Discussion»Statements»Rosie's Corner» Anyone besides the wealthy believe they are better off with dumb don than they were before he rose from the fires below?
Well, I'm not. I rarely, if ever, owe money at tax time because I claim -0- for withholding. Last year, I had to pay $3700 to the feds, an amount which would not come to all the moneys I've had to pay over the last 55 years.
It is not a matter of what you had to pay in at the end of the year. It is a matter of what your tax due was LINE 16 on your 1040. (this is before any payroll taxes or other credits are applied) And the only way to compare is to take your taxable income (Line 11b from 1040) and put that amount from 2017 on a 2018 1040 and see if the amount in Line 16 increased or decreased. I did this and by tax due would have been over $1000 less.
Working three days a week has reduced my income from employment. I've had to take some required minimum distributions which made up for that. It may be that I didn't have taxes taken out of those RMDs. I have now asked to have 25% withheld. Hoepfully, that will help.
I guess the definition of "wealthy" is variable m2c. You and your husband own your own business and have employees and are not hurting. That can be considered wealthy by some standards. I'm going to ask. Thank you for your reply! :)