Can anyone that knows much about tax prep tell me if this look like it's probably accurate?

[HeXen]

Using premium tax software. According to what I already paid in taxes plus what I owe, it appears as if I'm paying about 49% in taxes? ...isn't that a bit high for my income?

 

[Ken g6]

Does that include state tax? It could happen that way. Or maybe it includes a penalty for owing too much tax?

Are you not putting any money away for retirement or health savings? You still could, you know.

 

[kranky]

That looks wrong. With a taxable income of $125,371, your tax due would be either around $24,300 if single or around $19,500 if married filing jointly.

However... look at your tax return - is anything happening on the lines between Taxable Income and Total Tax? That's the only thing I can think of that would make the Tax You Owe greater than either of the numbers I showed above.

 

[KB]

Using premium tax software. According to what I already paid in taxes plus what I owe, it appears as if I'm paying about 49% in taxes? ...isn't that a bit high for my income?

View attachment 2991

Not even Billionaires pay 50%. The highest tax bracket is like 36%. Try some other software. Its either buggy or too confusing for you to use.

 

[IronWing]

Using premium tax software. According to what I already paid in taxes plus what I owe, it appears as if I'm paying about 49% in taxes? ...isn't that a bit high for my income?

View attachment 2991

According to what you've posted here, you're paying 39.4%, not 49%. I think you added what you've paid to the total tax which includes what you've already paid so you're double counting. Edit: Looking at your numbers again, I have no idea how you got 49%.

According to the tax calculation in IRS instructions for 2018, page 79, filing jointly (I assume joint because you show a $24,000 deduction), your tax should be $19.460.62. That is, $125,371 x 0.22 - $8,121.00.

 

[s0me0nesmind1]

Yeah that total tax number is 100% incorrect based on the information in front of us. No question.

Try a different software.... Or hell, you're taking the standard deduction just pencil it in on the form 1040EZ

 

[Ken g6]

Or hell, you're taking the standard deduction just pencil it in on the form 1040EZ

Shows what you know: There is no 1040EZ this year! There is a postcard sized form, though, and it sounds like it might work in this case.

 

[ImpulsE69]

That calculation is off somewhere. You only owe 28835 based on 23% (which simply based on what you showed and paid already means you'd have money coming back barring any other differences)

 

[highland145]

..

 

[brianmanahan]

nah, there's no way that can be right. i was pretty close to that and owed less than half the owed amount it's showing.

also, what kind of software shows a negative zero?

 

[highland145]

also, what kind of software shows a negative zero?

Using premium tax software.

 

[bbhaag]

Good lord look at that annual income. 149K puts you in the top 15% of income earners. It's only fair that you pay your due in taxes.

 

[brianmanahan]

Good lord look at that annual income. 149K puts you in the top 15% of income earners. It's only fair that you pay your due in taxes.

that's not much higher than ATOT minimum wage (currently 106$k)

 

[highland145]

Good lord look at that annual income. 149K puts you in the top 15% of income earners. It's only fair that you pay your due in taxes.

Agree. Let's fuck a guy for 47%. The socialist way.

lolololll my response has been "adjusted"...c**t and it was replaced by "wise and beautiful woman "...I Am Triggered Here.

 

[s0me0nesmind1]

Shows what you know: There is no 1040EZ this year! There is a postcard sized form, though, and it sounds like it might work in this case.

Lol sorry I don't check form names. Also I keep forgetting with our president everything has to be slapped with a new sticker for his personal branding.

 

[Sonikku]

No way in hell that's accurate. You're an ATOT poster. You must have misplaced a decimal when you entered in your income.

 

[snoopy7548]

You either did something wrong or sold a shitload of stocks.

 

[dave_the_nerd]

You either did something wrong or sold a shitload of stocks.

That rate would be even lower.

 

[s0me0nesmind1]

I think someone else might have mentioned this - but just to set the record straight the problem is simply that your tax paid amount is a negative. Change it to a positive and it will work correctly.

$29,822 (Your negative tax amount paid)
+$28,991 (the amount it says you owe)
___________________
$58,813 total tax amount. This matches your odd result.

It's as if the system thinks you owe taxes from last year or something since the amount is negative.

What it should be doing is

$29,822 (Tax Paid for the year / withheld)
-$28,991
__________
$831 refund


The software is being stupid because it is calculating the "Tax you owe" not based on the year, but also based on your withheld. It should be showing the baseline of how much total tax to pay by calculating with the taxable income, since it's RIGHT BELOW taxable income.

 

[KentState]

Something is off. For example, we had $49k withheld and will get back around $10k so that puts the federal tax liability at $39k for us.

 

[Stopsignhank]

What does the software company say?

 

[Fern]

It's too high; it's wrong.

I get your income tax at $19,461 (before any penalties that may apply).

I get your effective (average) tax rate at 46.9%

Does your software come with "diagnostics'. This will be a list of possible 'errors' and/or overrides etc.

Fern

 

[jayzds]

As stated above...you should get back around $10,360.

I also get the $19,461 of tax.

19,461-29,822 = 10,361 refund...

Assuming that this is wage income & withholding with nothing else to adjust this?

 

[gill77]

Are you subject to self employment tax?

 

[s0me0nesmind1]

The problem is right in front of you guys (as I stated).

The $28k balance due is because his tax withheld amount (-$29,822) is a negative amount. So it thinks he owes tax from last year AND this year. Thus it adds the two numbers.

$29,822 (Your negative tax amount paid)
+$28,991 (the amount it says you owe for the year)
___________________
$58,813 total tax amount. This matches your odd result displayed in the screenshot.

Now as far as if that $28,991 is correct - probably isn't - but maybe it's tossing in penalties/interest in that figure for the negative withholding I suspect.