Be careful about that. The People’s Republic of Maryland charges a large penalty if you don’t withhold enough, as determined by your final tax bill.
Be careful about that. The People’s Republic of Maryland charges a large penalty if you don’t withhold enough, as determined by your final tax bill.
The feds also charge a penalty if your withholding is not high enough. If you do not pay 90% of your taxes in withholding throughout the year there is a penalty. In our case it is a couple hundred dollars. I gladly pay it to have use of MY money throughout the year, then write a fairly large check to the govt at the end of the year.
I am blessed to have a fairly good income, as does hubby. HOwever, we are at the point where even with 2 and possibly 3 kids in college (no financial aid to you) I am looking at cutting back. At our marginal tax rate, with the alternative minimum tax and rollbacks on the deductions, it is not worth the effort to work harder. Any extra I make goes over 50% to the govt. And we don’t make THAT much, trust me.
Many of the people I support through my taxes live better than I do. I think the thing that really hurts was when our kids were young. I worked part time and hubby and I did handsprings with our schedules so we did not have to use day care. The money I made was about what we paid in taxes - in other words, if we could have kept the money hubby made, I would not have had to work at all. Instead, I had to work to pay for other peoples kids.
I can tell you among those of us hit by the tax rates, almost all are looking for a way to reduce their earnings and cut back. It just isn’t worth it anymore
/rant off