This is somewhat T related. I do not owe Uncle Sam any money and now I can go to two local swap meets with a little pocket cash.(Usually uncle gets all the extra cash)
I am happy
My uncle doesn't get any extra from me and hasn't since I was 19 years old and I'm almost 47
I thought you were going to repeat the deduction message
Good luck - just remember that you are saying is that you put in more than you owed. You still and to pay!
Withholding is an interest-free loan. If I end up owing any tax, I figure that money sitting in my bank account has at least earned enough interest to pay for the stamp I use to send it in.
Of course you are 100% right, Steve. Withholding is an advance to the government on what you'll probably own on April 15 and they do not pay interest on it. But the buggers will penalize you with fines if you "under withhold". They want theirs in "real time" payments.
I've never understood why people are so happy when they get a big refund. It only means that they loaned the government money interest free. I work hard at keeping things "balanced" in an effort to keep my refund or my amount owing at not over $100.00 either way.
I already spent my refund. I always figure out my taxes as soon as I have the required documents and then send in if there is a refund. If I have to pay, I wait till April 15 to mail.
I claimed all 9 of my cars as dependents.
I sign my tax documents tomorrow. Last year I didn't get them done until July. Had to pony up 2k in penalty and interest. I decided I didn't like extensions after that experience. I hate doing tax preparation. I always put it off and will find every excuse to avoid getting started on them. After the Super Bowl I start fretting about getting started and worry about making the April 15 deadline. Every year! After I do get the info down on paper I get mad at myself for having put it off. Its not hard, just a flaw in me!
There are free tax preparation websites. You just type in your info and the software does the figuring. The IRS website has links to several of them. You can pay electronically online or print out the completed forms and send them by mail. After a bad (costly) experience with the former method a couple of years ago, I use the latter.
Willie, What two local swap meets are you referring to?
It was a good year, I only had to write a check for $50.00 I usually end up having to write a check for $150-$250 I have better uses for my money than uncle!
My wife has an intermittent side line that sometimes causes us to have to pay and sometimes results in a big refund. It just depends on whether she made much additional income that year. It's hard to plan around. We do have extra taxes taken from our regular paychecks, but sometimes it doesn't cover the extra income and sometimes it is too much. It may be time to start paying quarterly, but an accountant at work told me we should probably not worry about it unless the IRS tells us to. I guess they have bigger fish to fry: Administering healthcare, auditing conservative groups, etc....
I keep trying to figure out a way to claim my '26 Tudor as a dependent, since it seems to require ever-increasing infusions of cash for its support. So far, my tax guy hasn't found a way though.
Terry, San Marcos I believe is this weekend and Pate on the other side of Fort Worth starts on the 24 of this month. (They do not compare to Chickasha but some T parts do show up)
I better remember to mail that letter to "Uncle" today.
I don't really mind paying "my fair share" but there has been a couple of years that I got dinged pretty hard.
The "loop holes" always seem to evade me and I do think it is wrong that a secretary pays more in taxes than her boss does. A complete re-write of the tax code is in order and I recommend 8% for everyone and every company of any kind; zero deductions of any kind for any one or any entity.
Unfortunately that will never happen.
There are a lot of good arguments for a "flat tax" but you are right, it will never happen. It seems we have decided (the liberals have) as a society that only a "progressive" tax is appropriate. Then we have loaded this progressive taxation system with many "loopholes", resulting in situations as you describe.
How complicated is it? Just exempt all household income up to the poverty line, then tax the rest at 8% or 10%. For companies, just do not apply the poverty line exemption.
The system is full of mysteries. One of my favorites is tax special code status for a "non-profit" corporation. If it's really non-profit, why does it need special status in the code?
Don't get me started.......
I know this will po some but i think waiting to the last thing is Dumb!! Bud.
I calculate early -
If they owe me I send it in immediately
If I owe them they get it on April 15
This is an over simplification
The fairest tax is like going to the movies - everyone pays the same amount except for seniors who get a discount. (That's me!)
If you don't like the movie don't go and move to someplace else!
The next is a flat tax where everyone pays a fixed percentage.
You can add an exemption to those below the poverty line to the previous two but it has to be progressive so people don't earn less when they cross the line.
What we have now is stealing from those that work hard and giving it to the lazy.
It would not be necessary for a flat tax to be progressive. Just apply it to the amount over the poverty line only. If the poverty line is $30, then no tax on any amount at or below $30. If your make $31 then you owe $.10 tax. If you make $50, then you owe $2.00 (10% of the amount over $30). Simple is better!
I used to hear that there are two things in life that you can not avoid. "Death and Taxes"
Pay enough taxes and you'll wish you were dead!
I got lucky! A decent refund this year. Start sweating it out over next years taxes tomorrow. Tonight is off limits to anymore thought about getting taxes done on time.
One year I made the "Mistake" of cashing in some stock to retire my mortgage. Fortunately I did my taxes early and found out that would put me in the "Alternative Minimum TAX" category But a tax advisor told me to hurry up and dump the maximum contribution to a 401K for the previous year,.. came in $15 dollars under the AMT...WHEW!
The problem is the loop holes, not the progressive percentage. I can tell you that 8% of my paycheck hurts me and I notice it a lot more than a guy making $500K a year. An extra $4,200 for me is a HUGE difference, but for the other guy he'd have to pay 15% to really "feel" it like I do.