Income Taxes

Got my taxes done to day. I broke even. Get nothing back, pay nothing.

 

Good for you

You say that you 'broke even'; then you said that you 'pay nothing'.

Does that mean that you did not pay into Income Taxes? Or that you did pay, but you are not getting any of your money back?

I suspect that you did pay something. Maybe you paid a lot.

However nationwide about 40% of us do not pay anything, ever. I have not paid into Income Taxation since 1983.

 

I'm assuming what he means is he's not getting a refund, nor did he owe any additional taxes. Of course he had to pay some, but that was deducted from his checks throughout the year. If you haven't paid anything for that many years, you're either a corporation or doing something illegal, near as I can tell.

Edit: Or are you just counting federal? That number works for federal alone, if you disregard any state or local income taxes. Of course, most of those are people who are receiving income which is not taxable such as worker's compensation or an adoption subsidy check.

 

I had to pay back taxes fines and interest for several years. After that I claimed -zero + extra 25.00 a week and now I get back 4K every year. But that means I do without that 4K during the year. It's like my savings account.

 

I did not pay income taxes [Federal or state] during most of my 20-year Active Duty military career. During that time, I collected apartment complexes at each duty station. Now I am retired military and I have farming income to add to my rental income.

 

GRR.... Don't get me started on taxes, I have to write a check. At least I have until July this year, we are a disaster area after flooding.

 

Getting a good interest rate on that 'savings' account?

 

Better than if it was on hand and spent every week. My actual savings account isn't exactly a get rich quick account either.

 

I hear that from people all the time, but you know what? It works for me. I would WAY rather have the government "use my money without interest" than have to write a check come spring, because I'm never going to save the money throughout the year to cover whats due. It's funny for me that about 90% of the people who are adamant about not letting the government take more out of their checks than they absolutely have to are the exact same ones complaining when they have to pay every year.

 

Not sure how you collect apartment complexes... do they store as easily as, say, post cards? It's interesting, though... I thought only combat pay was non-taxable, not regular military income.

Farming income is federally taxable, as is rental income.

 

I like what she said!

 

Not many people no this about taxes.

But if you think you are going to owe taxes for this year or next year like i did.The Best thing to do is on your w2 forum have them take out 10 to 15 dollars out of your check each time i know it may sound like a lot.But at the end of the year of taxes it comes in handy if you owe money.Be cause if you make at lest 2 grand at the end of the year you get at lest some of it back if you owe.It is even worse if one of your family members dies and puts you in the middle.And that end of year taxes helps a lot more than you think.

 

Well, I would rather keep my pennies, than let the gubment be their custodian. YMMV If you like the 'refund' power to you. Seems more logical to me to consult a tax professional and pay enough where you pay little or no taxes, and get your money all year.

 

That probably would work if you have a job where your income is consistent. I work on-call, so while the year-end is usually in the same ballpark, any given check can be for anything from 4 hours to 80 or more... if I worked during that particular pay period at all. And then there are the 1099s, which are unpredictable at best. On average, if I got the amount of my refund back all year long, it would amount to less money a month than my phone bill. So not worth the headache.

But you were the one grumbling because you have to write a check, where I'm perfectly happy with my pending refund.

 

I am grumbling for a HBT reason Sgt. Tibbs. I will leave that aspect of it out of the conversation here.

I do plan on making some changes so I pay much less next year.

 

I posted on here about my Tax Filing day a while ago.

Around here a average bank is only paying 0.04% on savings accounts. So no one is making much money n savings accounts either. When we get our bank statement we laugh about what we can spend our few pennies interest on each month. Even when we owned stocks the dividend was laughable and more trouble to report on tax returns than it was worth. At least that was our experience.

Included in that 40% are all those who live off the government while other people work and pay taxes to support them. I suspect the number is even higher than 40%.

 

Gotcha, and fair enough. Hope it works out for you!

 

Is it too late to fly to Panama now?

 

Agree, interest rates can often be lower than the monthly fee on a bank account. I meant investment type account, although those can be hit and miss, the gubment gives you nothing when they hold your money.

 

I remember my mom saying at one time you could get 15% interest on CDs. Bet we never see that again. Also they would give you a free gift with a CD. The value of the gift depended on the amount of your CD, high end was a color TV.

 

Yes, sadly it seems the days of getting compound interest at the local bank is gone for now.

 

David - yes workers here have to file every year if they are documented and not working "under the table" (cheating the system). Taxes based on income and family situation. Say 45K with married and 3 kids pays less than 45K with single and no kids. Weekly amounts are withheld to cover your projected yearly income based on that weeks pay. So a week with 16 hours overtime will have more withheld than a 40 hour week. If you work overtime half the year then too much money has been taken and you get a refund. Overtime and family status changes can generate a refund owed. I overpay a extra $25 a week to cover unknowns and withhold as married but take out as if single. These 2 steps plus the overtime I work give me my 4K refund in an average year. Say I pay maybe $9500 during the year but only really owed $5000 then I get $4500 back.

 

Here's why some need help.
From the "Washington Examiner"

As they rush to file their taxes by April 15, Americans are rightfully frustrated with the complexity of the 74,608-page-long federal tax code.

 

Oh yeah- the Obama Health Care is tied into taxes also

Source "Washington Post"

The process the McConnell folks used is fairly simple. They went to the Web site for the Federal Register and searched for “Affordable Care Act,” the official name for the health-care law. That turned up 897 documents.

On the Web site, there’s a button that will download the documents to an Excel spreadsheet (CVS/excel). Then you use the sum feature on Excel to add up the pages and presto, you end with 20,202 pages. These were then printed out and duly stacked in a pile.

Said to be a 7 ft stack.

 

Keep in mind that I'm not a tax protester or anything of the sort. I served in the navy for 6 years so I have been paid by taxes. My taxes also support schools and local state and federal projects which I'm involved in building many in my career so I do get a 'return' on my money!

 

Dave basically the US tax system is set up so the so called "Middle Class" pay the highest % of tax.
Lower income often pay nothing. Higher income have advantages of loop holes that allow them to pay way less than their fair share of taxes. The average tax payer middle income level pay the majority of taxes collected. Most of us would benefit greatly from a flat tax % that everyone had to pay with no exceptions, in my opinion.

 

In the US, if you're under 65 and single, you're allowed to make up to $10,300 in a year without having to file a tax return. The exception is if the employer submits a W-2 to the IRS on you, in which case you have to file. That number is for 2015, and is figured on the standard deduction for a single person with 1 exemption. That's just a general guideline, however, and every person should make sure for themselves if they should file so they don't risk penalties. And if you're due a refund you should definitely file, or you'll never see the money that was deducted from your check again.

I used to pay to have mine done, when I had 10+ employers as well as a number of 1099s (for Dave, those are wages made that do not have taxes deducted, as they are considered "independent contractor" which is basically being self-employed), and for the federal, state, and 2-3 city's forms it cost me about $400. I usually got a refund around $1,000.

Now my taxes are much simpler. I only have three regular employers, it's been years since I got any 1099s (most places we work are opting to use my union local's payroll company instead of dealing with it), and I only have to file in one city (I work in two, but don't make enough in the second one to require filing). Even with itemizing deductions, exemptions, and extra income from my jewelry and freelance writing hobbies, it's easy enough with software to do my own. The fee increased this year, but it still only cost me about $75.00 and about an hour of my time.

 

I'm not disputing that high income taxpayers collectively pay a higher percent of all taxes collected simply for the fact that they make the largest portion of money.
It is the percent of total income that gets complicated with a tax code that allows things like paying
a lesser percent of tax on investment income than the average taxpayer pays taxes on wages. So if all your income is from wages you pay a higher rate of tax than the percent you would pay if you have income from investments or could take advantage of the many tax loopholes. I am no tax expert and there are exceptions in both directions of income levels. Just saying the tax codes are not equal for every one. If that makes sense.

 

My biz jet is fueled and ready...

 

I was thinking of asking my Union if I could have a cut-rate mortgage that I wont have to repay any time in the future. I would also like to have been paid an absolute fortune in 'Redundancy' money when I'd left my last job voluntarily to accept a new one with great pay!
I know it's mostly rich business people getting something for nothing but this example below takes the biscuit!
http://www.bbc.co.uk/news/uk-politics-36046675

 

The issue isn't paying taxes for me either. It is the wasteful re distribution of wealth that bothers me.

 

I didn't mean to ignore your question.
I do not pay into Income Taxes. I'm on Security Income. I also have a substantial Managed Money Account.
The Account consists of tax free mutual funds.
The account provides me with a tax free dividend each month. Some I use and the rest is reinvested in the account.
The account does have a small "Fee" to operate. Capital gains and loses can also happen.

 

Hi David

Yes I think it's best. The EU is such a bureaucratic and undemocratic monster. I think all the beneficial things can be dealt with by agreement without being a member, but I think the scare campaign to 'remain' may well win but not by a big majority. Especially with Obama getting so heavy about what would happen if we leave. I was disappointed with that interference given he'll be gone long before an actual exit 2-3 years after the actual vote. Actually, if were were negotiating with Trump for a trade deal it would be easier than with Clinton. Even though Trump says some mad things he is no where near as right-wing or conservative or pro-military intervention as Ted Cruz.

 

I live in a condo with an HOA with "fees" due monthly,
Cheapest around, but it's being "taxed"(stealing)
they spend $40k years to move grass/etc
(wehave weeekly grass cuttings and no, I dont live on a golf course. I live in midwesst,so we dont need that as our grass looks like shit
BUT
my HOA/condos are full of old people(60+) who are crazy?

but it's the same as taxes, yes?
I pay $2k in property taxes(so I have a mortage and "own" my land,, but I'm really renting it.as I pay for shit I dont use)

just like taxes
why cant i just pay for what I use?
I dont use schools(below average test scores/graduation %) I pay for lots of "stuff" I don't use
BUT just like living where I live, I know hose are the rules, that I better make money to pay for my lifestyle AND give money to the mob(feds) to watch over me

 

right, so don't keep your money in a bank account
dont forget the free bill pay feature, you can send a check/bill payment anywhere for free... no writing checks, making envelops, stamping envelopes(like my dad did when I was growing up)
its all free...unlesss your money is with the wrong bank instead of a bank with no feees and free checking!