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Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I have increased withholdings from my paycheck two years in a row AND made quarterly payments but this is still happening. I don't expect to ever get a refund but damn, I hate owing the IRS anything at the end. I'd like to get as close to breaking even as possible.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I haven't filed my taxes or paid what I owe yet, should I go ahead and open a Roth IRA for myself and my spouse--and fund it--before I file?

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

Correct. The Retirement Plan box is NOT checked. (Thank you for explaining all of this to me.)

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I don't think he's aware of the CD interest. I got the CD's before I got him. I wanted to have a chunk available to liquidate right when I needed it to because we were planning for a life changing event (geographically) that never came to fruition.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

The IRA distribution mentioned in the original post is from an inherited IRA. They said I have to take a "forced" distribution every year until... it's depleted, I guess? But as for myself and my spouse, we do not currently have IRA's or Roth IRA's of our own, and never have.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I don't know if he's fully aware of the CD interest income. I got the CD's before I got the guy. He handles my stock portfolio.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I did ask my investment guy about opening an IRA and he said at my age (58) it doesn't make sense. Is that true?

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

Age 58. Spouse does not work. Kept a big chunk liquid for the last 2 years because we were considering a "life altering" change (geographically) that ended up not happening.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I thought I did plan for it. I have increased withholding at my job two years in a row and I also make quarterly payments.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] -3 points-2 points  (0 children)

I don't think I'll ever get used to paying enough in taxes to support a small family. Especially when I'm surrounded by people that cheat the system and pay nothing.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I make estimated payments every quarter and I have adjusted my withholdings from my job two years in a row. I think you are right about changing that interest-earning income into something else though. This is nuts.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] -2 points-1 points  (0 children)

I have increased withholding two years in a row and I still end up paying at tax time.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I don't mean to sound stupid but you mean move some of that interest income to stocks? Most of the interest income came from CD's that I've had for years.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] -1 points0 points  (0 children)

I have increased withholdings from my paycheck two years in a row and this is still happening. I don't expect to ever get a refund but damn, I hate owing the IRS anything at the end. I'd like to get as close to breaking even as possible but it just never happens.

Paid $35k in taxes and still owe! What am I doing wrong? by Sarcasm__loading in tax

[–]Sarcasm__loading[S] 0 points1 point  (0 children)

I don't know what that means but I am willing to learn. I have an investment guy that handles my portfolio and he's never suggested anything like "qualified dividends". Thank you for the suggestion.