Viewing a single comment thread. View all comments

Its-a-write-off t1_j6bv4gc wrote

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

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.

7

ichosetobehere t1_j6byd1q wrote

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

1

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.

5

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?

1

ichosetobehere t1_j6d66hw wrote

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

1

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.

2

ichosetobehere t1_j6d7lew wrote

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

1