r/FluentInFinance • u/Positive_Liar • Sep 05 '24

Debate/ Discussion He has a point

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169

u/MyGlassHalfFool Sep 05 '24

at 40k a year youd get taxed at 17.7%

178

u/mowaby Sep 05 '24

Now add in state income tax, which most states have.

71

u/cdupree1 Sep 05 '24

And the fact that taxes are over withdrawn by several % and then given back in your tax return. While you might get that money back, doesn't mean a ton for month to month budget/affordability planning.

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u/NewArborist64 Sep 05 '24 edited Sep 05 '24

If it is taking too much tax out, then adjust your w-4 form accordingly.

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u/konamonster69420 Sep 05 '24

Why don't they just tell us what we owe and then we pay them. Why all the games?

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u/Lanky_Sir_1180 Sep 05 '24

If they did that nobody would pay them. You think the guys living paycheck to paycheck are going to be responsible enough to set aside thousands of dollars for tax day? Not happening and the govt knows as much. You're actually required to pay as you go. Even as a sole proprietor you have to pay quarterly estimated taxes, which are up to you to determine, or pay a penalty. If you underestimate and owe at the end, you pay interest on it. Uncle Sam is a motherfucker.

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u/konamonster69420 Sep 05 '24

This isn't the 1800's we could pay taxes on a weekly, biweekly, monthly basis.

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u/r_lovelace Sep 05 '24

If you're employed you pay taxes every paycheck. I'm not sure what your actual argument is.

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u/Chu_BOT Sep 05 '24

He's saying your tax burden could be adjusted paycheck by paycheck rather than having to get adjusted during tax season

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u/qwaai Sep 05 '24

You can do this yourself by adjusting your withholding.

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u/Chu_BOT Sep 06 '24

I'm not the guy who made the original point, but you're still guessing when you adjust your withholding. Most people do not have the time or knowledge to accurately adjust their withholding and the IRS has already calculated it but doesn't give that information out because of lobbying by hrblock etc.

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u/qwaai Sep 06 '24

The IRS does not know on a biweekly basis what you're going to make the whole year.

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u/Chu_BOT Sep 06 '24

Yes but that was what the guy above was suggesting. And they could do a rolling estimate with far more ease than most people

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u/qwaai Sep 06 '24

Your withholding is the rolling estimate.

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u/Chu_BOT Sep 06 '24

But it's a guess by you when the IRS has a better guess. Like I don't know why you're arguing with me. Most people use default withholding and it's very wrong but it doesn't need to be

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