Talking stocks, trading, and investing in general

cross22 · 2024-04-24T19:39:04-0700

I doubt you really mean high 5 figures still owed. That would be like 90k withholding shortage despite standard W4 withholding when 99% of income is from W2.

But yeah, extra withholding per paycheck is what I have been doing for many years. Also quarterly payments in case of large capital gains.

gettoasty · 2024-04-24T19:40:19-0700

certainly, taxes is not the end all be all. Such rich cash flow should be leveraged for other life pursuits much less worry about paying Uncle Sam. Alas, most people don’t think about it that way.

Same rationale for liking the idea of donation because of the deductions e.g., highly appreciated stocks up to 30%. But then turn around and be like those shares are no longer owned, hence, making the whole idea less desirable.

ValidusLA · 2024-04-24T19:40:46-0700

I just write quarterly prepayments and cry.

gettoasty · 2024-04-24T19:41:35-0700

cross22 said:
I doubt you really mean high 5 figures still owed. That would be like 90k withholding shortage despite standard W4 withholding when 99% of income is from W2.

But yeah, extra withholding per paycheck is what I have been doing for many years. Also quarterly payments in case of large capital gains.

How about 61k?

Thanks for your input!

brokencycle · 2024-04-24T19:48:10-0700

Makes >$600k+/yr; can't figure out how to increase withholding.

cross22 · 2024-04-24T19:53:56-0700

gettoasty said:
How about 61k?

Thanks for your input!

Yeah actually you are right, I was thinking that level of compensation won't be in salary (and thus W2) but bonuses, commissions, RSUs, etc all get included in the W2 so it's totally doable. That bill sucks, got to deduct the equivalent of an extra 5k a month from your paycheck.

Omega Male · 2024-04-25T04:39:28-0700

HRoi · 2024-04-25T04:46:58-0700

I don’t think there really is a ‘creative’ or ‘better’ way either, other than matching the timing of your payments to your cash inflows. For many, that is increasing your withholding.

I also massively underpay, but my bonus comes right before tax time, so writing one check when I file works best. I’m not very good company during that time, though.

Texasmade · 2024-04-25T07:04:46-0700

HRoi said:
I don’t think there really is a ‘creative’ or ‘better’ way either, other than matching the timing of your payments to your cash inflows. For many, that is increasing your withholding.

I also massively underpay, but my bonus comes right before tax time, so writing one check when I file works best. I’m not very good company during that time, though.

But you're always sh1tty company so how is tax time any different?

jbarwick · 2024-04-25T08:25:15-0700

All W-2 here except some cap gains at times. Just withhold more from your check. I withhold everything on mine so we don't have to adjust 2 W-4s as that is a cluster F

gettoasty · 2024-04-25T12:43:09-0700

My guess is that the alternative is moving up to the executive suite and getting the option for deferred comp.

otc · 2024-04-25T13:15:02-0700

Do you get bonuses taxed at the supplemental rate or as normal income?

Are you sure your W4s are right (especially after they changed how they work) and account for estimated bonus pay?

Seems like if you are 99% W2 income, it shouldn't be that far out of whack. It is usually interest/dividend/cap gains that throws it off.

HRoi · 2024-04-25T13:18:57-0700

Texasmade said:
But you're always sh1tty company so how is tax time any different?

Can’t really argue with you here

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