mmmmm...beer's Account Talk

[mmmmm...beer]

Hello Ladies and Gents... here we go. I've had a TSP account for roughly a little over 10 years now.

My contributions are as follows:

C = 40%

F = 40%

I = 20%

S = 20%

I'm 37 and mandatory retire at 57 with an option to retire at 50 if I want. I have a wife and 2 children. I currently have roughly $90k in my TSP account.

I've a question that's come up that I'm hoping you forumee's can lend some advice on. Before my family and I moved 3 years ago my had a pretty good job. In order for her to now be a domestic goddess I brought my TSP down from 15% down to 5%. I also brought my tax exemption status to Married Claiming/3. The past 3 years this has been going on we have been getting back about $3-4k in tax return a year.

This year I got a major raise. It just kicked in last check so it wasn't on the taxes for last year. We just did our taxes and the tax guy said... wow... with your new raise your DEFINITELY have to move that to Single Claiming/0 or your going to owe next year.

What I've been thinking is that maybe I leave it at Married Claiming/3 but then move my TSP back up to 10-15% thus essentially making my paycheck a bit closer to what it was before or maybe a little bit higher, but still not owing the gov taxes.

So... these these are my numbers thereabouts.

old salary

$88k salary, 5% pre-tax retirement deduction, married C/3 = $4k tax return (net paycheck roughly $2300 bi-weekly)

new salary (my first check at the new salary was still at married claiming 3 and was roughly $2800)

$108k salary, ? pre-tax retirement deduction, ? claiming ? = Don't care as long as we don't owe at the end of 2012.


Though I do want to sort of shelter as much as I can right now from taxes, I still would like to see some of the fruits of this promotion.

What do you think ladies and gents?

 

[malyla]

Welcome. I just went through this same exercise. Here is where to start

IRS Withholding Calculator

I changed my tsp from the max to 5% and used the calculator to calculate my 2012 tax refund for both a max tsp contribution and the 5% tep minimum. Gave me a good idea of what my withholdings should be so I have more money in my pocket during the year and a small tax refund for 2012.

Good Luck.

Hello Ladies and Gents... here we go. I've had a TSP account for roughly a little over 10 years now.

My contributions are as follows:

C = 40%

F = 40%

I = 20%

S = 20%

I'm 37 and mandatory retire at 57 with an option to retire at 50 if I want. I have a wife and 2 children. I currently have roughly $90k in my TSP account.

I've a question that's come up that I'm hoping you forumee's can lend some advice on. Before my family and I moved 3 years ago my had a pretty good job. In order for her to now be a domestic goddess I brought my TSP down from 15% down to 5%. I also brought my tax exemption status to Married Claiming/3. The past 3 years this has been going on we have been getting back about $3-4k in tax return a year.

This year I got a major raise. It just kicked in last check so it wasn't on the taxes for last year. We just did our taxes and the tax guy said... wow... with your new raise your DEFINITELY have to move that to Single Claiming/0 or your going to owe next year.

What I've been thinking is that maybe I leave it at Married Claiming/3 but then move my TSP back up to 10-15% thus essentially making my paycheck a bit closer to what it was before or maybe a little bit higher, but still not owing the gov taxes.

So... these these are my numbers thereabouts.

old salary

$88k salary, 5% pre-tax retirement deduction, married C/3 = $4k tax return (net paycheck roughly $2300 bi-weekly)

new salary (my first check at the new salary was still at married claiming 3 and was roughly $2800)

$108k salary, ? pre-tax retirement deduction, ? claiming ? = Don't care as long as we don't owe at the end of 2012.


Though I do want to sort of shelter as much as I can right now from taxes, I still would like to see some of the fruits of this promotion.

What do you think ladies and gents? View attachment 17594

 

[nasa1974]

mmmmm...beer, welcome aboard. This is a great place to learn.

A couple of suggestions; I would talk to a financial advisor to get a better handle on what to do not your tax preparer. Also if you can afford it take your pay raise and increase your TSP contribution. No one here will tell you what to do, just suggest ideas. I would expect a few more members will post in with some ideas. Again welcome aboard and good luck.

 

[nnuut]

Welcome to the Message Board mmmmm...beer, just stick around here and you will learn.
Best of luck
Norman

 

[Birchtree]

You may need more deductions - IRA, 529, sales taxes. Anything that will help reduce your AGI. I use margin interest which is still tax deductable. A home mortage would give you some deductions. Your TSP is designed to help reduce your AGI. You are limited on available deductions.