In the 6 years I’ve been here, every year when I go to file my taxes I usually get around a 20 grand tax refund. But this year I made a little more than I usually do in past years. I’m worried that I might actually owe more taxes and will have to pay the government instead of getting money back this year. I’m just curious, has anyone had to pay more taxes after filing, instead of getting a refund? BTW, I’m an English teacher, this should give you an idea of the tax range I’m in.
Like you, I used to get the refund, but I’ve been paying income tax every year for about 4 years now. Congratulations! You’ve reached the next bracket. Time to start thinking about ways to manage your money, i.e., places to “park” your money to avoid giving it to the government (tax-free investments like mutual funds and bonds, donations to charities, life insurance, etc.)
Welcome to the club. It’s a bit of a shock the first time, isn’t it?
I’ll know for sure next week when I go to file. But I’m pretty sure I’m at the higher bracket then last year. Every year I’ve been making more, and getting less back. I’m sure this year I’ve reached the point of no return. Can I ask, how much around you guys had to pay? 1k-5k or 5k+?
12 grand, once. I’d rather pay it myself than for someone else to have a free loan of my money for a year, though.