Federal Income Tax Withholdings... Who Needs That!?

[moneybags]

It sounds like she is waiting on tax time to start the divorce proceedings, depending on that $10k refund (not sure that is the right term). We told her to keep in mind that since they now have two incomes they may not get all the money they are expecting back, especially depending on how much they are paying in income tax. Then she said it: "I'm not paying anything in on federal income tax".

I am afraid she is going to get hit with a $5k tax bill and penalties. Are my concerns unfounded?

She would probably be better off getting divorced and filing as head of household. She would get the full refund for herself and it could even be a higher amount.

[myrdale]

Minimum wage isn't enough to live on anywhere. That's the problem with it.

I don't disagree. In my opinion, minimum wage is for minimum experience / minimum effort and should not be forever.

In the case of him, he's been at the same job for +15 years. According to her, he's been offered the opportunity to advice, become a foreman, but he has chosen to say in a low responsibility / pay role. She's now been working for almost a year after some 15 years as a stay at home mom. She's been promoted twice, and is now an assistant manager role but they've feed her a line that they can not give more than one pay raise a year, so her pay doesn't reflect her position.

Either of them could quit their jobs today and be hired on and one of the numerous factories around town making x3 their current wage on day one. I understand money isn't everything, but a big piece of their financial struggle is self-imposed by the decision to not move up.

[myrdale]

She would probably be better off getting divorced and filling as head of household. She would get the full refund for herself and it could even be a higher amount.

Absolutely.

[LivingAlmostLarge]

somtimes it's hard to take a risk and get a new job

[chrismcdonald]

I don't have any idea how the tax credits work but As far as I think it's related to your income.

[myrdale]

I don't have any idea how the tax credits work but As far as I think it's related to your income.

Yes.