Income taxes

[dpmtherrien]

:mad3:

I just had my taxes done. Who says you can't get hurt from a blank. :cursing:

[luvmysuper]

:mad3:

I just had my taxes done. Who says you can't get hurt from a blank. :cursing:

Ha!
You think it's bad now?
Stick around.

[blackfoot]

This is the first in 6 years that I will get a refund. But, the fridge went out and it will go to that. :thumbdown

[dpm802]

I got a nice healthy refund from the Feds, and a skimpy, almost non-existent one from the State.

This is the first time I used TurboTax to do the returns. Complete with the e-filing and direct deposit of my refunds. I had the money back from the Feds in just 4 days, and from the State in just a little over a week.

It was ridiculously simple, fast and easy. I'M KICKING MYSELF FOR NOT DOING THIS YEARS AGO.

[faster_than_u]

H&R Block for me got a great return. Sometimes tax time is good.

[texquill]

For those of you who get substantial refunds and who plan to use some of the money to pay down the credit cards - just remember that you made an interest-free loan to the government and you, in turn, were paying the credit card company what - 9%? 17%? 29.9? interest to borrow the money so you could make the loan to Washington!

Take a look at your payroll withholding status if you're getting a big refund. Change your W-4 and take more money home each paycheck! pdf version of 2010 Form W-4 (http://www.irs.gov/pub/irs-pdf/fw4.pdf)

[Grumpy Old Git]

My tax situation has been, erm, complicated for the past few years (questions over residency, location of work, the fact that CT and NY don't play fair and can legitimately double tax you in some circumstances, my role straddled several jurisdictions, etc.) so I've always ran the withholding a bit lean to ensure I don't get a nasty surprise come April.

A colleague of mine who was in a similar position tried to get the withholding right and ended up with a $12k bill. He's since left the country for a few years to work in Europe so has gone to another system that is simpler, but harsher (I think in Denmark he loses about 60% of his income).

There's no way I could find that cash so I can't sail close to the wind.

Things have calmed down now so this should be my last year of any kind of refund. Sorry Uncle Sam, you're just going to have to work without my tax free loan.

Makes you wonder what would happen to all the CPAs if the US decided to go down the simple flat rate system, say at 25% (http://news.bbc.co.uk/2/hi/business/4155907.stm)? I don't think the IRS would be too happy either - just think of all the layers of bureaucracy that could be eliminated.

[luvmysuper]

For those of you who get substantial refunds and who plan to use some of the money to pay down the credit cards - just remember that you made an interest-free loan to the government and you, in turn, were paying the credit card company what - 9%? 17%? 29.9? interest to borrow the money so you could make the loan to Washington!

Take a look at your payroll withholding status if you're getting a big refund. Change your W-4 and take more money home each paycheck! pdf version of 2010 Form W-4 (http://www.irs.gov/pub/irs-pdf/fw4.pdf)

+9

This. :thumbup1:

[tblech]

My tax situation has been, erm, complicated for the past few years (questions over residency, location of work, the fact that CT and NY don't play fair and can legitimately double tax you in some circumstances, my role straddled several jurisdictions, etc.) so I've always ran the withholding a bit lean to ensure I don't get a nasty surprise come April.

A colleague of mine who was in a similar position tried to get the withholding right and ended up with a $12k bill. He's since left the country for a few years to work in Europe so has gone to another system that is simpler, but harsher (I think in Denmark he loses about 60% of his income).

There's no way I could find that cash so I can't sail close to the wind.

Things have calmed down now so this should be my last year of any kind of refund. Sorry Uncle Sam, you're just going to have to work without my tax free loan.

Makes you wonder what would happen to all the CPAs if the US decided to go down the simple flat rate system, say at 25% (http://news.bbc.co.uk/2/hi/business/4155907.stm)? I don't think the IRS would be too happy either - just think of all the layers of bureaucracy that could be eliminated.

25% ?!? try 10% across the board no deductions or exclusions...

[kwk285]

Just remember the IRS spells "theirs."

You should always hope to break even at tax time. A refund means you have given the government an interest free loan. If you have to cut a check, it is always when you have had several unexpected expenses and cutting a check to the government hurts.

[mretzloff]

Just remember the IRS spells "theirs."

You should always hope to break even at tax time. A refund means you have given the government an interest free loan. If you have to cut a check, it is always when you have had several unexpected expenses and cutting a check to the government hurts.

+1

Breaking even or owing a little bit is the best.

[pyrrhusmj]

25% ?!? try 10% across the board no deductions or exclusions...

NM don't wanna end up in a flame war.

[Uncle Erik]

Makes you wonder what would happen to all the CPAs if the US decided to go down the simple flat rate system, say at 25% (http://news.bbc.co.uk/2/hi/business/4155907.stm)? I don't think the IRS would be too happy either - just think of all the layers of bureaucracy that could be eliminated.

A flat tax will never happen for one simple reason - no one knows what will come out the other end. There are too many variables to successfully model the revenue it'd produce. Any significant change terrifies either party, regardless of rhetoric. If funding isn't what's expected, it would be nearly impossible to go back to the old system without massive problems.

Not that I have a problem with flat taxes (it is a good idea), but it'd be incredibly difficult to get either party to change.

Also, a lot of CPAs audit public companies and do accounting work. There's a lot of accounting work out there besides taxes.

My taxes will be a bit steep this year, but my 2010 taxes will be much better. I'm in the process of buying a house in the desert - great deal and a nice tax break! I could use it!

[TheScalpel]

I am a huge fan of a flat tax or better yet a national sales tax.. to many deductions favoring corporate interests and the wealthy, while middle class people continue to see a marked decline.. better yet, a national sales tax to close the 'tax gap' where 40+% of the country doesn't pay any income taxes... with a national sales tax, if a poor person buys a bag of doritos he's paying taxes.. and if a rich person buys another yacht, likewise..

[luvmysuper]

I am a huge fan of a flat tax or better yet a national sales tax.. to many deductions favoring corporate interests and the wealthy, while middle class people continue to see a marked decline.. better yet, a national sales tax to close the 'tax gap' where 40+% of the country doesn't pay any income taxes... with a national sales tax, if a poor person buys a bag of doritos he's paying taxes.. and if a rich person buys another yacht, likewise..

I'd prefer a National sales tax to a Flat Tax as well.
But, really - that's like saying I'd rather date Snow White than Cinderella.
Either way it's just a daydream that will never happen.

[David in Boston]

I am a huge fan of a flat tax or better yet a national sales tax..with a national sales tax, if a poor person buys a bag of doritos he's paying taxes.. and if a rich person buys another yacht, likewise..

I'd go for a national sales tax.

But, not in my life time.:glare:

[Snood]

Why is the US income tax system seemingly so tricky?

In the UK, we have a small selection of bands, depending on how much you earn, you pay a certain percentage and that somes out of your pay each month before you see it.

Simple and very dificult to get stund by not paying enough as it's almost impossible to be paying the wrong amount. (well actually it's quite easy to be paying too much if you're in temporary work but claiming it back isn't too much bother)

[riooso]

I got a nice healthy refund from the Feds, and a skimpy, almost non-existent one from the State.

Let us make it perfectly clear. You got "your" money back from the Federal and State governments because you payed to much to them in the first place.


Later,
R

[SiBurning]

For those that do your own taxes, don't forget to claim the Bailout Buyout credit on line 63 on your 1040, aka the Making Work Pay bribe. It's new for 2009. I skipped it and got a correction back from them for a slightly larger refund. Now I have to go file an update for the state and probably send them a check.

[luvmysuper]

For those that do your own taxes, don't forget to claim the Bailout Buyout credit on line 63 on your 1040, aka the Making Work Pay bribe. It's new for 2009. I skipped it and got a correction back from them for a slightly larger refund. Now I have to go file an update for the state and probably send them a check.

That's on there just to introduce the idea, so it won't be such a big shock when they change the name to Making Workers Pay, and change the data tables so that it is a negative number!! :lol:

[spanx]

Let us make it perfectly clear. You got "your" money back from the Federal and State governments because you payed to much to them in the first place.


Later,
R

I use it like a savings acct so I can use it on the cc to pay down expences from the holidays.I even have extra taken out.I know I could put it in a bank and get 2% interest but since it makes no substancial difference why go through the hassle.

[blackfoot]

I use it like a savings acct so I can use it on the cc to pay down expences from the holidays.I even have extra taken out.I know I could put it in a bank and get 2% interest but since it makes no substancial difference why go through the hassle.

Yeah, that is how I see it too. Besides, if I were to put it in the bank, it would never make it to the bank. :rolleyes:

[kwk285]

I just saw where the IRS is gearing up to add 16,000 employees to help them become the collection agent for Obamacare.

As I understand, we will start receiving a from like a W-2 from our companies that show our costs and coverage of our helath plans. The IRS will then decide if we have "acceptable" coverage. If we don't, they will collection the fines.

[pyrrhusmj]

I just saw where the IRS is gearing up to add 16,000 employees to help them become the collection agent for Obamacare.

As I understand, we will start receiving a from like a W-2 from our companies that show our costs and coverage of our helath plans. The IRS will then decide if we have "acceptable" coverage. If we don't, they will collection the fines.



Name 1 legitimate source with actual verifiable facts. You can't, they don't exist. It's jingoist rhetoric meant to incite.

[kwk285]

Name 1 legitimate source with actual verifiable facts. You can't, they don't exist. It's jingoist rhetoric meant to incite.

I saw this on the Seattle TV news the other night. I am not trying to incite. If not the IRS, some other government department will have to become the agency that decides who has proper insurance coverage and who doesn't. That group would then be tasked with fining the people or companies that are not compliant.

[blackfoot]

http://www.pashnit.com/forum/images/smilies/eatdrink.gif

[Defend Tacoma]

I'm getting a fat refund, but I didn't loan em any money! 8K back for buying a house last year, 1500 for buying a furnace and heat pump, and 2k for the kiddos!

[82R100]

Name 1 legitimate source with actual verifiable facts. You can't, they don't exist. It's jingoist rhetoric meant to incite.

Probably from this:

“If the Democrats’ health care bill becomes law, the IRS could have to hire more than 16,000 additional agents, auditors and other workers just to enforce all the new taxes and penalties,” said Ways and Means Ranking Member Dave Camp (R-MI). “It is a dangerous expansion of the IRS’s power and reach into the lives of virtually every American.” - Courtesy of Scaredmonkeys.com.

I think you nailed it.

- Chris

[Crackedlens]

Name 1 legitimate source with actual verifiable facts. You can't, they don't exist. It's jingoist rhetoric meant to incite.

Here you go:

/SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH
COVERAGE ON W-2./

/ (a) In General- Section 6051(a) of the Internal Revenue Code of
1986 (relating to receipts for employees) is amended by striking
`and' at the end of paragraph (12), by striking the period at the
end of paragraph (13) and inserting `, and', and by adding after
paragraph (13) the following new paragraph:/

/ `(14) the aggregate cost (determined under rules similar
to the rules of section 4980B(f)(4)) of applicable
employer-sponsored coverage (as defined in section
4980I(d)(1)), except that this paragraph shall not apply to--/

/ `(A) coverage to which paragraphs (11) and (12)
apply, or/

/ `(B) the amount of any salary reduction
contributions to a flexible spending arrangement
(within the meaning of section 125).'./

/ (b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2010./

[pyrrhusmj]

Here you go:

/SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH
COVERAGE ON W-2./

/ (a) In General- Section 6051(a) of the Internal Revenue Code of
1986 (relating to receipts for employees) is amended by striking
`and' at the end of paragraph (12), by striking the period at the
end of paragraph (13) and inserting `, and', and by adding after
paragraph (13) the following new paragraph:/

/ `(14) the aggregate cost (determined under rules similar
to the rules of section 4980B(f)(4)) of applicable
employer-sponsored coverage (as defined in section
4980I(d)(1)), except that this paragraph shall not apply to--/

/ `(A) coverage to which paragraphs (11) and (12)
apply, or/

/ `(B) the amount of any salary reduction
contributions to a flexible spending arrangement
(within the meaning of section 125).'./

/ (b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2010./

The bill is not the issue, you would also need to include sec 9001. The issue is, where does it state we would need 16k more agents? It's rehtoric da jour with no verifiable facts at this stage. Ya know, in 4 years it may be proved to be right, but right now it is merely a scare tactic that seems to have failed.

[blackfoot]

The bill is not the issue, you would also need to include sec 9001. The issue is, where does it state we would need 16k more agents? It's rehtoric da jour with no verifiable facts at this stage. Ya know, in 4 years it may be proved to be right, but right now it is merely a scare tactic that seems to have failed.

No, you guys are disputing two different facts. It won't take 16K to do this. It will take 1K to do this. But, obviously, they will need to hire the other 15K to supervise the 1K. Problem solved! No need to thank me, I am here to help.

[Wil Dorenbos]

I'd go for a national sales tax.

But, not in my life time.:glare:

We have that: 19% (6 on food) as well as income tax up to 50%. Nice combination.

[pyrrhusmj]

No, you guys are disputing two different facts. It won't take 16K to do this. It will take 1K to do this. But, obviously, they will need to hire the other 15K to supervise the 1K. Problem solved! No need to thank me, I am here to help.

Well that is probably true.

[pyrrhusmj]

We have that: 19% (6 on food) as well as income tax up to 50%. Nice combination.

Sure, be the downer who reminds us American's how low our taxes really are compared to many in the Western World.

Michael

[82R100]

Sure, be the downer who reminds us American's how low our taxes really are compared to many most in the Western World.

Michael

ftfy

- Chris

[David in Boston]

We have that: 19% (6 on food) as well as income tax up to 50%. Nice combination.

What I stated was I would go for a national sales tax.

And what I meant was a sales tax to replace the income tax.

Not a combination of both.

[richmondesi]

Why is the US income tax system seemingly so tricky?

In the UK, we have a small selection of bands, depending on how much you earn, you pay a certain percentage and that somes out of your pay each month before you see it.

Simple and very dificult to get stund by not paying enough as it's almost impossible to be paying the wrong amount. (well actually it's quite easy to be paying too much if you're in temporary work but claiming it back isn't too much bother)

The reason that the tax code is so convoluted is because it's used as much to influence behavior as it is to raise revenue.

[pyrrhusmj]

What I stated was I would go for a national sales tax.

And what I meant was a sales tax to replace the income tax.

Not a combination of both.

And he was making the point that they have both in the Netherlands, but they do get programs for it.