Finally got my taxes done

[jkust]

Finally got it all done. This year I paid the equivalent of a brand new 30 footer or multiple 2011 Escalade Hybrids, or a downpayment on a vacation home. The bummer is I drive an 11 year old piece of junk falling apart more daily and can't afford anything else after this year's bill. I certainly paid my fair share this year. It's hard to get ahead when, I keep giving it all away.

 

[bigdee]

Re: Finally got my taxes done

I know the feeling...this year is the highest amount that I ever had to pay.

 

[Brewman61]

Re: Finally got my taxes done

That is my weekend project. Not gonna pay or file any earlier than necessary. The IRS will just have to go another week without my $$$$.

 

[dockwrecker]

Re: Finally got my taxes done

Sounds like time for a new accountant to me...

 

[jkust]

Re: Finally got my taxes done

Sounds like time for a new accountant to me...

Unfortunatly it is what it is. At a certain point there are few to no deductions available. We are phased out of just about everything. At this income level I'd have assumed we'd be living the life if you asked me years ago but that isn't the case. All of our summer projects and plans are essentially scrapped now.

 

[mphy98]

Re: Finally got my taxes done

I feel your pain. We too pay way more than our fair share. I am all for a flat tax on everyone. NO deductions except for the mortgage one to try to keep the housing industry afloat. Other than that, none. You make 1,000,000.00 you pay 100,000.00. You make 10,000.00 you pay 1000.00. the pain is the same thoughout. Is not that what equality is all about in our constitution?

 

[jkust]

Re: Finally got my taxes done

I feel your pain. We too pay way more than our fair share. I am all for a flat tax on everyone. NO deductions except for the mortgage one to try to keep the housing industry afloat. Other than that, none. You make 1,000,000.00 you pay 100,000.00. You make 10,000.00 you pay 1000.00. the pain is the same thoughout. Is not that what equality is all about in our constitution?

Sign me up!

 

[Brewman61]

Re: Finally got my taxes done

jkust, looks like we live in the same general area- I'm south metro but still. Minnesota, the land of 10,000 taxes.
For me, I'm not self employed, and there really is a limit on what is allowed as a deduction. Mortgage interest, property taxes, and that's really the lions share. Charitable contributions, state taxes with held. As the standard deduction increases, and my mortgage interest decreases, the value of itemizing becomes less and less.
I guess I can console myself by the fact that in no part of the tax table does a deduction ever cover it's cost. At best it's an offset.
Deducting a dollar will never save you a dollar. Incurring an expense simply to be able to deduct it simply shifts the expense.
Of course taking all legitimate deductions available is fine, but like you said, so much gets phased out.

 

[jkust]

Re: Finally got my taxes done

jkust, looks like we live in the same general area- I'm south metro but still. Minnesota, the land of 10,000 taxes.
For me, I'm not self employed, and there really is a limit on what is allowed as a deduction. Mortgage interest, property taxes, and that's really the lions share. Charitable contributions, state taxes with held. As the standard deduction increases, and my mortgage interest decreases, the value of itemizing becomes less and less.
I guess I can console myself by the fact that in no part of the tax table does a deduction ever cover it's cost. At best it's an offset.
Deducting a dollar will never save you a dollar. Incurring an expense simply to be able to deduct it simply shifts the expense.
Of course taking all legitimate deductions available is fine, but like you said, so much gets phased out.

Yep the bummer is all those usual deductions everyone gets and talks about are zeroed out. Once you pay your mortgage, fund your retirement, fund your kids college, and everything else then pay the huge tax bill, even an over 250k income, I'm no better off than when I was making very little. When I was young and in college 11 years ago, I dreamed of making this much money and now I realize taxes and responsibly saving for retirement and kid's college, and you don't feel any wealthier. Let me introduce you to my 2000 Oldsmobile minivan. It really makes me respect the people who have all the extras, 2 homes, fancy cars, etc. How much money must they make?

 

[aspeck]

Re: Finally got my taxes done

Man, it's great to be poor! I get more money back than I paid in! Uncle Sam gives us poor people an extra $1750 for being poor! I do my quarterlies so I never get any money back (hate giving the gov a 0% interest loan), but this year I get everything I paid in plus $1750! Guess I can use that for boat gas money!

I feel sorry for you rich people!

 

[dingbat]

Re: Finally got my taxes done

Sounds like you need a better financial advisor. There are lots of ways to keep your money out of Uncle Sam?s pocket.
Are you maxed out on your home? Have you maxed out your retirement opportunities?

 

[DJ]

Re: Finally got my taxes done

I "zero'd out" . As far as a refund goes. That's a GOOD THING.

All told, the government got 34.3% of my income.. That's a THIRD, ladies and gentlemen. That's just Federal.



Y'all might want to take a look at what you ACTUALLY paid, via your employer.

 

[rogerwa]

Re: Finally got my taxes done

THats not counting all the other taxes, sales, property, etc.. AMT should be illegal. Its a different set of rules that apply only because you earn more.

 

[DJ]

Re: Finally got my taxes done

Rogerwa,

You are 100% correct.

However, as a Mod, I have to be careful as to not turn this into a political debate. It is what it is.

I merely stated facts, as you. Thanks.

To all. FACTS ONLY-no political opinions please.

 

[jkust]

Re: Finally got my taxes done

Sounds like you need a better financial advisor. There are lots of ways to keep your money out of Uncle Sam?s pocket.
Are you maxed out on your home? Have you maxed out your retirement opportunities?

What do you mean by maxed out on the home? As for retirement opportunities, everything gets maxed out which only means 401k's since we aren't allowed to have a traditional IRA since again it is phased out completely. Also, definitely staying away from the political aspects here. As for DJ's comment, yeah the state tax bill was just kind of turning the knife. My wife owns an LLC and she works for herself and has almost no deductions to speak of other than the individual 401k, a bit of mileage and some overhead and entertaining expenses. We have many friends/parents of our kid's friends who own also business and I am getting the sense they push the envelope on deductions. I'm just guessing on this but there are lots of nice cars and big spending going on that we just can't do.

 

[jkust]

Re: Finally got my taxes done

I feel sorry for you rich people!

Ha ha, i'm working to become rich but not there yet. Monetarily rich to me is around $10,000,000 of net worth. The key I live by is to only marginally alter our lifestyle no matter the money we have and earn. Every dollar I get not for the basics, I put away. Our savings rate of actual take home pay is probably 60 to 70% but I never see it. I like to fly under the radar and still think like we are poor college kids. I prefer driving a beater over a nice vehicle...less to worry about and nobody supects a thing. I think it is better to not show off when others would. See my tiny 18 foot boat, 3 year old tow vehicle and 11 year old commuter car. We are definitely not rich.

 

[paultjohnson]

Re: Finally got my taxes done

..........................................................IRS FORM 1040 EZ..................................................
Step 1. List how much you made last year $______________________________

Step 2. Send it in. :facepalm:

 

[DECK SWABBER 58]

Re: Finally got my taxes done

..........................................................IRS FORM 1040 EZ..................................................
Step 1. List how much you made last year $______________________________

Step 2. Send it in. :facepalm:

My sentiments exactly. I'm in a bad mood the whole day every year.

One thing that really makes me mad: Being self-employed you base your quarterly
payments on 90% of last years income. Well that figure can flucuate quite a bit.
If it goes up a lot then you have to send a check with your tax return. And then,
adding insult to injury this years first quarterly payment is due on the same date!

 

[DECK SWABBER 58]

Re: Finally got my taxes done

I feel your pain. We too pay way more than our fair share. I am all for a flat tax on everyone. NO deductions except for the mortgage one to try to keep the housing industry afloat. Other than that, none. You make 1,000,000.00 you pay 100,000.00. You make 10,000.00 you pay 1000.00. the pain is the same thoughout. Is not that what equality is all about in our constitution?

Their is actually a "Fair Tax" bill in Washington D.C. now. House Bill: HR25 and
Senate Bill: S13. HR25 was introduced by former Georgia Congressman John
Linder who also coauthored two books on the subject with national talk show
host Neal Boortz.
www.fairtax.org