Help with taxes - Do I really owe this much?

[JMapleton]

You better go find that dude with a bow tie at H&R Block.

 

[dullard]

Yes, is there ANY reason not to max out your 401k if you make that much as a single person, no dependents? There's your REAL problem, OP.

Exactly. With a $17500 401k (or similar) contribution, the $21823 federal tax drops to $17,063 (15.2% effective federal tax rate). There is a $4760.13 savings right off the bat (plus add in employer contributions and stock market gains of probably ~$1500).

And he should be on an HSA plan if possible and if he is healthy. A $3300 HSA contribution on top of the $17500 401K would put his federal tax down as low as $16,238 (14.4% effective federal tax rate). If he did that in January of 2014 his HSA balance would likely be around $3800 today.

 

[rh71]

Figure I'd ask here instead of starting another tax post.

Trying to determine which tax bracket we fall in this time around, just for my own curiosity (we have an accountant that we'll use much later). Our W2s have:
1) Wages, tips, other comp
3) Social security wages
5) Medicare wages and tips
16) State wages, tips, etc.

all with slightly different figures. But then my wife's W2 also shows Gross Pay of over $14k more than any of the above categories.

So what numbers are we supposed to add together for household income for
1) tax purposes (determining our tax bracket)
2) if people ask us how much we make? (I figure this is the gross amt).

 

[dullard]

Figure I'd ask here instead of starting another tax post.

Trying to determine which tax bracket we fall in this time around, just for my own curiosity (we have an accountant that we'll use much later). Our W2s have:
1) Wages, tips, other comp
3) Social security wages
5) Medicare wages and tips
16) State wages, tips, etc.

all with slightly different figures. But then my wife's W2 also shows Gross Pay of over $14k more than any of the above categories.

So what numbers are we supposed to add together for household income for
1) tax purposes (determining our tax bracket)
2) if people ask us how much we make? (I figure this is the gross amt).

#1) Add up your's and your wife's W2 line #1 (Wages, tips, other comp). Then add in any other income (interest on savings for example). Then subtract your deductions. Assuming you have no other income and you are taking the standard deduction only, then you would subtract $20,300 from the total of your W2 line #1. Take that final number and look your bracket up at a website like this one: http://www.forbes.com/sites/kellyph...brackets-standard-deduction-amounts-and-more/

#2) Tell them that it is none of their business. Or, if they insist, I would use the gross pay amount.

 

[cabri]

1) Actual tax bracket is a physcologial ploy for political purposes. A number that gets changed on political whim

2) USe what ever number you want to brag or be ashamed of.

 

[jagec]

#2) Tell them that it is none of their business. Or, if they insist, I would use the gross pay amount.

Then add $100k to that number.