I need some money help.
March 17, 2021 1:51 PM Subscribe
Do you know of a good tax accountant in Portland, OR?
Ever since the Trump tax cut and its resultant change to the withholding tables, my wife and I can't seem to get our taxes right. After a second straight year of owing an uncomfortably large (for us) amount of money - and after we made a bunch of changes in 2020 to adjust our withholding/deductions properly, only to owe almost exactly as much as we did for 2019 - we realize it's time to talk to a tax professional about how to set up our tax situation, so we're closer to zero being the number we end up with in the "Owed/refund" column when we do our taxes in March.
We don't need a financial planner - we've got a pretty good handle on long-term/retirement stuff. And we don't need day-to-day spending/saving advice. We just need help with how to get our taxes set up so we don't spend all of April going WHY ARE WE SO DUMB ABOUT THIS STUFF.
I'd rather work with a BIPOC/woman owned business if possible, but I don't want to cold-call if I can avoid it. I'd rather have someone tell me "we've used this (person/company) and they were awesome". Which is why I'm asking here.
We're in Portland, OR; we'd rather work with someone in the Portland city limits (preferably west of 205) unless someone in a suburb is absolutely stellar and worth the trip.
Ever since the Trump tax cut and its resultant change to the withholding tables, my wife and I can't seem to get our taxes right. After a second straight year of owing an uncomfortably large (for us) amount of money - and after we made a bunch of changes in 2020 to adjust our withholding/deductions properly, only to owe almost exactly as much as we did for 2019 - we realize it's time to talk to a tax professional about how to set up our tax situation, so we're closer to zero being the number we end up with in the "Owed/refund" column when we do our taxes in March.
We don't need a financial planner - we've got a pretty good handle on long-term/retirement stuff. And we don't need day-to-day spending/saving advice. We just need help with how to get our taxes set up so we don't spend all of April going WHY ARE WE SO DUMB ABOUT THIS STUFF.
I'd rather work with a BIPOC/woman owned business if possible, but I don't want to cold-call if I can avoid it. I'd rather have someone tell me "we've used this (person/company) and they were awesome". Which is why I'm asking here.
We're in Portland, OR; we'd rather work with someone in the Portland city limits (preferably west of 205) unless someone in a suburb is absolutely stellar and worth the trip.
See DMs.
posted by firstdaffodils at 2:04 PM on March 17, 2021
posted by firstdaffodils at 2:04 PM on March 17, 2021
I am not a Portland-based user of a tax accountant, but I do the payroll at my work and wow I have been hearing a LOT of people's tax problems in the last few weeks. SO MANY. Forgive me if this is dumb/obvious stuff, but it has been brand new information to every single person I've talked with so far (despite my emailing the IRS withholding calculator out to the company several times a year...) And if you're still looking for 1:1 help, maybe this will at least help someone else coming to this question.
So. The IRS has a withholding calculator that you put your numbers into and it will tell you exactly what to enter on your W-4. What I like most about this calculator is that on the last page there's actually a slider bar where it lets you change the amount you want back in a refund. You cheat it up for a bigger refund, it's dynamic and updates what you should input on your W-4 to get closest to achieving this. It's important that you & your spouse both work through the calculator together and both update your withholding documents at work.
If your number one goal is OWE NOTHING, when you fill out your W-4, set your withholding at the single rate, do not put in any dependents. This isn't lying to the IRS about your dependents, it's asking your employer's payroll to withhold at the maximum amount for your income. The rest will shake out when you complete your return. I'm not familiar with Oregon's state withholding form, but at a quick glance it looks like it's still following the format that the Federal W-4 followed prior to 2020, where you can claim exemptions and allowances. Just don't claim any exemptions or allowances.
(Also, if you're someone who gets bonuses throughout the year, ask your payroll person how they set up withholding on bonuses. Withholding on bonuses is generally set up separate from your regular withholding schedule. Payroll people are fallible, they might be fucking up. Just ask what the withholding rate is on any income you get other than your regular salary.)
One thing people often don't think about is other sources of income. You just did your tax return so you should have a pretty good idea what those are. Any 1099-DIVs or -INTs you got? Sure, interest rates on savings accounts are shit right now, but a little here and a little there all adds up, and it's all taxable. Add that up and drop it in on your W-4 in the other income line. That'll cheat your payroll withholding up to "pre-pay" for these other little income sources throughout the year and there will be fewer surprises next tax season.
And then finally, the failsafe is that "extra withholding" setup. Whatever you ended up owing this year, take that number and divide it by however many payrolls you have in a year, and add that in as an additional amount withheld on your paychecks. This is a whole dollar amount, not a percentage rate. It's another way to pre-pay for taxable income that's not included in your day job rate. You can do this on your state withholding form as well.
posted by phunniemee at 2:24 PM on March 17, 2021
So. The IRS has a withholding calculator that you put your numbers into and it will tell you exactly what to enter on your W-4. What I like most about this calculator is that on the last page there's actually a slider bar where it lets you change the amount you want back in a refund. You cheat it up for a bigger refund, it's dynamic and updates what you should input on your W-4 to get closest to achieving this. It's important that you & your spouse both work through the calculator together and both update your withholding documents at work.
If your number one goal is OWE NOTHING, when you fill out your W-4, set your withholding at the single rate, do not put in any dependents. This isn't lying to the IRS about your dependents, it's asking your employer's payroll to withhold at the maximum amount for your income. The rest will shake out when you complete your return. I'm not familiar with Oregon's state withholding form, but at a quick glance it looks like it's still following the format that the Federal W-4 followed prior to 2020, where you can claim exemptions and allowances. Just don't claim any exemptions or allowances.
(Also, if you're someone who gets bonuses throughout the year, ask your payroll person how they set up withholding on bonuses. Withholding on bonuses is generally set up separate from your regular withholding schedule. Payroll people are fallible, they might be fucking up. Just ask what the withholding rate is on any income you get other than your regular salary.)
One thing people often don't think about is other sources of income. You just did your tax return so you should have a pretty good idea what those are. Any 1099-DIVs or -INTs you got? Sure, interest rates on savings accounts are shit right now, but a little here and a little there all adds up, and it's all taxable. Add that up and drop it in on your W-4 in the other income line. That'll cheat your payroll withholding up to "pre-pay" for these other little income sources throughout the year and there will be fewer surprises next tax season.
And then finally, the failsafe is that "extra withholding" setup. Whatever you ended up owing this year, take that number and divide it by however many payrolls you have in a year, and add that in as an additional amount withheld on your paychecks. This is a whole dollar amount, not a percentage rate. It's another way to pre-pay for taxable income that's not included in your day job rate. You can do this on your state withholding form as well.
posted by phunniemee at 2:24 PM on March 17, 2021
Second vote here for In or Out Tax Service. They really are personable, professional*, highly competent and prompt. The staff I worked with were all women, but I don't know what that means for their overall ownership or leadership.
*and non-judgey too. They one helped me reduce a potentially catastrophic tax liability down to a minor inconvenience without even the slightest hint of a raised eyebrow when it came to the really stupid shit I did to create that liability.
posted by space_cookie at 12:58 AM on March 18, 2021 [1 favorite]
*and non-judgey too. They one helped me reduce a potentially catastrophic tax liability down to a minor inconvenience without even the slightest hint of a raised eyebrow when it came to the really stupid shit I did to create that liability.
posted by space_cookie at 12:58 AM on March 18, 2021 [1 favorite]
I think they’re booked for 2021, but I absolutely adore Jenna of Shift Accounting— worth reaching out for next year. Also have heard good things about Artemis Tax!
posted by actionpact at 8:30 PM on March 18, 2021
posted by actionpact at 8:30 PM on March 18, 2021
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posted by furnace.heart at 1:58 PM on March 17, 2021