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Personal Finance (Not Investing) • Should I contribute a small amount to a traditional 401k to reduce tax burden

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PLEASE PLEASE PLEASE do not say you paid $500 income tax.

Guessing it was more like $10,000+. Thinking you paid $500 is just a worthless statement. I am guessing you were were short $500 from witholding vs actual taxes due in April.

Okay - end of slam. Most Americans think that way. I get it. And if you got $700 back, they think they actually got some sort of windfall.

If you were only off by $500 - that is pretty good.
I did not say I paid $500 in income tax. I said I owed $500. Implying an additional $500.
What you actually did say was, “ I am not sure if the $500 is due to withholdings or not. I assume it is a tax liability.”.

The $500 was not your tax liability. Your tax liability was likely about $10k. Let’s assume exactly $10K and the $500 represents the portion of that liability not covered by the $9500 withheld by employer.

Statistics: Posted by LotsaGray — Thu Sep 05, 2024 11:47 pm — Replies 19 — Views 1490



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