I was working on my taxes this weekend. I am so glad I saw this information on the payment methods. I would have hated to mess up my payment

Attached Images

IMG_4489.jpg (84.3 KB, 231 views)

Done with it. I hope the government enjoys the $378 I gave them.

I’m thinking that in the rare instance where one would be paying $100M to the IRS (and if so, somebody needs a better accountant) there’d be a minion who deals with that.

__________________
50 Years of DSOTM

Thanks for the heads up. That would have been embarrassing.

__________________
Music/Sports/Beer fan

How many pennies is that. They'd have to take them, right?

They might as well just forward the check to me - that's what I'm supposed to get back.

A Hundred Mill is way above my Pay Grade.
But when I see a Sign which says NO HUNDREDS,
I’ve been to announce- People, listen up to me!
I take all the Hundreds I can get!

__________________
NRA LIFE MEMBER

__________________
Music/Sports/Beer fan

Rusty I always took a few of my sons french fries as a tax lesson. He now does the same to his daughter.

Ruthie does the same to me at the drive-thru.

__________________
Music/Sports/Beer fan

My 2023 income was all independent consulting - I got paid each time I sent an invoice. So; of the taxable amount, 24% was Fed tax, 12.6% SocSec (both sides), 2.9% Medicare, and 7% state tax.

Still not moving to the libertarian paradise of Somalia.

After my late father retired from his regular job and the consulting contract from his old employer ran out, he tried operating his own consulting business. He said the government took so much from him it wasn't worth the effort and he became a complete retiree.

God, I wish I only had to pay $378.

Will they accept two checks for $50k?

__________________
213th FBINA

If I had owed anything this year could I have sent in a bag of Golden Dollars?

Same here...

It's painful watch it go out, but you can legally reduce your taxable income in a number of ways.

That's too bad they can't handle $100 mil or more. I have only one check left, so I'd rather owe it to them than cheat them out of it.

I don’t generally like to speak about money but here goes. I’ve just issued a check to the IRS for my 2023 taxes in the amount of $58 hundred dollars. That does not include four (4) estimated payments of $1,800.00 each. I am able to do that, but Hot Damn I don’t earn enough money yearly to continue to afford that.
Welcome to the "old Mid" class

__________________
Always Stay Strong!

I know that feeling well, but I prefer to "donate" quarterly than write one big check.... One advantage to living in PA is that all pension-liked income is not taxable by PA. They always look askance (sideways in US English!!) when I have to explain that the UK Pension system does not issue 1099R's. Uncle Sam understands the alternative tax form but PA tax people do not!! One of the advantages of paying enough in the UK before I came over in '68 that I could continue to pay into their system, and it makes old friends in the UK a "trifle upset" that my wife (US born) collects a spouse's pension from the UK as well! Dave_n

Someone once told me paying a lot in tax is a good problem to have.

My company relocated when I was 54. Everyone that was 55 got a full pension with enhancements to age 62. I refused....not going to move to godforsaking XX. (just my opinion)

I consulted to all of their competitors until retirement age. Being successful is having a talent that is needed, plus setting your fee high enough that you can live comfortable, while still not price gouging.

^^^^^^This x25.

We have the same accountant?

__________________
Sure you did

Earning a lot more while paying less taxes is even a better problem to have.

Funny thing, I told the government the same thing regarding my refund check.

Kevin

__________________
Unshared knowledge is wasted.

Just finished my taxes tonight. Owed a little more than I thought I would so I will need to write a check. No refund this year. Couldn't do my taxes without TurboTax.

Yeah, I had that limit problem last year.:-)

I remember Bill & Hill scolding us about something about your fair share of taxes & how they needed them.

I just wanna say God bless my tax accountant of the last four decades. At 76, he has had the effrontery () to tell me he is retiring this year, that this year is his last, and that he wanted to enjoy the time remaining to him.

I'll miss him, for sure. That's a lotta years of good advice, good protection.

Kinda like losing the guy who's been riding shotgun on the stage coach through hostile territory all these years.

I'll need to find a new guy, young and fast, to ride beside me.

I have not paid taxes in 14 years, and I intend to keep it that way.

I would feel a lot better about the taxes I pay if our "representatives" were a lot more responsible (and adherent to the Constitution) in how they spent it.

Unfortunately, being DINK's, we had few options other than deferring taxes in any way possible. We used tax free bonds for after tax investments.

Now that we are retired, we are working to pull it out of those investments while remaining in the lowest tax brackets possible.
Tax evasion is illegal, tax avoidance is the American way.

As someone else mentioned, I too am not going to do any more consulting for all the reasons they mentioned.

This one really helps for consultants:

Simplified Employee Pension (SEP)

Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $66,000 for 2023 ($61,000 for 2022, $58,000 for 2021, $57,000 for 2020 and $56,000 for 2019).

Establish the plan with a simple one-page form:

-complete Form 5305-SEP, Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement PDF, or
an IRS-approved “prototype SEP plan” offered by many mutual funds, banks and other financial institutions, and by plan administration companies; and

-open a SEP-IRA through a bank or other financial institution.
Set up the SEP plan for a year as late as the due date (including extensions) of your income tax return for that year.

Retirement Plans for Self-Employed People | Internal Revenue Service

I was laid off and forced to take possession of some options that I had earned that triggered some tax liability. While not in danger of the $1million payment problem, it was significant.

After consulting with 2 CPA's, an Enrolled Agent and another Tax Attorney, all in an attempt to keep more of the money, they all agreed - pay the government their tax, sleep soundly and be happy.

Yes, yes and more yes.
In my case I have a Solo 401k but the end result is that you get to keep more of your money.

I bought my wife a new car this year. To pay for it I emptied out my very first IRA, that was started when they first became available. I was a young Engineer at the time in a low tax bracket. No company contributions at that time.

Wholly Mackerel! Do I owe!! With diligent preparations and good pensions, I'm now in a higher tax bracket. Knowing what I now know I would have put it in a CD and paid the taxes back then.

SEP is good if you are doing long term consulting as a F/T endeavor. I was consulting on a very limited basis after retiring two years ago. I wasn't really looking at it as anything other than extra spending money, so I am just letting it go.

Many people fail to take into consideration tax implications of deferred accounts in retirement. Remember that 30% of that balance is for the Big Guy.

Indeed. It is deferral, not exemption. When I start to draw down those accounts I'll be in a much lower bracket.

I wish I could be like Grandpa about taxes from the movie You Can't Take It With You.


"We got to pay government employees, don't we?".

"Not with MY money.".

__________________
KM
S&WCA 3110 S&WHF 625