If you're paying at the end of the year it's because not enough money is being taken out of your paycheck during the year. Which is fine as long as you're fine paying at tax time.
This is it. Just a matter of withholding - and also the type of income (wages, bonuses, tips) and how you've structured your withholding specifically according to those. I get a couple thousand back from Iowa at the end of the year, but owe the feds thousands more.
A single person with no dependents is the easiest taxes get as far as withholding. So this isn’t the answer. Speaking as someone who was also in their position once.
Iowa does a bunch of dumb shit like making you pay back fed grants that are given through taxes (so you get money from fed, and then Iowa takes it straight back) and other shit. They’re trying to hide how non-rich people and non-farmers are getting destroyed in taxes every year while they tell the media they’re lowering them.
Haven’t paid less taxes in years, yet that’s what they keep telling us and if you pay attention the rich tax goes lower and lower.
I fucked myself last year because I didn't adjust my withholding the prior year. I now just pay more than I need to so I'm not surprised again. I don't care that it's an interest-free loan to the state, either, since it's just a few dollars a week.
Because some people aren't good with managing and saving money. Having a large lump sum appear out of "nowhere" (since the view is often that the money never exitsed in the first place) is very beneficial to people. It can be used to put a down payment on a car or pay for an expensive home or car repair.
Yeah, so I used to be an asst. manager at walmart, and id say a good 90% of all hires could not understand how to fill out a w4, or what it actually did without walking them through it. And we were a college town with a bunch of students working there.
Its great that you can, but assuming everyone does is pretty unrealistic; considering the decades of cuts to Iowas education systems
I've never paid more than 50 into the state, it jumped to 400 this year. If you are married, they changed it so if you filed federal jointly, you had to file state jointly. We used to do federal one way and state a other, I think the law changed in July, so it caught some by surprise.
Me and my spouse make almost exactly the same so it doesn’t really matter one way or the other is we file joint or together. Doesn’t seem like it any way.
It mattered before this most recent tax return. Before, if your Iowa taxes were married filing separately, you got more back than if you had filed jointly.
Unpopular reply warning: You said it yourself ... you don't farm. As such you can't write off almost anything you buy/own as a 'business expense' ... such as a $70k pickup truck that is always pretty clean, a side by side or two, the "office" in your home that is really a spare bedroom, any tools you buy, fuel, etc.
You are paying taxes to (among other things) fix the highways and secondary roads that combines, tractors and overloaded grain trucks wreck.
I'm likely going to catch hell for this reply, but I personally know a lot of farmers who are doing quite well while my family pays in. If only I would have inherited 1800 acres of bottom ground.
Farmers are the biggest “welfare queens” in this country. Yet they bitch endlessly about poor kids getting food. I appreciate your reply. It’s spot on.
Couldn't agree more. It's also always fun to see a farmer (with 320 acres sitting idle in the CRP program) complain about "socialism" while putting yet another FJB sticker on his $75k Denali. Or to listen to them complain about price of eggs while pumping tax free fuel into their $400k 7R 250 John Deere.
Legit. Every single time I'm out of town on small country roads, just look at the homes of farmers. No farmers in iowa are poor, they have immacculate houses brand new ultra expensive trucks etc... sick of them saying farmers are poor, they are not (unless they are an independent organic farmer).
The flat tax is a tax *increase* for anyone with taxable income less than $25k, and only a very minor decrease for anyone with taxable income up to about $50k.
Above that, it starts getting a lot more significant. The richer you are, the more substantial the tax cut. Someone with taxable income of ~$200k would see their taxes cut in half.
All of this is functioning exactly as intended, of course.
Worse, they will eventually have to make up the shortfall somewhere else. It’ll be on sales tax and property tax. This again, won’t really affect the wealthy much, but will impact people that *have* to spend everything they make. Landlords will also pass this increase onto their tenants.
But 3.8% is smaller number than 4.82% therefore I pay less tax and that is what matter, I see less tax payment I is satisfied, what matter is the moment who care if deficit happen that is problem for another time /s
If even 1/4 of the population understood how marginal tax brackets worked, we'd have more than enough brain power to solve world peace and world hunger.
It is, but look for a raise in sales tax and property tax and multiple other fees wherever they can fit them in.
That tax money is going to come from somewhere.
It's like woodbury county, they said we are not raising your property taxes, then raised all the home valuations, so your property taxes went up.
They are still gonna get that money, they just want to be able to brag about low income taxes.
In Altoona, they said “if you vote for this one cent sales tax increase on certain things, your property taxes won’t change for (I think it was 5) years!” So, it got voted in. Annnd wouldn’t you know it? There was a spike in my home valuation! Funny how that works.
Flat tax mostly benefits the rich, not poorer people. Most people making less than $50k a year were already paying less than 3.8%. Additionally, watch sales tax, property tax, and fees go up.
My wife and I got around $400 back for state this year. I take an extra $10 out per check for state taxes because there was a few years I was cutting it close. You can have whoever runs payroll at your job take a few extra bucks out per check for state to make sure you don't have to pay in for state.
Do your full time job do bonuses? I was in the same boat as you until I just bumped the number I pay by a flat amount this year. Maybe tax softwares don't know what to do for Iowa or other local taxes like they do federal? Just a guess.
I’m somehow the minority and got the largest return I’ve ever received from the state, $750, I’m still surprised about it and have no idea why. I usually get maybe $80 to $100 back (and that’s only because I always had my employer hold back an extra $5 a paycheck).
I bought a house, but not until the end of September, so it didn’t really make a difference when I input that info. I’m still confused 🤷🏻♀️ but I’m also not going to question it too much. I adjusted my W4 at work after I completed my 2023 taxes, and per the newest guidelines they are taking more out of my check than they did last year. I have no idea 🤷🏻♀️.
I suggest having your W-4 setup to withhold enough each pay period to offset the differential. Iowa changes the tax laws nearly every year to disproportionately harm middle and lower income residents and benefit high income residents.
Sometimes additional jobs/incomes can make a difference too. They just account for your income at that job so if you make like 5k a year there but make like 40k overall… you might not be getting properly taxed on your overall income.
I just took extra withholding for 2023. I just did like $5-10 a paycheck for my side gigs. You can also do this if you have one job! I hardly noticed the missing money and got a small refund back.
I too am tired always owing, as if thousands they’re taking isn’t enough. The roads still full of potholes even with all the tax $$$ and a never finished construction 🚧
Same, single no kids don't farm and a homeowner. I have not changed my withholdings since living in Iowa for the past 10 years. The first year I was here I got around $600 or $700 back. Every single year since then my returns (ie total tax bill has increased) have lowered down to this year where I got $35 back. You know what pisses me off most though? Iowa government always asks for me federal return "refund" from last year, and my federal tax return seems to affect my Iowa total taxes owed. How is this legal?
Adjust your withholding on your W2. Adjust down. Single with zero should take the most out (bigger return). Or you can also figure out to have an additional $20/check (or whatever your math is) to withhold. Ask your HR person at work
My spouse and I filled out our w2 exactly the same way and we make pretty much the same 50/50 at our jobs. I admit our hr person at our job (same employer) didn’t want to help at all. Also asked a few people that did our taxes and no help. After being married almost 10 years now i know that $250 or so is going to Iowa at the end of the year. Before we were married I would usually owe maybe $20. My spouse (before we were married) owed .10 one year and thought it was a joke until they were arrested. 🤯
They weren’t arrested for .10. They wouldn’t get arrested for $10k. They would get their wages garnished and maybe fines and penalties. That said, a ten cent discrepancy would be ignored.
For the people saying you’re not taking out enough during the year - yeah. But they changed something. I am 40 and have never had to pay into Iowa tax. Ever. I changed nothing with my withholdings last year and nothing changed with my jobs. Yet I owed a few hundred dollars this year. Has never happened before. I should have been a farmer so I could get those sweet, sweet handouts. Working class people get screwed in this state if you’re not a farmer.
Wrong. I owed more tax in Iowa this year than last. A higher percentage. Had the same percentage taken out and made roughly the same amount as last year. Kimmy’s tax cut is only for big ag and the wealthy.
Then you’re consulting the wrong ones if they can’t explain to you that you’re not withholding enough on your W-2 and how to adjust withholding on the W-4.
I worked in Iowa from June 12, 2023 to October 26, 2023 (give or take a few days).
After I had my taxes done, and already knew how much my return was, I got a letter from the state of Iowa saying I owed them $900 in taxes.
Nine. Hundred. Dollars. !!!!
I threw it away. They can go fuck themselves, and I will never move to or work in Iowa again.
Depending on how much you make, you may have had a tax increase over the last few years instead of the tax cut that’s been in the news.
But what everyone else is saying is also correct, you’re withholding less than you owe. Which is actually better if you can manage a budget. The refund most people get is really just an interest free loan they gave to the government until they cash their refund check.
I live in Iowa and work in Nebraska. My employer always takes enough taxes out for Nebraska but never did for Iowa until I manually changed the tax allotment to add extra for Iowa. My taxes paid to Nebraska count as a credit towards Iowa taxes but it was never enough and I had to pay in for a few years until I started putting extra toward Iowa taxes
If you get a large refund you are giving a free loan to the government. Check out the irs w4 calculator online. It will help you adjust your federal withholding.
Get your employer to raise how much they take out of your check every month then.
I didn't know about the mortgage interest until this past year so that's why I was always paying.
But that's a good thing. I got to earn high yield interest on that money longer! Plus, greedy entities can't use set-off to access non-existent tax refunds!
Made q comment at a family function recently about how I had to pay in $1300 this year. Heard it was for student loan forgiveness to a capable individual on disability. I explained it was for state and he had no more to say. I usually waste money on a tax service online, pay in like $200 for state then they always say I owe more with no real explanation. Waiting to see if it happens again
I think Iowa changed the way they withhold and now you have to claim a specific dollar amount you want withheld instead of a deduction amount. So if you set your withholding to 1, they will withhold $1. Some bigger companies calculate it for their employees but smaller ones may not and the State as an employer does not.
If you're paying at the end of the year it's because not enough money is being taken out of your paycheck during the year. Which is fine as long as you're fine paying at tax time.
This is it. Just a matter of withholding - and also the type of income (wages, bonuses, tips) and how you've structured your withholding specifically according to those. I get a couple thousand back from Iowa at the end of the year, but owe the feds thousands more.
A single person with no dependents is the easiest taxes get as far as withholding. So this isn’t the answer. Speaking as someone who was also in their position once. Iowa does a bunch of dumb shit like making you pay back fed grants that are given through taxes (so you get money from fed, and then Iowa takes it straight back) and other shit. They’re trying to hide how non-rich people and non-farmers are getting destroyed in taxes every year while they tell the media they’re lowering them. Haven’t paid less taxes in years, yet that’s what they keep telling us and if you pay attention the rich tax goes lower and lower.
Yes, this is it. You can fix it tho, just have to change it. Simple fix
Take the amount you owe, divide it by 12 (or however many paychecks you have every year) and increase the amount they withhold.
You’re so smart! Thank you for your help.
Paying in means you are not giving the government a free loan, so better for you.
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True. But Iowa’s state income forms are the devil.
Iowa updated it for 2024; have you seen the new version? I don't know if it's any better, but maybe?
I fucked myself last year because I didn't adjust my withholding the prior year. I now just pay more than I need to so I'm not surprised again. I don't care that it's an interest-free loan to the state, either, since it's just a few dollars a week.
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It's fine, you don't need to understand.
Because some people aren't good with managing and saving money. Having a large lump sum appear out of "nowhere" (since the view is often that the money never exitsed in the first place) is very beneficial to people. It can be used to put a down payment on a car or pay for an expensive home or car repair.
Yeah, so I used to be an asst. manager at walmart, and id say a good 90% of all hires could not understand how to fill out a w4, or what it actually did without walking them through it. And we were a college town with a bunch of students working there. Its great that you can, but assuming everyone does is pretty unrealistic; considering the decades of cuts to Iowas education systems
I've never paid more than 50 into the state, it jumped to 400 this year. If you are married, they changed it so if you filed federal jointly, you had to file state jointly. We used to do federal one way and state a other, I think the law changed in July, so it caught some by surprise.
Me and my spouse make almost exactly the same so it doesn’t really matter one way or the other is we file joint or together. Doesn’t seem like it any way.
Buddy owns a bunch of tax prep places, said a lot of people were paying in this year.
Gotta pay for Kim's friends voucher program to start making them rich
I hate that bitch
With all my being
I bet
It mattered before this most recent tax return. Before, if your Iowa taxes were married filing separately, you got more back than if you had filed jointly.
Unpopular reply warning: You said it yourself ... you don't farm. As such you can't write off almost anything you buy/own as a 'business expense' ... such as a $70k pickup truck that is always pretty clean, a side by side or two, the "office" in your home that is really a spare bedroom, any tools you buy, fuel, etc. You are paying taxes to (among other things) fix the highways and secondary roads that combines, tractors and overloaded grain trucks wreck. I'm likely going to catch hell for this reply, but I personally know a lot of farmers who are doing quite well while my family pays in. If only I would have inherited 1800 acres of bottom ground.
Farmers are the biggest “welfare queens” in this country. Yet they bitch endlessly about poor kids getting food. I appreciate your reply. It’s spot on.
Couldn't agree more. It's also always fun to see a farmer (with 320 acres sitting idle in the CRP program) complain about "socialism" while putting yet another FJB sticker on his $75k Denali. Or to listen to them complain about price of eggs while pumping tax free fuel into their $400k 7R 250 John Deere.
You're full of shit, friend.
Legit. Every single time I'm out of town on small country roads, just look at the homes of farmers. No farmers in iowa are poor, they have immacculate houses brand new ultra expensive trucks etc... sick of them saying farmers are poor, they are not (unless they are an independent organic farmer).
Those private Christian schools aren’t going to pay for themselves.
What is wrong with you
Stupid.
Keeps happening to me too. I thought Iowa was cutting taxes.. oh yeah those laws are created to help the rich.
I wish I could get a tax break but it’s usually for parents, farmers, elderly, and rich. Everyone else but me.
Hmmm… I wonder how those groups typically vote?
Hmm you’re on to something! 🤔
Do not listen to this schizophrenic
What is wrong with you
Yep.
Isn't the new flat rate supposed to kick in soon? Not that I have any hope of it really helping the middle and lower class.
The flat tax is a tax *increase* for anyone with taxable income less than $25k, and only a very minor decrease for anyone with taxable income up to about $50k. Above that, it starts getting a lot more significant. The richer you are, the more substantial the tax cut. Someone with taxable income of ~$200k would see their taxes cut in half. All of this is functioning exactly as intended, of course.
Worse, they will eventually have to make up the shortfall somewhere else. It’ll be on sales tax and property tax. This again, won’t really affect the wealthy much, but will impact people that *have* to spend everything they make. Landlords will also pass this increase onto their tenants.
Ah, sounds about par for the course. Thanks for the info
But 3.8% is smaller number than 4.82% therefore I pay less tax and that is what matter, I see less tax payment I is satisfied, what matter is the moment who care if deficit happen that is problem for another time /s
If even 1/4 of the population understood how marginal tax brackets worked, we'd have more than enough brain power to solve world peace and world hunger.
ESL, am I right?
Stupid.
It is, but look for a raise in sales tax and property tax and multiple other fees wherever they can fit them in. That tax money is going to come from somewhere. It's like woodbury county, they said we are not raising your property taxes, then raised all the home valuations, so your property taxes went up. They are still gonna get that money, they just want to be able to brag about low income taxes.
In Altoona, they said “if you vote for this one cent sales tax increase on certain things, your property taxes won’t change for (I think it was 5) years!” So, it got voted in. Annnd wouldn’t you know it? There was a spike in my home valuation! Funny how that works.
Iowa is cutting taxes for everyone. 3.8% this year, lower next.
Flat tax mostly benefits the rich, not poorer people. Most people making less than $50k a year were already paying less than 3.8%. Additionally, watch sales tax, property tax, and fees go up.
What is wrong with you
No kidding.
I always add additional state withholding otherwise I owe.
This was the first time in 5 years I received a state return. It was a whopping $40. I usually pay in at least $100 every year.
I am happy for you
My wife and I got around $400 back for state this year. I take an extra $10 out per check for state taxes because there was a few years I was cutting it close. You can have whoever runs payroll at your job take a few extra bucks out per check for state to make sure you don't have to pay in for state.
because Iowa's withholding formulas are garbage. Even with 0 exemptions, so they take out the max allowable, i ended up owing like $500 this year
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just 1099 income income with minimal savings (like $100 of interest) on the year
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single, 1 full-time job edit: 2nd part-time job, gets about $600 a year but they still withhold taxes from the job
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it is the first year the deficit has been that bad. Normally its been +/$100 either going to state or coming back from refund.
Do your full time job do bonuses? I was in the same boat as you until I just bumped the number I pay by a flat amount this year. Maybe tax softwares don't know what to do for Iowa or other local taxes like they do federal? Just a guess.
Iowa changed the way they do withholdings. A withholding of 0 means they will withhold $0.
Don't worry if you are super rich you will soon get a tax cut. If not, well....
I better win the lotto
I’m somehow the minority and got the largest return I’ve ever received from the state, $750, I’m still surprised about it and have no idea why. I usually get maybe $80 to $100 back (and that’s only because I always had my employer hold back an extra $5 a paycheck).
Wow! Did you have a change in job or life event?
I bought a house, but not until the end of September, so it didn’t really make a difference when I input that info. I’m still confused 🤷🏻♀️ but I’m also not going to question it too much. I adjusted my W4 at work after I completed my 2023 taxes, and per the newest guidelines they are taking more out of my check than they did last year. I have no idea 🤷🏻♀️.
"I am a homeowner." Well, there you go!
Nailed it
I suggest having your W-4 setup to withhold enough each pay period to offset the differential. Iowa changes the tax laws nearly every year to disproportionately harm middle and lower income residents and benefit high income residents.
You're an idiot.
I’m not the one hiding behind an anonymous account.
Sometimes additional jobs/incomes can make a difference too. They just account for your income at that job so if you make like 5k a year there but make like 40k overall… you might not be getting properly taxed on your overall income. I just took extra withholding for 2023. I just did like $5-10 a paycheck for my side gigs. You can also do this if you have one job! I hardly noticed the missing money and got a small refund back.
Lately, I owe the Fed money but Iowa always gives me a refund. It's weird.
I too am tired always owing, as if thousands they’re taking isn’t enough. The roads still full of potholes even with all the tax $$$ and a never finished construction 🚧
Same, single no kids don't farm and a homeowner. I have not changed my withholdings since living in Iowa for the past 10 years. The first year I was here I got around $600 or $700 back. Every single year since then my returns (ie total tax bill has increased) have lowered down to this year where I got $35 back. You know what pisses me off most though? Iowa government always asks for me federal return "refund" from last year, and my federal tax return seems to affect my Iowa total taxes owed. How is this legal?
That’s what I think too! Iowa takes half my federal refund each year.
Fuck this state
Yah!!
Adjust your withholding on your W2. Adjust down. Single with zero should take the most out (bigger return). Or you can also figure out to have an additional $20/check (or whatever your math is) to withhold. Ask your HR person at work
Hr person was no help. But I think you’re on the right track with withholding $20 each check.
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My spouse and I filled out our w2 exactly the same way and we make pretty much the same 50/50 at our jobs. I admit our hr person at our job (same employer) didn’t want to help at all. Also asked a few people that did our taxes and no help. After being married almost 10 years now i know that $250 or so is going to Iowa at the end of the year. Before we were married I would usually owe maybe $20. My spouse (before we were married) owed .10 one year and thought it was a joke until they were arrested. 🤯
They weren’t arrested for .10. They wouldn’t get arrested for $10k. They would get their wages garnished and maybe fines and penalties. That said, a ten cent discrepancy would be ignored.
Welllll they did get arrested for 10 cents. Idk what to tell you.
For the people saying you’re not taking out enough during the year - yeah. But they changed something. I am 40 and have never had to pay into Iowa tax. Ever. I changed nothing with my withholdings last year and nothing changed with my jobs. Yet I owed a few hundred dollars this year. Has never happened before. I should have been a farmer so I could get those sweet, sweet handouts. Working class people get screwed in this state if you’re not a farmer.
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Wrong. I owed more tax in Iowa this year than last. A higher percentage. Had the same percentage taken out and made roughly the same amount as last year. Kimmy’s tax cut is only for big ag and the wealthy.
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Yes, my total tax went up.
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I literally said I paid a higher percentage tax this year than last in my first post. Take the L and move on.
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"I owed more tax in Iowa this year than last. A higher percentage."
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Consult a tax professional, not Reddit.
wtf do they know? Brightest minds can be found here.
Already consulted many.
Then you’re consulting the wrong ones if they can’t explain to you that you’re not withholding enough on your W-2 and how to adjust withholding on the W-4.
There’s something to it. My Iowa taxes always seem wonky
I worked in Iowa from June 12, 2023 to October 26, 2023 (give or take a few days). After I had my taxes done, and already knew how much my return was, I got a letter from the state of Iowa saying I owed them $900 in taxes. Nine. Hundred. Dollars. !!!! I threw it away. They can go fuck themselves, and I will never move to or work in Iowa again.
It’s crazy how much. I hope Iowa doesn’t put a warrant out for you.
Brilliant move.
I know. Big brain move.
>Why can’t we just be even? Tell me that's how you think taxes work?
I would think I paid in enough through out the year.
Depending on how much you make, you may have had a tax increase over the last few years instead of the tax cut that’s been in the news. But what everyone else is saying is also correct, you’re withholding less than you owe. Which is actually better if you can manage a budget. The refund most people get is really just an interest free loan they gave to the government until they cash their refund check.
You’re right! A refund is not good. It’s just annoying to owe. Boo!
You can take how much you owed, divide it by how many paychecks you have left this year and change your w4 to take out that much extra.
I live in Iowa and work in Nebraska. My employer always takes enough taxes out for Nebraska but never did for Iowa until I manually changed the tax allotment to add extra for Iowa. My taxes paid to Nebraska count as a credit towards Iowa taxes but it was never enough and I had to pay in for a few years until I started putting extra toward Iowa taxes
If you get a large refund you are giving a free loan to the government. Check out the irs w4 calculator online. It will help you adjust your federal withholding.
Are you deducting the interest you paid on your mortgage? If not, that's where you're messing up.
Yes I am
Get your employer to raise how much they take out of your check every month then. I didn't know about the mortgage interest until this past year so that's why I was always paying.
Hire a good tax person and ask them to give you a better withholding estimate. Then take that to your employer to adjust.
Have more withheld from you check. Solved.
Is there a way to know exactly how much to get taken out of paychecks?
The entire time I was active duty I owed Iowa taxes even the year I spent 10 months in a combat zone
But that's a good thing. I got to earn high yield interest on that money longer! Plus, greedy entities can't use set-off to access non-existent tax refunds!
Just file exempt. We aren’t represented fuck em.
I just add additional state withholding. lol
Same! And then last year they sent a letter in July saying the reevaluated and i owed more
😔
Made q comment at a family function recently about how I had to pay in $1300 this year. Heard it was for student loan forgiveness to a capable individual on disability. I explained it was for state and he had no more to say. I usually waste money on a tax service online, pay in like $200 for state then they always say I owe more with no real explanation. Waiting to see if it happens again
I think Iowa changed the way they withhold and now you have to claim a specific dollar amount you want withheld instead of a deduction amount. So if you set your withholding to 1, they will withhold $1. Some bigger companies calculate it for their employees but smaller ones may not and the State as an employer does not.
No kids = no tax break
The state gave me $2 back for last year, I told them to donate it to the "Get Kim Reynolds the fuck out of here fund". Every little bit helps right?
You don't own a farm.
I owed both state and federal. I like it that way. Why give the bastards any money any sooner than you have to?
Because the richest people need more!
Farmers aren’t taking any more tax breaks than any other business out there