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"Getting paid more money is for fools"
(lemmy.ml)
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this post was submitted on 20 Jun 2024
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shitposting
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As long as they filled out their w-4s right they wouldn't even have to worry. I've talked to too many people who put zero down and wonder why they owe every year.
I think you've got that backwards. My understanding is a 0 on your W2 means you're taking no deductions and you'll be taxed at max. Unless you're thinking of marking as exempt, which would be no tax taken out (then you'd owe at the end of the year).
But I could be wrong there. Reading this PDF from Vanderbilt makes me think I'm not, but taxes are intentionally as confusing as possible so I'm not going to say I'm confident. I inevitably end up owing the fed and paying it with my state return, so don't take my word for fact lol.
No w2 is the tax document, w4 is what you fill out with your employer. If you owe at the end of the year and that is your only job I would highly suggest going to your employer and updating your w4. You should be able to update your state as well. There is a tool on irs.gov called the Tax withholding estimator which can tell you exactly how much you should be taking out.
Lol, I did that and that's how I got where I am. Any other time I either get way too much back or I owe a shit ton. At least this way I still come out ahead.
Thanks for the clarification re W2/w4.
But isn’t that the whole point?? If I put zeros on my w4, why the fuck do I have to use another tool to calculate what I’ll be taxed, then add an additional withholding to make sure I don’t end up with a tax bill in April?
It’s insane.
Because putting 0 on your w4 when you know you have to pay taxes is a mistake. The tool is there to help you calculate. It's not difficult, you just take your last pay stub and plug in numbers then it does the rest. Could it be easier sure. But this is how you work with the tools we have.
Yeah, we’re talking past each other.
I understand how to do it, I just don’t think it makes sense that it’s necessary to do it that way.
Zero should equal “max taxes withheld” and the fact that it’s more complicated than that makes it feel intentionally complex (which I’m aware it is)