2022 Tax Return vs. 2023 Tax Return
2022 Tax Return vs. 2023 Tax Return
Wow....what a difference a year makes
My 2022 federal tax [refund] was $3084
My 2023 federal tax [refund] was $654
What about you????
OP has corrected the above in subsequent posts, this edit corrects his original post.
Moderator Pops1860
My 2022 federal tax [refund] was $3084
My 2023 federal tax [refund] was $654
What about you????
OP has corrected the above in subsequent posts, this edit corrects his original post.
Moderator Pops1860
Re: 2022 Tax Return vs. 2023 Tax Return
Do you mean the refund amount? The tax "return" is the form itself, nothing to do with whether you still need to pay tax or get a refund.
Also, so many different variables involved that comparisons of refund amounts are almost entirely meaningless. If you're trying to figure out why you're getting back less this year, then you need to provide a lot more info.
Also, so many different variables involved that comparisons of refund amounts are almost entirely meaningless. If you're trying to figure out why you're getting back less this year, then you need to provide a lot more info.
Re: 2022 Tax Return vs. 2023 Tax Return
Congrats on giving the government a smaller interest free loan. (I assume these numbers are your refund.)
How does total tax paid compare?
How does total tax paid compare?
Re: 2022 Tax Return vs. 2023 Tax Return
You should be comparing your total tax liability (meaningful), not your refund amounts (meaningless).
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Re: 2022 Tax Return vs. 2023 Tax Return
Are you stating that's what you underpaid and owe the IRS, or that's the refund you're getting because over-withheld ?
Since you put a happy face in there, I'm guessing it's a refund of the money you could have had throughout the year had your withholding been correct, and likely not a under-withholding which probably would have generated additional penalty.Are you asking for help in figuring out what your withholding should have been?
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Re: 2022 Tax Return vs. 2023 Tax Return
I won't file my 2023 return until about October 2024.
Sorry, I'm bad!
Sorry, I'm bad!
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Re: 2022 Tax Return vs. 2023 Tax Return
It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
Glad you were able to get yours done early!
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Re: 2022 Tax Return vs. 2023 Tax Return
Simplicity has its virtues. I'm with LiveSoft. I probably won't even meet with my accountant until the 2nd week of October. It's a rush just to figure out which states I will need to file extensions for.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Re: 2022 Tax Return vs. 2023 Tax Return
bg5 wrote: ↑Fri Jan 27, 2023 8:12 am Wow....what a difference a year makes
Here is the info below about my refund and I did change anything. Now I am happy that my return is minimal since I dont want the government borrowing my cash for free but I was surprised it was this big a difference.
My 2022 federal tax return was $3084
My 2023 federal tax return was $654
What about you????
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Re: 2022 Tax Return vs. 2023 Tax Return
I will never understand why anyone would give the Federal Government a $3084 loan.
Re: 2022 Tax Return vs. 2023 Tax Return
One more time - refund?bg5 wrote: ↑Fri Jan 27, 2023 8:41 ambg5 wrote: ↑Fri Jan 27, 2023 8:12 am Wow....what a difference a year makes
Here is the info below about my refund and I did change anything. Now I am happy that my return is minimal since I dont want the government borrowing my cash for free but I was surprised it was this big a difference.
My 2022 federal tax return was $3084
My 2023 federal tax return was $654
What about you????
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Re: 2022 Tax Return vs. 2023 Tax Return
In 2022 that turned out well for those folks that would have invested the $3084 in the stock market OR a bond fund (that's a loan!).Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
Buying a Treasury note, bill, or bond is a loan to the Federal Government. Just sayin'!
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Re: 2022 Tax Return vs. 2023 Tax Return
I gave gov't a much bigger one because I didn't know that 401K plan withdrawals have a mandatory 20% withholding rate.Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
I won't make that mistake again!
Re: 2022 Tax Return vs. 2023 Tax Return
That’s what OP says above. Do you question that? OTOH OP also says that he “did change anything “!samsoes wrote: ↑Fri Jan 27, 2023 8:51 amOne more time - refund?bg5 wrote: ↑Fri Jan 27, 2023 8:41 ambg5 wrote: ↑Fri Jan 27, 2023 8:12 am Wow....what a difference a year makes
Here is the info below about my refund and I did change anything. Now I am happy that my return is minimal since I dont want the government borrowing my cash for free but I was surprised it was this big a difference.
My 2022 federal tax return was $3084
My 2023 federal tax return was $654
What about you????
Re: 2022 Tax Return vs. 2023 Tax Return
You can choose not to have federal income tax withheld if the distributions are not eligible rollover distributions.retiringwhen wrote: ↑Fri Jan 27, 2023 8:55 amI gave gov't a much bigger one because I didn't know that 401K plan withdrawals have a mandatory 20% withholding rate.
I won't make that mistake again!
“ Your retirement plan distributions are subject to federal income tax withholding. However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. (These are distributions, described later under Rollovers, that are eligible for rollover treatment but aren't paid directly to another qualified retirement plan or to a traditional IRA.) If you choose not to have tax withheld or if you don't have enough tax withheld, you may have to make estimated tax payments.”
https://www.irs.gov/publications/p575#e ... 1000226745
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Re: 2022 Tax Return vs. 2023 Tax Return
Not at my MegCorp's 401K, it is 20% or you don't take the distribution, at least for in-service over 59.5 withdrawals. Maybe once I retire fully, I may be able to set my own rate, I can't test that yet.HueyLD wrote: ↑Fri Jan 27, 2023 9:27 amYou can choose not to have federal income tax withheld if the distributions are not eligible rollover distributions.retiringwhen wrote: ↑Fri Jan 27, 2023 8:55 amI gave gov't a much bigger one because I didn't know that 401K plan withdrawals have a mandatory 20% withholding rate.
I won't make that mistake again!
“ Your retirement plan distributions are subject to federal income tax withholding. However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. (These are distributions, described later under Rollovers, that are eligible for rollover treatment but aren't paid directly to another qualified retirement plan or to a traditional IRA.) If you choose not to have tax withheld or if you don't have enough tax withheld, you may have to make estimated tax payments.”
https://www.irs.gov/publications/p575#e ... 1000226745
The plan can do what they do, which btw, the plan administrator is Vanguard, the plan sponsor is a standard MegaCorp.
Re: 2022 Tax Return vs. 2023 Tax Return
I'm getting a refund because I was paying estimated taxes at the safe harbor rate (2021 taxes), 2021 there were large capital gains distributions on some of the bond funds I hold in taxable and 2022 there were no such capital gains distributions, so taxes are much lower.
While I'm missing some 1099s, they are for mutual funds and I know how much the funds distributed in 2022, so it's easy to estimate taxes. I used this information to adjust fourth quarter estimated taxes, due January 17, otherwise I'd have paid too much by a much larger margin. I didn't have the necessary information until after paying the September estimated tax installment.
While I'm missing some 1099s, they are for mutual funds and I know how much the funds distributed in 2022, so it's easy to estimate taxes. I used this information to adjust fourth quarter estimated taxes, due January 17, otherwise I'd have paid too much by a much larger margin. I didn't have the necessary information until after paying the September estimated tax installment.
Re: 2022 Tax Return vs. 2023 Tax Return
Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
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Re: 2022 Tax Return vs. 2023 Tax Return
Not everyone has a predictable income stream.Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
Re: 2022 Tax Return vs. 2023 Tax Return
I paid $200 in 2022. In 2023, my estimated refund is ~$4100 between federal and state. Most of that is because my annual bonus was taxed at the 37% level when I am only in the 24% bracket.
Re: 2022 Tax Return vs. 2023 Tax Return
If your income went up then perhaps your tax withholdings also went up?bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
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Re: 2022 Tax Return vs. 2023 Tax Return
Compare your tax returns line by line and see where the numbers diverge.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
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Re: 2022 Tax Return vs. 2023 Tax Return
That would make sense - especially if that income was in the 32% tax bracket.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
Re: 2022 Tax Return vs. 2023 Tax Return
I think you did not read the key phrase of “eligible rollover distributions.retiringwhen wrote: ↑Fri Jan 27, 2023 9:44 amNot at my MegCorp's 401K, it is 20% or you don't take the distribution, at least for in-service over 59.5 withdrawals. Maybe once I retire fully, I may be able to set my own rate, I can't test that yet.HueyLD wrote: ↑Fri Jan 27, 2023 9:27 amYou can choose not to have federal income tax withheld if the distributions are not eligible rollover distributions.retiringwhen wrote: ↑Fri Jan 27, 2023 8:55 amI gave gov't a much bigger one because I didn't know that 401K plan withdrawals have a mandatory 20% withholding rate.
I won't make that mistake again!
“ Your retirement plan distributions are subject to federal income tax withholding. However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. (These are distributions, described later under Rollovers, that are eligible for rollover treatment but aren't paid directly to another qualified retirement plan or to a traditional IRA.) If you choose not to have tax withheld or if you don't have enough tax withheld, you may have to make estimated tax payments.”
https://www.irs.gov/publications/p575#e ... 1000226745
The plan can do what they do, which btw, the plan administrator is Vanguard, the plan sponsor is a standard MegaCorp.
Distributions that can be rolled over are called "eligible rollover distributions." And the following distributions cannot be rolled over and thus are eligible for zero tax withholding.
“ Retirement plans: You can roll over all or part of any distribution of your retirement plan account except:
Required minimum distributions,
Loans treated as a distribution,
Hardship distributions,
Distributions of excess contributions and related earnings,
A distribution that is one of a series of substantially equal payments,
Withdrawals electing out of automatic contribution arrangements,
Distributions to pay for accident, health or life insurance,
Dividends on employer securities, or
S corporation allocations treated as deemed distributions.”
https://www.irs.gov/retirement-plans/pl ... tributions
Re: 2022 Tax Return vs. 2023 Tax Return
Same here.
My taxable military retirement income only went by the COLA, just about everything else stayed the same in terms of income from the year before. W/H rates stayed the same at Married/0.
After starting to enter info into, showing a big deficit, I made two $600 tax payments in Dec and Jan.
News articles saying people would be in for a shock this year are spot on.
Cheers,
Ray
My taxable military retirement income only went by the COLA, just about everything else stayed the same in terms of income from the year before. W/H rates stayed the same at Married/0.
After starting to enter info into, showing a big deficit, I made two $600 tax payments in Dec and Jan.
News articles saying people would be in for a shock this year are spot on.
Cheers,
Ray
Retired Military in Tulsa, 100% VA, MFJ, Age 66, Spouse 61, 2023 Effective Fed Tax Rate 12.17%, OK State 0%
Re: 2022 Tax Return vs. 2023 Tax Return
When is the earliest date when all the tax forms/info are available for tax filing for typical taxpayers?TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
Re: 2022 Tax Return vs. 2023 Tax Return
I always wait until I have the 1099s before filing but I have a really good idea what's going to be on them before they arrive - I can usually do an early version of my taxes at the beginning of January and get pretty close to the final result.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
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Re: 2022 Tax Return vs. 2023 Tax Return
+1SmileyFace wrote: ↑Fri Jan 27, 2023 10:09 amNot everyone has a predictable income stream.Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
Re: 2022 Tax Return vs. 2023 Tax Return
I also agree it doesn't make sense...but the mind is a funny thing!Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
For some people:
* It's essentially forced savings they would otherwise likely spend
* Feels like free money when they get it and gives them a high
* Until more recently, depending upon what they were doing with that money (besides spending it)...they didn't miss out on much (low interest rates).
Re: 2022 Tax Return vs. 2023 Tax Return
I can understand end of feb or April buy why wait until October?White Coat Investor wrote: ↑Fri Jan 27, 2023 8:33 amSimplicity has its virtues. I'm with LiveSoft. I probably won't even meet with my accountant until the 2nd week of October. It's a rush just to figure out which states I will need to file extensions for.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939
Re: 2022 Tax Return vs. 2023 Tax Return
The child tax credit in 2022 is a maximum of $2000 per child. The child tax credit in 2021 was $3000 or $3600 per child, depending on their age. Not to mention that 17 years olds were eligible in 2021 but not 2022.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
Even if you received advanced child tax credit payments, you were only paid part of the credit increase. This is going to be a big change. I suspect most people with minor children will be asking the same question.
There were other Covid era benefits that also reverted to prior tax law that could have reduced your refund. And the higher income might have as well, especially if any of it was from sources that did not withhold. So, those with cash type savings who were receiving near 0% interest in 2021, might have some tax generating interest in 2022 with no increase in withholding.
Re: 2022 Tax Return vs. 2023 Tax Return
I think the child tax credits are a likely cause.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
https://www.irs.gov/newsroom/get-ready- ... ng-in-2023
"Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021."
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Re: 2022 Tax Return vs. 2023 Tax Return
As several have pointed out, comparing refunds is meaningless. Lay returns side by side and it should be obvious what changed.
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Re: 2022 Tax Return vs. 2023 Tax Return
+2OpenMinded1 wrote: ↑Fri Jan 27, 2023 10:55 am+1SmileyFace wrote: ↑Fri Jan 27, 2023 10:09 amNot everyone has a predictable income stream.Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
I don't mind paying 5% too much in order to avoid being required to pay estimated taxes every quarter. In fact I do so intentionally to ward off any surprises.
That being said, I'm batting 1000 lately having my taxes done by "professionals" in our new location. Last year (2021 taxes) the owner of the tax prep company who has been in business for 20 years said I owed 27k in capital gains, which I didn't, and had to prove it to her.
This year (filed yesterday) we went to a nationally known tax prep company and were the clients of an EA (Enrolled Agent) who made multiple mistakes on the return which would have cost us over $1,700 unless I caught them, which I did. Unfortunately, I found another one today that will cost us another $266 when we file the amended return after we get the IRS refund direct deposited.
My daughter is a CPA on the opposite coast and is gobsmacked at my stories of incompetence here, and has offered (demanded) to do our federal taxes next year and beyond. I guess the whining worked.
BTW, In an effort at self defense I found a good SS income tax calculator that does all the incremental math for you, in case you are interested.
https://www.covisum.com/resources/taxab ... calculator
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Re: 2022 Tax Return vs. 2023 Tax Return
I'm in my mid-sixties, and have only used a tax preparer once, and that was about 30 years ago. They made a serious error, which luckily I caught before filing the return. The item that the preparer made a mistake on wasn't very complex at all.vested1 wrote: ↑Fri Jan 27, 2023 11:46 am+2OpenMinded1 wrote: ↑Fri Jan 27, 2023 10:55 am+1SmileyFace wrote: ↑Fri Jan 27, 2023 10:09 amNot everyone has a predictable income stream.Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
I don't mind paying 5% too much in order to avoid being required to pay estimated taxes every quarter. In fact I do so intentionally to ward off any surprises.
That being said, I'm batting 1000 lately having my taxes done by "professionals" in our new location. Last year (2021 taxes) the owner of the tax prep company who has been in business for 20 years said I owed 27k in capital gains, which I didn't, and had to prove it to her.
This year (filed yesterday) we went to a nationally known tax prep company and were the clients of an EA (Enrolled Agent) who made multiple mistakes on the return which would have cost us over $1,700 unless I caught them, which I did. Unfortunately, I found another one today that will cost us another $266 when we file the amended return after we get the IRS refund direct deposited.
My daughter is a CPA on the opposite coast and is gobsmacked at my stories of incompetence here, and has offered (demanded) to do our federal taxes next year and beyond. I guess the whining worked.
BTW, In an effort at self defense I found a good SS income tax calculator that does all the incremental math for you, in case you are interested.
https://www.covisum.com/resources/taxab ... calculator
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Re: 2022 Tax Return vs. 2023 Tax Return
Same here. I usually wait until February ends to be safe.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
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Re: 2022 Tax Return vs. 2023 Tax Return
If you don't know why there was such a big difference from one year to the next, you probably need to check your (or your tax ppreparer's) work.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
Re: 2022 Tax Return vs. 2023 Tax Return
As Livesoft pointed out, everyone who owns Treasury bonds loans money to the government. Perhaps you mean a no-interest loan?invest4 wrote: ↑Fri Jan 27, 2023 11:04 amI also agree it doesn't make sense...but the mind is a funny thing!Murdock7591 wrote: ↑Fri Jan 27, 2023 8:49 am I will never understand why anyone would give the Federal Government a $3084 loan.
But what about that $3,084 loan. The return of a money market fund last year was 1.5%. If the withholding was spread across the year, your average return was 0.75%.
0.75% on $3,084 is $23.
Some people obsess over the most trivial things. The mind is a funny thing.
Re: 2022 Tax Return vs. 2023 Tax Return
you are correct....the child tax credit (I have 3 kids) was the big thing that had a big impact.retiredjg wrote: ↑Fri Jan 27, 2023 11:33 amI think the child tax credits are a likely cause.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
https://www.irs.gov/newsroom/get-ready- ... ng-in-2023
"Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021."
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Re: 2022 Tax Return vs. 2023 Tax Return
I think my last K-1 came in August last year. Accountants get busy too. So since I quit doing the returns myself, it seems to be a big rush the second week of April to get extensions in and best guesses on payments made and then a big rush in October to finish it all.ray.james wrote: ↑Fri Jan 27, 2023 11:14 amI can understand end of feb or April buy why wait until October?White Coat Investor wrote: ↑Fri Jan 27, 2023 8:33 amSimplicity has its virtues. I'm with LiveSoft. I probably won't even meet with my accountant until the 2nd week of October. It's a rush just to figure out which states I will need to file extensions for.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Re: 2022 Tax Return vs. 2023 Tax Return
The other aspect of this is that you might want to wait until tax software has gone through multiple update cycles.homebuyer6426 wrote: ↑Fri Jan 27, 2023 12:01 pmSame here. I usually wait until February ends to be safe.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
Re: 2022 Tax Return vs. 2023 Tax Return
Ah I see. I know K1's can be delayed quite a bit due not that late!White Coat Investor wrote: ↑Fri Jan 27, 2023 1:23 pmI think my last K-1 came in August last year. Accountants get busy too. So since I quit doing the returns myself, it seems to be a big rush the second week of April to get extensions in and best guesses on payments made and then a big rush in October to finish it all.ray.james wrote: ↑Fri Jan 27, 2023 11:14 amI can understand end of feb or April buy why wait until October?White Coat Investor wrote: ↑Fri Jan 27, 2023 8:33 amSimplicity has its virtues. I'm with LiveSoft. I probably won't even meet with my accountant until the 2nd week of October. It's a rush just to figure out which states I will need to file extensions for.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939
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Re: 2022 Tax Return vs. 2023 Tax Return
One of the prices you pay to have some "non-bogleheadish" investments. The benefit of course was making 18% in 2022 when everything else in my portfolio lost 10-30%. This year I get to find out if that drop was just delayed for private real estate investments due to not being marked to market as quickly as public REITs. I suspect it will be somewhat but hopefully not entirely.ray.james wrote: ↑Fri Jan 27, 2023 1:44 pmAh I see. I know K1's can be delayed quite a bit due not that late!White Coat Investor wrote: ↑Fri Jan 27, 2023 1:23 pmI think my last K-1 came in August last year. Accountants get busy too. So since I quit doing the returns myself, it seems to be a big rush the second week of April to get extensions in and best guesses on payments made and then a big rush in October to finish it all.ray.james wrote: ↑Fri Jan 27, 2023 11:14 amI can understand end of feb or April buy why wait until October?White Coat Investor wrote: ↑Fri Jan 27, 2023 8:33 amSimplicity has its virtues. I'm with LiveSoft. I probably won't even meet with my accountant until the 2nd week of October. It's a rush just to figure out which states I will need to file extensions for.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Re: 2022 Tax Return vs. 2023 Tax Return
Meh... For those of us taking a standard deduction, with only W2 and simple interest income there's not much to be concerned about.tibbitts wrote: ↑Fri Jan 27, 2023 1:23 pmThe other aspect of this is that you might want to wait until tax software has gone through multiple update cycles.homebuyer6426 wrote: ↑Fri Jan 27, 2023 12:01 pmSame here. I usually wait until February ends to be safe.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
I had 1 W-2, a couple 1099-INT's, a 1099-DIV from a money market fund, and a 1099-R from a roth conversion. All pretty simple stuff, not much to worry about changing.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: 2022 Tax Return vs. 2023 Tax Return
One aspect I've tended to have to wait for is for the tax software to properly import the 1099 information correctly.JoMoney wrote: ↑Sat Jan 28, 2023 11:36 amMeh... For those of us taking a standard deduction, with only W2 and simple interest income there's not much to be concerned about.tibbitts wrote: ↑Fri Jan 27, 2023 1:23 pmThe other aspect of this is that you might want to wait until tax software has gone through multiple update cycles.homebuyer6426 wrote: ↑Fri Jan 27, 2023 12:01 pmSame here. I usually wait until February ends to be safe.TwstdSista wrote: ↑Fri Jan 27, 2023 8:22 am It always amazes me when people can do their taxes this early - I'm still waiting on six 1099 forms from 3 different banks/brokerages!
Glad you were able to get yours done early!
I had 1 W-2, a couple 1099-INT's, a 1099-DIV from a money market fund, and a 1099-R from a roth conversion. All pretty simple stuff, not much to worry about changing.
Re: 2022 Tax Return vs. 2023 Tax Return
Is the IRS accepting 2023 returns already? I'm still waiting on my 2022 1099's.
Outside a dog, a book is man's best friend, inside a dog, it's too dark to read - Groucho
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Re: 2022 Tax Return vs. 2023 Tax Return
2021 was a really strange tax year. Child tax credit was increased, childcare credit increased, EIC rules loosened, etc. Plus the stims and advance CTC.bg5 wrote: ↑Fri Jan 27, 2023 10:08 am Thanks for all the replies....the reason I made this post is I did not make any changes from 2022 to 2023 so I am trying to figure out why there is such a difference. I am wondering because of the tax credits of covid for my 3 kids possibly?
The only major change in our household is our income went up about $8000 in total so maybe thats it?
IT WAS ALL TEMPORARY COVID RELIEF.
I wouldn't compare 2022 to that year. It was freaking crazy.
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Re: 2022 Tax Return vs. 2023 Tax Return
My 2023 federal tax [refund] was $654
I won't know my 2023 federal tax liability until February 2024 at the earliest. How do you know what your 2023 federal tax refund was/will be?Is the IRS accepting 2023 returns already? I'm still waiting on my 2022 1099's.
De gustibus non disputandum est
Re: 2022 Tax Return vs. 2023 Tax Return
In 2022 I received a $100 refund. Didn't change anything and owe $2600 this year. Salary was maybe $10,000 higher, but the real culprit was no $3,000 child tax credit as my kid turned 17 last year. I thought the child credit was good until age 18. Oops.