Anyone else who came from the TD side not get a refund this year? I’ve had one pretty much every year (I fine a pretty simple return) but this year since moving to Schwab I had to pay. Does Schwab traditionally not hold enough?
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getting a refund I think is the worst thing you can hope for which I am sure a few prior comments hinted at. What this means is that you are overpaying the government, who uses that money as they wish (like a free loan) as they have absolutely no requirement to pay you interest on over-payment.. under payment has the cards stacked exactly against you.
Now, if you owe, trust me, they will go after you like wildfire for interest in repaying them. The magic solution seems to be making sure you neither owe, nor receive at tax time.
This year’s bonus won’t affect last years taxes.
Your bonus is held at a higher rate. So in years past, when the bonus was larger or fully funded, it held more. This caused you to pay more in taxes from your bonus. This year where it was not fully funded, you paid less from your bonus, which normally offsets a lot of your tax bill. Smaller bonus = less taxes paid over the year = more money owed on April 15th.
Schwab sc--wed my taxes! lol, Jesus Christ… go see a tax professional!
Remember that 2026 is when the TCJA (the fleecing of the American taxpayer) rates reset so corporations (that are laying off) can have more money for executive bonuses.
Any change you make for 2024 should be reassessed in 2025 and 2026. You will likely owe more.
It is the new W4 form that is messing everything up. There are so many nuances surrounding a checkbox on the form that can result in someone owing large sums. Do some digging online and head advice from an expert because this new form is a disaster
I have 3 dependents, wife and two kids. Wife is stay at home mom. I declare I am single. I usually get a rwfind rhat ranges from 8K to 12K, depending on additional itemized deductions.
If you want a large refund, here’s a simple trick you can use, 100% legal. How does $50k refund sound? Interested, here’s what you do:
- Update your W4 so that you withhold just enough to cover taxes you will owe for regular pay, bonuses, investment income, cap gains etc, net of all credits, deductions and adjustments.
- Every quarter cut a check to the IRS for $12,500 for “additional estimated taxes” that you wouldn’t really owe. Use money from savings or money market accounts, emergency funds, or wherever you have extra cash stashed. Make four quarterly payments.
- Next year file your return. The amount you withheld from your pay should cover all taxes you actually owed. Those four quarterly $12.5k payments you made would all be extra, so claim that as your refund.
- Now the best part - wait for that $50k refund of your own money that you gave to the government, and then brag to your friends and relatives about the huge refund you scored on your taxes.
Think this is absurd? Why? That’s what a tax refund is. Getting your own money back that you let the government hold for you without paying you any interest.
I was claiming single, 0 dependents, withholding at the higher rate and paying an additional $1000 per pay period. I still owed taxes at the end of the year. I wondered the same - withholding enough?
I would rather put my taxes in a treasury so I am paid interest then pay them on April 15. Having to owe is better.
Update your withholding, that's on you.