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April 15th - Tax day

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  • HHuskyHHusky Member Posts: 18,949
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    See the USA in your Chevrolet, Fidel.
  • jecorneljecornel Member Posts: 9,516
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    HHusky said:

    jecornel said:

    HHusky said:

    “About” 480. Like I said.

    So what was the problem?
    No problem. Just trying to figure out how you’re paying more than half a million in taxes on a million dollars. That’s a talent no one else has.
    In the financial services industry, post recession and financial services law reform, bonus payment income has mandatory withholding requirements of about 50%. Thus, if your salary is $200k and your bonus is $800k, net monthly income will be about $40k to 45k. You settle up every April 15, but $40k or slightly more net monthly income in the financial services industry is about right.
    Thank you cirrohosis dawg.
  • HHuskyHHusky Member Posts: 18,949
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    HHusky said:

    jecornel said:

    HHusky said:

    “About” 480. Like I said.

    So what was the problem?
    No problem. Just trying to figure out how you’re paying more than half a million in taxes on a million dollars. That’s a talent no one else has.
    In the financial services industry, post recession and financial services law reform, bonus payment income has mandatory withholding requirements of about 50%. Thus, if your salary is $200k and your bonus is $800k, net monthly income will be about $40k to 45k. You settle up every April 15, but $40k or slightly more net monthly income in the financial services industry is about right.
    A mandatory withholding requirement that is 10% higher than the maximum tax rate? What law is that?
  • MisterEmMisterEm Member Posts: 6,685
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    edited April 2019
    jecornel said:

    Blu82 said:

    I would like to take this opportunity to thank President Trump for lowering the amount of taxes that are extorted from me annually.

    I'm not complaining this year......at all.
    Amen.

    Passive rental activity changed, took a small hit there. But both State and Federal wage income and business revenue went down, considerably.
  • CirrhosisDawgCirrhosisDawg Member Posts: 6,390
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    HHusky said:

    HHusky said:

    jecornel said:

    HHusky said:

    “About” 480. Like I said.

    So what was the problem?
    No problem. Just trying to figure out how you’re paying more than half a million in taxes on a million dollars. That’s a talent no one else has.
    In the financial services industry, post recession and financial services law reform, bonus payment income has mandatory withholding requirements of about 50%. Thus, if your salary is $200k and your bonus is $800k, net monthly income will be about $40k to 45k. You settle up every April 15, but $40k or slightly more net monthly income in the financial services industry is about right.
    A mandatory withholding requirement that is 10% higher than the maximum tax rate? What law is that?
    Sometime around 2010, investment banker bonuses started having mandatory nearly 50% withholding requirements on payouts. Not salary. Just bonuses. It was part of the crackdown on Wall Street and annual incentive payments. I can’t recall the specific bill now but it’s been a fact of life for about 10 years now.
  • HHuskyHHusky Member Posts: 18,949
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    HHusky said:

    HHusky said:

    jecornel said:

    HHusky said:

    “About” 480. Like I said.

    So what was the problem?
    No problem. Just trying to figure out how you’re paying more than half a million in taxes on a million dollars. That’s a talent no one else has.
    In the financial services industry, post recession and financial services law reform, bonus payment income has mandatory withholding requirements of about 50%. Thus, if your salary is $200k and your bonus is $800k, net monthly income will be about $40k to 45k. You settle up every April 15, but $40k or slightly more net monthly income in the financial services industry is about right.
    A mandatory withholding requirement that is 10% higher than the maximum tax rate? What law is that?
    Sometime around 2010, investment banker bonuses started having mandatory nearly 50% withholding requirements on payouts. Not salary. Just bonuses. It was part of the crackdown on Wall Street and annual incentive payments. I can’t recall the specific bill now but it’s been a fact of life for about 10 years now.
    I get that bonuses would have taxes withheld at the maximum tax rate. But the maximum tax rate is considerably lower than 50%.
  • MikeDamoneMikeDamone Member, Swaye's Wigwam Posts: 37,781
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    HHusky said:

    HHusky said:

    HHusky said:

    jecornel said:

    HHusky said:

    “About” 480. Like I said.

    So what was the problem?
    No problem. Just trying to figure out how you’re paying more than half a million in taxes on a million dollars. That’s a talent no one else has.
    In the financial services industry, post recession and financial services law reform, bonus payment income has mandatory withholding requirements of about 50%. Thus, if your salary is $200k and your bonus is $800k, net monthly income will be about $40k to 45k. You settle up every April 15, but $40k or slightly more net monthly income in the financial services industry is about right.
    A mandatory withholding requirement that is 10% higher than the maximum tax rate? What law is that?
    Sometime around 2010, investment banker bonuses started having mandatory nearly 50% withholding requirements on payouts. Not salary. Just bonuses. It was part of the crackdown on Wall Street and annual incentive payments. I can’t recall the specific bill now but it’s been a fact of life for about 10 years now.
    I get that bonuses would have taxes withheld at the maximum tax rate. But the maximum tax rate is considerably lower than 50%.
    https://taxmap.irs.gov/taxmap/pubs/p15-006.htm
  • HHuskyHHusky Member Posts: 18,949
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    Thanks Mike.

    If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 37% (or the highest rate of income tax for the year). Withhold using the 37% rate without regard to the employee's Form W-4.
  • CirrhosisDawgCirrhosisDawg Member Posts: 6,390
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    HHusky said:

    Thanks Mike.

    If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 37% (or the highest rate of income tax for the year). Withhold using the 37% rate without regard to the employee's Form W-4.

    And with social security, 401k deposits, employee portion of benefits, etc, the net cash to the employee from the bonus is about 50 pct. Much lower than a salary payment where your deductions apply. All of which substantiates the $40-$45k or so average monthly income on a gross $1 million income number (depending on the salary / bonus split and before you settle up with the IRS every April).
  • jecorneljecornel Member Posts: 9,516
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    HHusky said:

    Thanks Mike.

    If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 37% (or the highest rate of income tax for the year). Withhold using the 37% rate without regard to the employee's Form W-4.

    Alright then better for you. If you are barely surving on on 50 grand (52,500) a month then dial it back a little.

    If you could find a way to live on the 200k for a year you could make your remaining money work for you so that you are able to generate passive income. Then you could be rich.
  • creepycougcreepycoug Member Posts: 22,696
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    Let's just say that, after sending that check off to the Service, my mood darkened.

    The point you make is fair ... and compelling. The question that goes along with it is too: on what are we spending it, and is that ok? I've been on record for entitlement reform, and I stand by that. The other source of big sucking sounds from the fed on tax revenue is the military. It is here where my views diverge a bit from many conservatives.

    I think we spend too much on it. I also think in some respects it serves as a social program. It is a place for legions and legions of kids coming out of high school with no better options to land. That in and of itself is not a bad thing. But there is some social engineering going on there. I think a thorough review of graft and waste in what is the massive military budge should be thoroughly reviewed. Of course, it's a sacred cow to politicians, because who wants to make that promise during campaign time? It serves neither party's political platform.
  • YellowSnowYellowSnow Moderator, Swaye's Wigwam Posts: 33,792
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    Let's just say that, after sending that check off to the Service, my mood darkened.

    The point you make is fair ... and compelling. The question that goes along with it is too: on what are we spending it, and is that ok? I've been on record for entitlement reform, and I stand by that. The other source of big sucking sounds from the fed on tax revenue is the military. It is here where my views diverge a bit from many conservatives.

    I think we spend too much on it. I also think in some respects it serves as a social program. It is a place for legions and legions of kids coming out of high school with no better options to land. That in and of itself is not a bad thing. But there is some social engineering going on there. I think a thorough review of graft and waste in what is the massive military budge should be thoroughly reviewed. Of course, it's a sacred cow to politicians, because who wants to make that promise during campaign time? It serves neither party's political platform.


  • Pitchfork51Pitchfork51 Member Posts: 26,538
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    Just filed that sweet sweet extension
  • 2001400ex2001400ex Member Posts: 29,457
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    HHusky said:

    Thanks Mike.

    If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 37% (or the highest rate of income tax for the year). Withhold using the 37% rate without regard to the employee's Form W-4.

    And with social security, 401k deposits, employee portion of benefits, etc, the net cash to the employee from the bonus is about 50 pct. Much lower than a salary payment where your deductions apply. All of which substantiates the $40-$45k or so average monthly income on a gross $1 million income number (depending on the salary / bonus split and before you settle up with the IRS every April).
    SS is capped at $128k in wages and 401k is capped at $18k in contributions. So....I disagree on 50% when talking a million in compensation.
  • SFGbobSFGbob Member Posts: 31,919
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    I think we spend too much on it. I also think in some respects it serves as a social program. It is a place for legions and legions of kids coming out of high school with no better options to land. This speaks more about you then you'll ever realize.
  • SFGbobSFGbob Member Posts: 31,919
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    edited April 2019
    And to the extent that the Military has turned into a "Social Program" you can blame the Rats. It's not Conservatives pushing women in combat and Trannie rights in the Military.
  • CirrhosisDawgCirrhosisDawg Member Posts: 6,390
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    2001400ex said:

    HHusky said:

    Thanks Mike.

    If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 37% (or the highest rate of income tax for the year). Withhold using the 37% rate without regard to the employee's Form W-4.

    And with social security, 401k deposits, employee portion of benefits, etc, the net cash to the employee from the bonus is about 50 pct. Much lower than a salary payment where your deductions apply. All of which substantiates the $40-$45k or so average monthly income on a gross $1 million income number (depending on the salary / bonus split and before you settle up with the IRS every April).
    SS is capped at $128k in wages and 401k is capped at $18k in contributions. So....I disagree on 50% when talking a million in compensation.
    The 50 pct only concerned the income from bonus payments and the impact on net monthly cash flow. Bonuses are paid around February generally in the IB world. Before the caps are hit. As far as monthly income is concerned (and I used a $200k / $800k, salary bonus split for this example) $40k-$45k net monthly cash income, before settlement with the IRS in April, is reasonable, given the tax treatment of bonus income (especially if you live in California).
  • LebamDawgLebamDawg Member, Swaye's Wigwam Posts: 8,510
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    damn I had an appt with my accountant but cancelled it because of this thread - thanx guys
  • creepycougcreepycoug Member Posts: 22,696
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    SFGbob said:

    I think we spend too much on it. I also think in some respects it serves as a social program. It is a place for legions and legions of kids coming out of high school with no better options to land. This speaks more about you then you'll ever realize.

    Please amplify. I think you underestimate how much I'm able to realize.
  • creepycougcreepycoug Member Posts: 22,696
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    SFGbob said:

    And to the extent that the Military has turned into a "Social Program" you can blame the Rats. It's not Conservatives pushing women in combat and Trannie rights in the Military.

    Good rhetoric. It appears that I might have hit a sore spot here.

    It's not just those people who make it a social program, and I think you know that. A lot of straight men with nothing better to do, and no better prospects out of high school, look to the military as a default landing spot. It's the fucking truth dude. Like it or not. Everybody knows it.

    Do I value those people over fat, government cheese-eating baby factories sucking on the welfare dole? You betcha.

    But that doesn't change the facts. We have a massive military, and we still can't police the world with it. So why in the fuck bother? It's the isolationist in me. It is a huge chunk of the budget. If it makes you feel better to blame that, along with seemingly everything else that goes wrong in the world, on Democrats, have at it. I don't have the obsession with them you seem to, but I also don't feel too motivated to defend them either. Rat's fault? IDRGAF. Fine. It's their fault.

    The issue remains. We'd need to tax a lot less if we had military spending under more control.

    I suspect it's a social and cultural issue for most people, as 95% of things US citizens fight about tend to be.
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