fidelcashflow profile picture
fidelcashflow profile picture

fidelcashflow

Account Executive

Catalyst
Opinionated
Valued Contributor
+4

Do you owe taxes as an AE?

I am so confused. 
I'm doing my taxes right now and after entering my two W2's, so far I owe $5.4k+. 
How is this possible? I did the math and I paid about 24% in taxes over the year which is what my bracket should be. I don't understand why I still owe a boat load after this. 

Apologies in advance if I sound stupid but this doesn't make sense to me. should I be paying more in California? I don't get it. 
🧠 Advice
💴 Money Management
🐱 Off-Topic
14

30 comments

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CoorsKing
WR Officer
11
Retired King of the Coors Knights
Most companies don’t withhold enough for sales roles. Talk to a CPA and manually adjust your withholdings. If you earn most of your commission in bulky spurts as well, it can trigger penalties for reporting as well. 

California does also fuck you out the ass (I’m in SF).

Seriously, get a CPA. I went from owing $50K filing my own taxes a few years ago down close to $10k (would have been $0 this year but I had some stock impacts), there is a ton they can write off and help you plan for.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
Sometimes it pays to pay
Samsamoon
Opinionated
1
Associate
Yes. bend kind most excellent. 
Sunbunny31
Politicker
6
Sr Sales Executive 🐰
I ended up owing about $3K despite have extra withheld, however, part of my issue is the married status with my husband never seeming to get his W-4 correct. Oh well.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Where’s the edit function? *having
hh456
Celebrated Contributor
6
sales
I owed $836 this year. Closest I ever got it one year was a $78 refund. I’m trying my best to hit a 0.
CuriousFox
WR Officer
5
🦊
I owed $776
TheNegotiator
Arsonist
3
VP of Sales
I owed just under 4k… 😒
hh456
Celebrated Contributor
1
sales
Claim some credits 
CuriousFox
WR Officer
2
🦊
I did. Originally was $7k.
hh456
Celebrated Contributor
1
sales
Good work.
unclespacejam
Politicker
4
ur dad’s brother
Resident Canuck here, that’s a real pain in the ass. Can’t say I’ve had the same happen to me. in my experience it’s been the opposite. Canadian AE’s pay so much goddamn tax on commission payouts (like 50-53%) every month, and give a fat interest-free loan to to gov until tax time in April when I get my return back. Fucking sucks because I’d love to have that money compounding all year long rather than withering away in JT’s piggy bank.
funcoupons
WR Officer
4
👑
I feel this in my soul. 
unclespacejam
Politicker
2
ur dad’s brother
It’s deep and it hurts real bad
funcoupons
WR Officer
2
👑
That’s definitely what she said 
jefe
Arsonist
1
🍁
Was looking for this..

Always get money back, especially when pumping up the RRSP
1nbatopshotfan
Politicker
4
Sales
Rather than hire a cpa, I used a very simple trick to get 2k back. Have another kid. Sure, it costs way way way more in the long run, but in the short term, that 2k is great! 
CuriousFox
WR Officer
5
🦊
No ma'am no ham no turkey 😆
Samsamoon
Opinionated
3
Associate
No this most worst advice 
DungeonsNDemos
Big Shot
2
Rolling 20's all day
Lmao real pro tip right here
saasbaby
Politicker
1
SDR
Ahahahahaha 🤣 nice 
The_Sales_Badger
Notorious Answer
2
Account Executive
Find the sketchiest accountant you can find. Preferably one that has experience directly with the IRS. You can find these types around small-town bars, chain smokin' bogeys, and playing the video game machines at the corner of the bar. 

Don't believe me? Next time you see that person, ask them what they do.... you'll be getting money back in no time.
Samsamoon
Opinionated
3
Associate
Hello yes you correct I love war room! 
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
I always have them take our way more than I need them to. Would rather have the govt hold the money than have to pay.
TennisandSales
Politicker
1
Head Of Sales
oh no problem just get married and have kids....problem solved 😂😂😂😂
Sunbunny31
Politicker
0
Sr Sales Executive 🐰
Unless your other half doesn't put "0" for dependents.  Sigh.
ABCvs
Valued Contributor
0
VP of Growth
Don’t give the government a free loan. Owing us better than refunds. But yes, you are probably paying more in CA.

Get an account.
Justatitle
Big Shot
0
Account Executive
One word 3 letters: CPA. They literally do this hundreds if not thousands of times a year and have all the upgraded softwares to help you out. 
Gyro25
Notorious Answer
0
Account Executive
I self withheld a certain amount each month from my base. I ended up getting a 2k or so refund.  Like you said, companies don't withhold for you, but there's usually an option to voluntarily withhold with the portal you use to get paid.
Annonny
Big Shot
0
Account Executive
YES!! Almost 2k..and I only switches to an AE in OCT!

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