Taxes Question | Imamother

amother

Wed, Mar 06 2024, 5:38 pm

I have 3 kids and my husband and I make 135 pre taxes.
Our accountant just got back to us that we owe 4,000 in taxes. Is this normal? We are living paycheck to paycheck, living very minimally. People who make more than us are always owing money to the government every year?
I just thought we would be getting money back and this is just so depressing and I don't know what we are doing wrong or if we should hire a different accountant.

amother

Bisque

Wed, Mar 06 2024, 5:40 pm

amother OP wrote:

Are you getting paid on w2 or 1099?

amother

Stonewash

Wed, Mar 06 2024, 5:47 pm

If you aren't taking the right amount off your paycheck...yes.
Over 100 is not poverty acc to the govt despite how you live! Maybe adjust your withholding for next year.

And yes, we paid 35% off paycheck plus owe.

icedcoffee

Wed, Mar 06 2024, 5:48 pm

We also owe a ton of money this year. Unfortunately I've anecdotally heard similar things from others, too. I'm sorry, I really sympathize. It sucks.

amother

Molasses

Wed, Mar 06 2024, 5:50 pm

If you’re W2 then the payroll team at your employer is doing something wrong. You should not owe this much money, they should have withheld it from your paycheck.

Did you ask the accountant to explain why you owe this money?

Did you have any other type of income that you reported? If it’s just W2 then something is off here.

On a practical note, if you don’t have the money to pay the 4K you owe now, set up a payment plan with the IRS. They do charge interest (9% annually last time I checked) but they won’t garnish your wages if you set up a payment plan.

amother

Bisque

Wed, Mar 06 2024, 5:50 pm

amother OP wrote:

That stinks and is really frustrating. I wonder if different laws were passed that affected this. Maybe change your deductions so they take off more taxes throughout the year so you don't end up owing.

amother

Wed, Mar 06 2024, 5:56 pm

amother Molasses wrote:

I think it’s because we aren’t getting that much taken throughout the year in our paychecks. I don’t know what’s better or worse to do. We asked and he explained since we both are making more money this past year and various other reasons somehow we have over $30,000 more in taxable money. I don’t understand how though…

mushkale

Wed, Mar 06 2024, 5:59 pm

The laws that were passed in like 2017 are being implemented now. It's was a 9 year plan or something like that and each year the brackets and deductions change a little more till reaching the final amount so in previous years you could've been in a different bracket but making the same amount..

amother

Anemone

Wed, Mar 06 2024, 6:03 pm

I would fill out a new W4 to send to your payroll department so you don’t have this issue next year

If all of your income is on W2, they are not withholding correct amounts