


Ask the community...
Anyone else feel like they're playing the world's worst lottery every time they check for updates? π°π€‘
LOL too real. Except in this lottery, we're just trying to get our own money back ππ
I heard a rumor that the IRS is super backed up this year because of all the stimulus payments and child tax credit stuff. Anyone know if that's true?
Yeah, I read an article about that. Apparently they're still processing returns from 2020 in some cases. It's a mess.
Anybody else think its ridiculous that WE have to jump through all these hoops? The IRS already has all our info, why make us dig it up again? π
It's all about control, man. Keep us busy with bureaucracy so we don't notice what's really going on π
All of these comments about withholding are spot on, but one more thing nobody mentioned: if you have any side income, investment income, or interest that isn't having taxes withheld, that would also contribute to owing at tax time. Even something as simple as a high-yield savings account or stock dividends can create tax liability that your W-4 withholding doesn't account for.
This is really important! I had a similar situation where I was withholding correctly from my main job, but completely forgot about the $15k I made from a side gig. No withholding on that money meant I owed several thousand at tax time despite having "extra" withhheld from my primary paycheck.
Thanks for asking this, I'm glad I'm not the only one (after decades of knowing exactly how I needed to fill out my W-4) that got a sudden surprise of OWING taxes for the first time in forever! It happened a couple of years back, then I found out about the new W4 (maybe it's βimproved?β), then I noticed β2020β on the form β so, apparently, it's taken a few years to start catching up. Taxes are a pain in the keister, I wish they'd stop βfixingβ them! LOL
You're absolutely right about the W-4 changes being the likely culprit here! The 2020 redesign completely eliminated the familiar "allowances" system that many of us relied on for decades. The concept of "single with 0 allowances" doesn't even exist anymore, which is why so many people are getting surprised. The new form tries to be more accurate by asking for specific dollar amounts instead of the old allowances, but it's created this weird transition period where conventional wisdom about withholding doesn't apply anymore. What worked reliably for years suddenly doesn't! For both you and the OP, it might be worth submitting a new W-4 with some additional withholding specified in Step 4(c). For someone at the OP's income level, they might need an extra $200-400 per paycheck withheld to avoid a surprise next year. The IRS has a tax withholding estimator on their website that's pretty helpful for figuring out the right amount. But yeah, I feel your pain - nothing like thinking you've got your taxes figured out only to have the rules change underneath you!
Omar Fawaz
Pro tip: call your local Taxpayer Advocate Service. They can sometimes help cut through the red tape and get things resolved faster.
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Chloe Anderson
β’This! π The TAS has been a lifesaver for me in the past.
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Diego Vargas
Plot twist: what if the notice is actually correct and you do owe money? π€ Might be worth double-checking your records before going through all the trouble of disputing it.
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Paolo Conti
β’Trust me, I've triple-checked everything. This is definitely their mistake.
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Diego Vargas
β’Fair enough! Just wanted to make sure. Good luck fighting the good fight! πͺ
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