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ichosetobehere t1_j6btaxi wrote

Reply to comment by Alcohooligan in Owe almost 10k in federal income taxes? by [deleted]

I don't think so. Do you put in an additional withholding amount? and how are you supposed to know what that should be until you get your first paycheck and assume something is wrong? single, no dependents. a very vanilla case

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Its-a-write-off t1_j6bv4gc wrote

What you are seeing is not normal. With 1 job, the default withholding you should not owe 10k. As to why this did happen, no progress can be made on figuring that out with the info from box 1 and 2 of your w2 form.

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ichosetobehere t1_j6byd1q wrote

Itemized deductions got me down to 5k, still a bit concerned for next year. ~200 and 37

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IAmAcidRain t1_j6ca7e4 wrote

Box 1 on your W2 is the total amount of income you received from your employer. Box 2 is the amount of federal tax withheld by your employer.

So you are telling me you earned a total of $200 for the entire year and paid only a total of $38 in federal tax, and somehow owe $10k? I can't even begin to express how wrong your entire situation sounds.

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Its-a-write-off t1_j6d28fs wrote

Yes, your w4 is not set up correctly for your situation. You need to fix it. How much of your pay is supplemental, bonus, rsu pay?

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ichosetobehere t1_j6d66hw wrote

Just under half is a bonus. Do they withhold less than normal for those?

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Its-a-write-off t1_j6d6qw8 wrote

Yes, off payroll pay can't use the algorithm, so they withhold the most common tax bracket, 22%. That's not enough for you, since you are high income. So the dollars over 100k total were seeing under withholding from 2% to 10%

At your income, running the withholding calculator at least twice a year is needed to keep on top of withholding.

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ichosetobehere t1_j6d7lew wrote

Thank you, this was the response I was looking for and clears that up :)

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