Good afternoon all.
I just have a couple quick points and questions around income tax.
For the previous 10 years, ive averaged around 45-70k income.
This year I found a new job, that pays 135k + or - a little based on commissions.
When i started crunching numbers for my taxes it blew my mind.
If i file jointly with my wife we are on the hook for 46,000 in taxes
if I file single (if i was still) id pay 31,000 or so in federal income tax.
So doing the math, just because i make more money now, i will end up paying over $18,000 of that to the federal government. How is this possibly right?
What is more frightening, is taking a look at my paystubs, im only having around 850 per check taken out, and 1250 or so on commission draw weeks.
Its certainly not going to add up, and im claiming 0.
What in the world can i do to prevent a massive pay in come tax time .
Besides the obvious (get more deductions, and have more taken out)
EDIT : and the other thing is, people are telling us to file jointly, yet, the total fed tax paid if we do so is considerably less than we would pay together. so why would i want to file jointly? the deductions arent that fantastic