I would take it out tbh and pay off the credit cards.

The credit cards are probably eating most of your income at this point than your actual mortgage. Pay the month that you're behind in mortgage and pay off your credit cards.

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I am no financial advisor but at least that's what I would do.

It is more than enough to pay off all credit cards

How much do you have in your 401k?

At this point I would take out the money out of my 401k and pay off the credit cards or pay the mortgage and some credit cards.

There is no way you would owe 22k in taxes if 75k is the entirety of your income.

There is no way that medical bills and insurance payouts can cause you to owe taxes...I dont even know what you mean by that.

Do you have other sources of income? Did you have basically no taxes witheld for more than one year and just failed to file taxes last year? If you filed taxes last year how much did you owe then and what has changed if anything?

Also is it 22k or 25k, your title and post arent the same.

I had a sign on bonus last year but not the 24% bracket. No the the other two descriptions as well.

You should still check box 2c if you meet the criteria as outlined in that box, otherwise, go through the worksheet.

>I’m not really clear why the simple MFJ and 2 jobs was wrong last year.

Do any of the following apply:

• dissimilar incomes between spouses

• significant non-wage income

• significant wage income from bonuses/commissions and ≥24% tax bracket

>So should we both do the 2 jobs and I leave the additional amount?

Depending on how you calculated the additional amount, possibly. Or, you could leave the 2 jobs box as is and increase the additional. It's just different levers adjusting one total.

Uh. Isn’t that 5.1% annualized?

So should we both do the 2 jobs and I leave the additional amount? I’m not really clear why the simple MFJ and 2 jobs was wrong last year.

Yes our salaries are both close to the same.

>I changed my withholding to still MFJ but not the 2 jobs checkbox but included an additional amount withheld.

By not checking the 2 jobs box you reduced the "baseline" withholding, so even though you added extra it was extra to the new lower number.

If you took what you owed last year, divided by number of paychecks, and put that as the additional, you'll need to re-check the 2 jobs box.

for MFJ with the 2 jobs section, from what i recall, you only do that for the person with the higher paying job. the person with the lower paying job should mark single on their w4. that way the right amount of tax will come out.

granted this was before the recent w4 changes so this may be different now

Do you both make close to the same amount? If so, the simplest way is to both mark Single and leave everything else alone.

ACA insurance paybacks are real, but for 2022 the income threshold that would normally trigger a full repayment is not in effect. Put another way: a tax household making more than 400% of the federal poverty line can still qualify for the Premium Tax Credit (PTC) in 2022.

You’re right around the line (assuming no kids), but either way you have a monthly amount based on income that you are expected to pay. Everybody gets access to the middlest of the mid-tier plans (the second lowest cost silver plan) if they are willing to pay their contribution amount. The difference between your contribution amount and the mid-tier plan’s cost is your PTC. If you end up getting too much advanced, you have to pay it back.

25k is a big number, but not impossible. If you had no withholdings, maybe. If your spouse is self-employed and you didn’t pay chunky estimates, more likely. But either way a full repayment situation is maybe not so likely for a couple making less than 80k in tax year 2022. Your dude may not know the ceiling got blown off for 2022, or there may be other things in the mix that you’re not picking up on.

Good luck! If you owe you owe, but if you’re not sure you can consider paying (on time, avoiding potential penalties and interest) and then extending the filing deadline to have more time to sort it out. Or file, request an installment plan(s), and seek to potentially amend asap once you’ve gotten a clear answer.

He welds for an employer or self employed?

I worked as a barber and receive a 1099 yes while he works as a welder

Fidelity offers a 6 month CD at 5.10% rate.

That's $22,950 in interest on $900,000 over 6 months.

Are either of you self employed

Before you do anything, you would do well to start learning. Don't trust internet advice about your money -- understand this stuff, learn what these two recommended and why. Most of the basics you can learn from the wiki here. I'm not sure this forum would steer you wrong or run endless fees like a neighborhood 'financial advisor' office would, but you best get to learning about your money and what you think you want to do with it before you follow us.

Nothing wrong with a series of CDs and a HYSA. Split it all up to keep individual accounts under $250k.

Ally no penalty cd would be my choice if I were making decision today. Open a joint account and it covers 500k at least.

I love this question! So let’s work through it! 2k down on a car, and you’ll have to finance the rest. The cost of cars you’re looking at, 5k/7k respectively, tells me it’s going to be a used, as-is, vehicle. Which is fine! No shame in the used car game! However, your CS is not good and banks know that. Financing a used car increases rates already (vs new).

So what they will do is increase your rate because you are considered high risk. They’ll want as much money upfront as they can get, because honestly, they are banking on you defaulting anyways. 10%15% is not good… I honestly think it will be even higher if you do get approved for financing. You will only find out the actual rate if you apply. Rates right now are high. I recently bought a new car, and I have excellent credit and income, ideal DTI as well. There was no way I could get my rate lower than 5%. My last car was 2.9% I’ll just have to refinance later when rates drop.

However, cars are not something you put money down on and pay your monthly car note and be good. Think bigger.

Insurance. Fuel. Repairs. Maintenance.

Insurance would have to be full coverage since it will be financed, the cost will be solely based on you, your history.

Fuel is going to be fairly expensive considering how far you mentioned you’ll drive. My fuel cost alone each week is about $40. And I live within 10 miles of my office. With an occasional shopping trip or grocery run. It’s always a sad day at the pump.

Repairs will sneak up on you and it’s so funny that they usually do when you’re broke! But used cars will need them. From previous experience, repairs happen more when I needed a reality check. And those can be pricey…

Let’s get to the end here, maintenance. Oil changes, tires, tune ups, car washes, wiper blades, etc. Even registration. Those are things you have to do and they aren’t free.

So let’s try to imagine the true cost of having a car with everything in consideration. In theory, you could put the 2k toward your debt, knock out the rest in just a few months because what you would spend monthly on a car (note, maintenance, insurance) can all go toward your debt instead. 😀

Keep in mind that T Bills are exempt from State and local income taxes.

Research has always been my life. Though, hearing others, especially reddit, has always been a big contribution to the knowledge I might've skipped.

I did some subtracting on my debt. Where I'm at now. When I drop $2000. I'll be $300 away from 30%. Next Friday will put me in the safe zone.

I'm glad you're doing better off! Keep it up on your end. We both got this. Believe it or not. I used to be 750+ score. That was years ago.

thank you so much, I'm going to ask for my paper work back and then plug it in online to see.