I don't do my own taxes because I'm scared I'll screw them up. I looked at turbo tax one year and got as far as putting in my information before I gave up. I get a K1 and file single...it shouldn't be that tough and I'm ashamed of myself that I don't learn to do it myself...maybe next year.
But as I am starting to understand more I find myself confused on my tax returns this year. Maybe one of you smarter folks can explain.
On my return it says my adjusted gross income is 311k. My taxable income after all deductions is 259k. I owe the Feds 101k (thankfully overpaid on my quarterlies).
In reading about tax brackets I saw that earning 190k-413k = 46k + 33% of the amount over 190k.
So simple math says I should owe 46k + .33 x 69k = 69k
Where's that extra 32k coming from? As I read my return further I see I owe alternative minimum tax of 6k and Self employment tax of 24k so I guess I just answered my own question.
Any tricks to avoid all these taxes?
I have a 401k plan that allows Roth contributions so I max those out. Should I stop doing that to lower my taxable income by 18K? Would that even make a very big difference in what I owe?
Grrrrr....tax time. How I wish I could be smart like WCI and get down into a lower tax bracket!
But as I am starting to understand more I find myself confused on my tax returns this year. Maybe one of you smarter folks can explain.
On my return it says my adjusted gross income is 311k. My taxable income after all deductions is 259k. I owe the Feds 101k (thankfully overpaid on my quarterlies).
In reading about tax brackets I saw that earning 190k-413k = 46k + 33% of the amount over 190k.
So simple math says I should owe 46k + .33 x 69k = 69k
Where's that extra 32k coming from? As I read my return further I see I owe alternative minimum tax of 6k and Self employment tax of 24k so I guess I just answered my own question.
Any tricks to avoid all these taxes?
I have a 401k plan that allows Roth contributions so I max those out. Should I stop doing that to lower my taxable income by 18K? Would that even make a very big difference in what I owe?
Grrrrr....tax time. How I wish I could be smart like WCI and get down into a lower tax bracket!
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