Taxes

[CNS]

Largest refund you ever received (federal only)?

$6,000 ish. What a stupid tax year. Involved a move and a large raise and bonus when I wasn't making much base at the beginning of the year, so I hadn't made any corrections in withholdings.

Yeah, I had a yr at $5,800 or $5900.  iirc, there were some tax changes that added to that by means of dependents as well as moving and a big raise. 

[kostakio]

This was a serious inquiry. 

you have to pay it, unless they are going to and will provide documentation. serious answer.

great reply. thanks. 

Techinally you should have had them fill out a w-9 out before you made this transaction and then provided them with a 1099 at year end for their portion of the winnings.  That would shift the tax burdon from you to them.  I'm guessing none of this happend so you probably just have to pay the tax. 

One thing to be sure and remember is you can offset gambling winnings with gambling losses even losses that are unreported to the IRS.  It would be good to have some type of proof of said losses.

[Mrs. Gooch]

This was a serious inquiry. 

you have to pay it, unless they are going to and will provide documentation. serious answer.

great reply. thanks. 

Techinally you should have had them fill out a w-9 out before you made this transaction and then provided them with a 1099 at year end for their portion of the winnings.  That would shift the tax burdon from you to them.  I'm guessing none of this happend so you probably just have to pay the tax. 

One thing to be sure and remember is you can offset gambling winnings with gambling losses even losses that are unreported to the IRS.  It would be good to have some type of proof of said losses.

According to Stevesie this is no longer true in Kansas.  Maybe that isn't effective until 2014 tax year?

[lopakman]

Mrs. lopak is a CPA.  Send me money and your W-2's and I'll have her do your taxes for you. 

[Fedor]

Largest refund you ever received (federal only)?

$6,000 ish. What a stupid tax year. Involved a move and a large raise and bonus when I wasn't making much base at the beginning of the year, so I hadn't made any corrections in withholdings.

Yeah, I had a yr at $5,800 or $5900.  iirc, there were some tax changes that added to that by means of dependents as well as moving and a big raise.

I have seen this a couple of times and wonder how this factors into getting a big return.  Most times mo' money = mo' (tax) problems. and fewer deductions

[michigancat]

Largest refund you ever received (federal only)?

$6,000 ish. What a stupid tax year. Involved a move and a large raise and bonus when I wasn't making much base at the beginning of the year, so I hadn't made any corrections in withholdings.

Yeah, I had a yr at $5,800 or $5900.  iirc, there were some tax changes that added to that by means of dependents as well as moving and a big raise.

I have seen this a couple of times and wonder how this factors into getting a big return.  Most times mo' money = mo' (tax) problems. and fewer deductions

I think it's because your new salary is often withheld at a higher bracket than you will actually have to pay. It also depends on how your employer calculates your withholding on your bonuses.

[slobber]

Largest refund you ever received (federal only)?

$6,000 ish. What a stupid tax year. Involved a move and a large raise and bonus when I wasn't making much base at the beginning of the year, so I hadn't made any corrections in withholdings.

Yeah, I had a yr at $5,800 or $5900.  iirc, there were some tax changes that added to that by means of dependents as well as moving and a big raise.

I have seen this a couple of times and wonder how this factors into getting a big return.  Most times mo' money = mo' (tax) problems. and fewer deductions

I think it's because your new salary is often withheld at a higher bracket than you will actually have to pay. It also depends on how your employer calculates your withholding on your bonuses.

Bonuses are taxed like you are going to earn that amount for the rest of the year. The big raise comes into play for increasing your return when you were already withholding to high of a percentage. On a smaller base, the refund is not that large, but on a larger base, the over withholding adds up.

[HerrSonntag]

I got mine last Thursday, but I feel like i'm getting too much back... free loan to the IRS and all, plus I don't like getting money back from the state because that's just one more form to track next year.  Should I add another deduction to my W-4s?

standard deduction

Wrong, this home-owning katsfan itemizes those season tickets every year

[michigancat]

Largest refund you ever received (federal only)?

$6,000 ish. What a stupid tax year. Involved a move and a large raise and bonus when I wasn't making much base at the beginning of the year, so I hadn't made any corrections in withholdings.

Yeah, I had a yr at $5,800 or $5900.  iirc, there were some tax changes that added to that by means of dependents as well as moving and a big raise.

I have seen this a couple of times and wonder how this factors into getting a big return.  Most times mo' money = mo' (tax) problems. and fewer deductions

I think it's because your new salary is often withheld at a higher bracket than you will actually have to pay. It also depends on how your employer calculates your withholding on your bonuses.

Bonuses are taxed like you are going to earn that amount for the rest of the year.

Yes, but how withholding is calculated varies from employer to employer. It's common for employers to over-withhold bonuses.

[0.42]

where in the hell did i put my w-2s?

[kostakio]

This was a serious inquiry. 

you have to pay it, unless they are going to and will provide documentation. serious answer.

great reply. thanks. 

Techinally you should have had them fill out a w-9 out before you made this transaction and then provided them with a 1099 at year end for their portion of the winnings.  That would shift the tax burdon from you to them.  I'm guessing none of this happend so you probably just have to pay the tax. 

One thing to be sure and remember is you can offset gambling winnings with gambling losses even losses that are unreported to the IRS.  It would be good to have some type of proof of said losses.

According to Stevesie this is no longer true in Kansas.  Maybe that isn't effective until 2014 tax year?

Yes I believe the law will take effect in tax year 2014 unless it gets changed.  It's a very unfair tax IMO to tax winnings but not allow people to offset them with losses.  The people it will hurt are the problem gamblers who hit a couple of big slot wins a year but still lose more than they win. 

Losses will still be deductable on federal returns though which is where most of your tax dollars go.  States just need to keep it simple and stick to the same deductions as Federal.  Brownback is doing/causing a lot of screwy things to happen to KS state taxes.   

 

[K-S-U-Wildcats!]

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

[star seed 7]

I use the standard deduction steve dave.

[Institutional Control]

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

I would think a big chunk of change in the spring would be no big deal to a high earning couple like you and the Mrs K-S-U.

[WonderMeal]

 

[K-S-U-Wildcats!]

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

I would think a big chunk of change in the spring would be no big deal to a high earning couple like you and the Mrs K-S-U.

Our kids, mortgage, the crap ton of taxes we pay, and the student loans we took out to earn those salaries would disagree. We're HENRYs - right in the prime fleecing zone when it comes to taxes. Paid an effective federal rate of 15% and another 5% to the state. Add in FICA, real and personal property taxes, and I'm up to 32%. And that doesn't include sales tax.

[Dugout DickStone]

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

Standard deduction

[michigancat]

I like the part where he cited three tax breaks as the reasons his large tax bill was a surprise.

[wetwillie]

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

I would think a big chunk of change in the spring would be no big deal to a high earning couple like you and the Mrs K-S-U.

Our kids, mortgage, the crap ton of taxes we pay, and the student loans we took out to earn those salaries would disagree. We're HENRYs - right in the prime fleecing zone when it comes to taxes. Paid an effective federal rate of 15% and another 5% to the state. Add in FICA, real and personal property taxes, and I'm up to 32%. And that doesn't include sales tax.

Why are you giving the government what is rightfully KSU's?

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I pay a CPA to to me how much to pay Kansas and Federal.  I do my taxes in August. I pay in excess of 40% of my gross to various Sheriff's of Nottingham. I think that's too much. :(

[Dugout DickStone]

I like the part where he cited three tax breaks as the reasons his large tax bill was a surprise.

Interest free loans to the gov are a pleasantly surprising way to help you save!

  

[K-S-U-Wildcats!]

I like the part where he cited three tax breaks as the reasons his large tax bill was a surprise.

Yeah... I didn't say anything of the sort.

[Dugout DickStone]

H&R Block will give you a loan against that fat return.

[wetwillie]

ksu how come you aren't reducing your taxable income with deductions more?

[michigancat]

I like the part where he cited three tax breaks as the reasons his large tax bill was a surprise.

Yeah... I didn't say anything of the sort.

Yeah, I guess property taxes could have been counted as a fourth deduction. I'll leave that up to your discretion, though.