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amother




Saddlebrown


Post  Mon, Apr 16 2018, 12:34 am
Yes, I'm going to try to talk to an accountant about this. But meanwhile venting:
We've already discussed here flaws with medicaid and food stamps that make it hard to earn more money.

Well, for as long as I can remember (DH in kollel and then in college) we got plenty of tax credits and had a refund instead of owing anything. Last year we finally started to claw our way up. Got off food stamps. Got off poverty mentality. Still getting benefit from Obamacare B"H because that almost would have broken the bank completely.

Anyway I'm wrapping up my taxes and guess what? I'm a whopping $1000 over the limit for applying for Earned Income Credit (which was always a big chunk of my tax credit in the past.) I could have taken a two-week vacation last year and ended up with more money now. Now instead of a tax refund I owe quite a lot. Exploding anger

I feel screwed. Hopefully after I file an extension and look for an accountant maybe I will learn that there's been some mistake but it really doesn't look that way Sad
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amother




Chartreuse


Post  Mon, Apr 16 2018, 12:48 am
Why would you owe tax? Does your workplace(s) have out of date w-4s?

Soon the EITC will be a distant memory for you. Your family income will exceed your current wages+credit.. just be patient.
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amother




Saddlebrown


Post  Mon, Apr 16 2018, 1:03 am
This is what I need an accountant for. I'm not sure if there was some w-4 issue. But I also owe a lot of self-employment tax that I just never worried about before because my refund was always SO much more than whatever I owed. I figured it would shrink a lot this year but because the added income was on a W2 I didn't realize that was going to take away the credits that used to offset my SE. So now I owe a few thousand. No biggie, I'm submitting a payment with the extension and will talk to an accountant when the seasonal dust settles - if it turns out to be a mistake then they'll just refund me the extra that I'm paying now.

I'm not so convinced my income is ever going to be enough to make this not matter.
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amother




Chartreuse


Post  Mon, Apr 16 2018, 1:11 am
amother wrote:
This is what I need an accountant for. I'm not sure if there was some w-4 issue. But I also owe a lot of self-employment tax that I just never worried about before because my refund was always SO much more than whatever I owed. I figured it would shrink a lot this year but because the added income was on a W2 I didn't realize that was going to take away the credits that used to offset my SE. So now I owe a few thousand. No biggie, I'm submitting a payment with the extension and will talk to an accountant when the seasonal dust settles - if it turns out to be a mistake then they'll just refund me the extra that I'm paying now.

I'm not so convinced my income is ever going to be enough to make this not matter.


Well if you have the cash for the payment sounds like you are doing ok.

FYI - your net self employment counts towards your eic calculation. Perhaps you overlooked some deductions?
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amother




Sienna


Post  Mon, Apr 16 2018, 1:15 am
amother wrote:
This is what I need an accountant for. I'm not sure if there was some w-4 issue. But I also owe a lot of self-employment tax that I just never worried about before because my refund was always SO much more than whatever I owed. I figured it would shrink a lot this year but because the added income was on a W2 I didn't realize that was going to take away the credits that used to offset my SE. So now I owe a few thousand. No biggie, I'm submitting a payment with the extension and will talk to an accountant when the seasonal dust settles - if it turns out to be a mistake then they'll just refund me the extra that I'm paying now.

I'm not so convinced my income is ever going to be enough to make this not matter.

It will. The first few years are the toughest. Stick it out and get over the hurdle. If you don't stick it out you'll get stuck cv when it really matters.
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amother




Natural


Post  Sun, May 27 2018, 7:27 am
I'm in that magical in between place too!
BH,I'm finally seeing the light!
Changed some things at work, more training plus small home business.
I work hard and have been for many years, I'm in m 40's and we're finally going to make enough to have the loss Gov't benefits and EIC not be devastating!
Was really hard but I'm already feeling really positive!
The first year of no programs and no tax refund, then finding out I actually had to pay was really really hard!
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