
|
Recycles dryer sheets
Join Date: Aug 2018
Posts: 81
|
I know people who are completely locked in to various stocks for fear of paying taxes, and I am doing my best not to be like that. I just grit my teeth and make the best trades I can while reminding myself about not letting tails wag dogs. I remember Peter Lynch wrote long ago that taxes are a good problem to have.
|
|
|
02-23-2020, 10:54 PM
|
#73
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by Fermion
I fret. In 2018 when I sold the bulk of that Endocyte, I had something around $240,000 in gains off of a $40,000 investment and it was all short term. I ended up paying over $50,000 in federal tax. Why couldn't they just let me keep my money...I worked hard for it...all those mouse clicks and stuff.
|
To make up for the "friction loss", you just have to click harder and more often.
It's too bad they don't allow income averaging any more. The last time I could use that was in the early 80s.
PS. Just saw harley's suggestion about the medical expense write off. Or can you write it off on business expense instead, which may be more favorable due to having no deductible?
Quote:
Originally Posted by harley
You might have been able to write off the medical charges for the carpal tunnel syndrome.
|
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
02-23-2020, 11:01 PM
|
#74
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by GR111
I know people who are completely locked in to various stocks for fear of paying taxes, and I am doing my best not to be like that. I just grit my teeth and make the best trades I can while reminding myself about not letting tails wag dogs. I remember Peter Lynch wrote long ago that taxes are a good problem to have.
|
+1
I would have to go back to 2000 to see how much money I could have if I just sold my high flyers and paid the taxes.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
02-24-2020, 03:15 AM
|
#75
|
Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Switzerland
Posts: 1,045
|
I have to pay federal taxes to the US and federal, canton, and commune taxes to Switzerland. So, I do fret about getting it right.
-BB
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
|
|
|
02-24-2020, 04:32 AM
|
#76
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,196
|
Just filed taxes.
No taxes for me and my DGF was $1 over the 12% marginal limit I was shooting for with the Roth conversion.
__________________
TGIM
|
|
|
Depends on the tax bracket
02-24-2020, 06:47 AM
|
#77
|
gone traveling
Join Date: Dec 2016
Posts: 733
|
Depends on the tax bracket
Quote:
Originally Posted by dtbach
OK, I don't like paying taxes anymore than the next guy. But I don't have a lot of leeway about it as most of my income is pension, stock and mutual fund dividends and capital gains and IRA distributions.
I have an AGI of approx. $150K. I could work that down to $85K and save a couple of grand in taxes or so but why? I like living on $150K and could probably go to $175K.
I don't let the tax tail wag my income dog.
I know Robbie is probably with me, but who else might be??
|
It only really makes sense to take the effort if you can keep below the break points:
Married under $78,950 in income
& Married under $321,500 in income. To optimize between those extremes doesn't bring much benefit. & if you are pushing $320K, there isn't much you can do to bring it down to $79K.
Running my own business for a number of years, I know there isn't much you can do beyond $20-40K income reduction, while still being financially prudent. So at best you will be saving $2-4K
|
|
|
02-24-2020, 06:56 AM
|
#78
|
Full time employment: Posting here.
Join Date: Jun 2014
Posts: 518
|
I'm fretting about taxes alot this year, due to my leaving megacorp and deferred compensation for RSUs, NSOs, and SARs that has been accrued across multi-states.
My tax bill is huge and it will be higher next year. I have to figure out how to pay quarterly taxes going forward.
Once it's all set up, I won't mind it as much, but this year it has been agonizing.
Federal taxes - done.
State one taxes - done
State two taxes - done
State three taxes - Need to figure out how to fill extra form.
Estimate cash to pay for all these extra payments - done
2020-21 tax planning estimates - preliminary
Setting up quarterly payments - to do
|
|
|
02-24-2020, 09:20 AM
|
#79
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,972
|
Quote:
Originally Posted by Just_Steve
All of my retirement income is taxable and not a darn thing I can do about it.
c'est la vie.
|
Well you can, but like everything it's a choice.
Move to Puerto Rico so your income tax is only 4% , and no tax on divs/interest earned in PR. Still in America.
https://www.forbes.com/sites/robertw.../#4beb3e591362
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
02-24-2020, 09:27 AM
|
#80
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,972
|
Quote:
Originally Posted by pb4uski
Like the old Fram oil filter commercial.... pay me now or pay me later.
I'd much rather be underwithheld and owe than be due a refund.... especially with identy theft... thieves can't steal taxes due.
|
Identity thieves don't actually steal your refund. They make up a fake return and add in some children, extra withholding, and other deductions to get a giant refund.
It has nothing to do with your account, so even if you paid zero income tax all year, thieves would still get a big refund. Either way the IRS will reject the second tax return, and that's how you know it happened..
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|