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WTF state taxes

Old 02-17-2012, 10:15 AM
  #16  
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Re: WTF state taxes

My MIL is a CPA & she does my taxes. Federal, we usually get ~$1K back. No state income tax, but we have over $3K local property taxes, most of which is for the school dist.
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Old 02-17-2012, 10:34 AM
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Re: WTF state taxes

Originally Posted by Camride View Post
I made $25k more last year than the year before, hence the extra state taxes. I don't think that put us in a new tax bracket though, we had just hit a new bracket the year before.
Well you made 25K extra, this is why you paying higher state taxes, I am not sure why this confuses you

Married, started a 401k last year (never had one previously). No change in the way we filed. The only things that changed were starting the 401k, getting a new job and making more money. Everything else was pretty much right on with the year before.

The thing is I don't really understand the state returns as well as Federal (since I've only done them a handful of times, vs Federal that I've been doing for ~13 years). TaxCut fills out all the State stuff automatically from your Federal return, so there wasn't much to do in that section. I just don't understand how we paid a significant chunk more to State but we get an identical return as last year.
Again, the refund confuses you, this is not some bonus money you get from the state, this is excess tax you paid throughout the year, this year you paid $2000 more than last year, and received $757 back, in actuality, this year you paid ~$1250 more state income tax than last year.
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Old 02-17-2012, 10:42 AM
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Re: WTF state taxes

State taxes are pretty straight forward. When did you move to your new job? I can only think that in 2010 you didn't have a full year of state taxable income and last year you did so it put you in a different tax bracket. Increasing your 401K will help lower your taxable income as well so you will pay less in taxes. Pull your last 2 returns, federal and state tax brackets and compare. I'm guessing it has to do with your job change and what was considered taxable when you did your taxes right after your job change.
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Old 02-17-2012, 12:35 PM
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Re: WTF state taxes

I don't mind state taxes... especially since with them I still live in one of the least taxed states.
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Old 02-17-2012, 12:52 PM
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Re: WTF state taxes

Originally Posted by PacMan View Post
Well you made 25K extra, this is why you paying higher state taxes, I am not sure why this confuses you



Again, the refund confuses you, this is not some bonus money you get from the state, this is excess tax you paid throughout the year, this year you paid $2000 more than last year, and received $757 back, in actuality, this year you paid ~$1250 more state income tax than last year.
Paying more taxes doesn't confuse me, that makes complete sense. I just think it's odd that my return is identical to last year for state. It seems like it should be a little different given the different earnings.

Originally Posted by ulakovic22 View Post
State taxes are pretty straight forward. When did you move to your new job? I can only think that in 2010 you didn't have a full year of state taxable income and last year you did so it put you in a different tax bracket. Increasing your 401K will help lower your taxable income as well so you will pay less in taxes. Pull your last 2 returns, federal and state tax brackets and compare. I'm guessing it has to do with your job change and what was considered taxable when you did your taxes right after your job change.
I changed jobs in August (no downtime between jobs) and 2010 I worked all year at one position. It's weird comparing it to 2010 because it's completely different amounts but the difference of what we paid vs what it says we actually owe both turn out to be $757. I've gone back over everything and it looks correct.

This year will be odd because my wife will stop working halfway through the year when we have our baby in July, then I will be our only income. So I imagine next year we'll get a refund and I'll have to adjust our withholdings a bit. This will be the first full year I'm doing a 401k (10% with 6% matched) as well.

The math works out, I just thought it was really weird that despite $25k of additional taxable income that we still got the same refund from state because we owed about $1k more from Federal.
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Old 02-17-2012, 12:58 PM
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Re: WTF state taxes

Originally Posted by Camride View Post
Paying more taxes doesn't confuse me, that makes complete sense. I just think it's odd that my return is identical to last year for state. It seems like it should be a little different given the different earnings.
but it's not identical you made 25K more and you contributed to 401K, I am not sure what you mean by "identical" ? the fact that the refund happened to be the same ? well it's not, this year you paid ~$1250 MORE than last year
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Old 02-17-2012, 01:04 PM
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Re: WTF state taxes

Originally Posted by PacMan View Post
but it's not identical you made 25K more and you contributed to 401K, I am not sure what you mean by "identical" ? the fact that the refund happened to be the same ? well it's not, this year you paid ~$1250 MORE than last year
I mean the refund amount is identical. Dude, I completely grasp that I paid more in taxes, you don't need to keep telling me that. I just though it was weird that, again, my refund amount for 2010 was $757 and for 2011 it is also $757.
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Old 02-17-2012, 01:05 PM
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Re: WTF state taxes

Originally Posted by Camride View Post
Paying more taxes doesn't confuse me, that makes complete sense. I just think it's odd that my return is identical to last year for state. It seems like it should be a little different given the different earnings.
I don't know NC taxes nor have I read much of the thread but a possible explanation is that your employers are pretty accurate at withholding your state taxes and you are getting very similar credits both years.
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Old 02-17-2012, 01:12 PM
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Re: WTF state taxes

Originally Posted by CatsTasteGood View Post
I don't know NC taxes nor have I read much of the thread but a possible explanation is that your employers are pretty accurate at withholding your state taxes and you are getting very similar credits both years.
Yeah, I'm sure this is probably the case. I mean the numbers add up, I just thought it was strange that despite my Federal amount changing by $1k (owed $869 in 2010 and $1879 in 2011) my state refund remained the same. It doesn't really matter as long as nothing is wrong (and I don't see anything to indicate that there is an issue). Like I mentioned everything will change this year so I don't have to worry about trying to adjust for anything at this point.
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Old 02-17-2012, 03:48 PM
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Re: WTF state taxes

Originally Posted by Camride View Post
I mean the refund amount is identical. Dude, I completely grasp that I paid more in taxes, you don't need to keep telling me that. I just though it was weird that, again, my refund amount for 2010 was $757 and for 2011 it is also $757.
pure coincidence move on

Last edited by PacMan; 02-17-2012 at 06:40 PM.
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Old 02-17-2012, 03:56 PM
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Re: WTF state taxes

Originally Posted by PacMan View Post
pure coinsurance move on
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Old 02-18-2012, 08:45 PM
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Re: WTF state taxes

Originally Posted by Camride View Post
Not worth the time/money for me at this point. Plus I'd rather keep doing this myself and learn.
You are so wrong on this.
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Old 02-19-2012, 01:38 AM
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Re: WTF state taxes

Originally Posted by Evilfrog View Post
You are so wrong on this.
Feel like explaining or siting some examples for me? I don't have a complicated return at this point. I'll drill down on everything for you.

For 2011 we had 4 W-2's, two from me and two from my wife. My two were from my two different jobs, pretty standard since I switched jobs in August. My wife gets two W-2's because her school is broken into a charter/private school, so she gets partial paychecks from each (which is a PITA). After that we have our standard mortgage deduction, our charity deduction for donating to our church and a very small handful of other deductions for some very small stuff (school supplies, vehicle tax, etc). We don't have anything else really, I just started my 401k with the new job so that didn't have much of a dent in my taxable income.

We don't have any investments at this point and there's really nothing else to put down. Maybe with some inventive tricks we could have gotten our taxable income down a little more, but I can't see it making much of a difference. And maybe a good accountant would make a difference, I'm not really sure. I've gone to H&R Block a couple times (when I thought things were getting more complicated) and I've always felt like that was a giant waste of money.
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Old 02-19-2012, 10:55 AM
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Re: WTF state taxes

Originally Posted by Camride View Post
Feel like explaining or siting some examples for me?
Find a trusted accounted. For a little bit of money they will make sure you get the most from your return. Not only that, they'll give you advise based on your life style and profession, on what to do throughout the year to save the most on taxes. As well as make sure you are keeping the records you need to keep.

In short, you pay a little bit of money, you get more back = worth it.


Originally Posted by Camride View Post
I've gone to H&R Block a couple times (when I thought things were getting more complicated) and I've always felt like that was a giant waste of money.
That's not an tax professional. That's a high school drop out reading off of the same check list you get with the tax software you purchase. You're correct in feeling that that is a giant waste of money. But a rep at hr block is to a tax professional like the guy running the grill at McDonald's is to a professional chef.
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Old 02-19-2012, 11:46 AM
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Re: WTF state taxes

I'm getting back a whopping $25 from federal though I did change my withholding from last year so I kept more per paycheck.

Seems like I should have gotten more back though...meh. A little back from the state.

Still though, frustrating to see my W-2 and see all the money stolen...I mean, taken out.

Yes yes yes...I enjoy having paved roads, police and yada yada yada.
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