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I HATE Tax Brackets!!!


Z71_Denali

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i was using TurboTax's TaxCaster to forecast my tax return for this year... all i have to say is i hate the tax system!!!

 

my wife and i get taxed in the 25% tax bracket out of our normal income, but filing jointly puts us up into the 28% bracket... add to that, our income is too high to deduct the last of our student loan interest, as well as medical expenses or IRA contributions!!!

 

i told my friend this, who's a financial advisor, he said, "Congrats on being successful!!!! You get a swift kick in the nuts from Uncle Sam!" :loser:

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You realize that a) your effective tax rate ( what you actually pay) is most likely no where near 28% right? B) millions of people would like to have this "problem" and c) the 28% tax is only applied to the amount that pushed you into that bracket.

 

But, I will repeat what your advisor said, Contrats on being successful!!, now pay up! haha

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Yep you only pay 28% on the amount over the threshold. The worst part though is no longer be able to claim certain deductions. Also if you keep earning more you will be introduced to an even worse monster called the alternative minimum tax. :willy: Kind of detracts from the incentive to work hard and get rich doesn't it?

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You realize that a) your effective tax rate ( what you actually pay) is most likely no where near 28% right? B) millions of people would like to have this "problem" and c) the 28% tax is only applied to the amount that pushed you into that bracket.

 

But, I will repeat what your advisor said, Contrats on being successful!!, now pay up! haha

 

Yep you only pay 28% on the amount over the threshold. The worst part though is no longer be able to claim certain deductions. Also if you keep earning more you will be introduced to an even worse monster called the alternative minimum tax. :willy: Kind of detracts from the incentive to work hard and get rich doesn't it?

 

 

yeah i realize that... but now we have to change our W-4s so that more is taken out and we can estimate a $0 tax return next year.

 

 

i shoulda listened to my dad last year when he told me to file as "Married, but withhold at higher single rate"... WTF did i get married for if i can't take advantage of the tax cut? :D

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Last year I worked 40 hours a week, almost every week and got back a little over a hundred dollars.

 

Be thankful for what you get.

 

 

How many deductions did you claim?

I work +/-50hrs per week and owe at the end of every year. It's because I don't claim deductions in order to owe just a bit every year if possible.

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Not to add fuel to the fire but.... A few years back I worked at a payday loan/ check cashing place in metro Detroit and you wouldn't believe the tax refund checks I would see. Coming from a hard working middle class family It was a shock I had no idea they printed return checks that high!

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if you get a return check, or you owe money each year, it just means you're not filing your W-4 correctly. thats the case with me. the point is to have a $0 return every year (of course you can't predict that down to a single dollar). if you get money back, it means your giving the gov't too much money in your paychecks, and they're just giving it back too you without interest. if you owe, then your not having enough taken out of your paychecks. that goes for all income levels. and it gets more complicated with 2 earners, multiple jobs, alimony, etc ... thats what the worksheet on the back of the W-4 is for. i know that now, and i'll be kicking myself in the rear for it April 15th!

 

turbotax as some pretty neat calculators to help predict your next year return, and what you should be withdrawing in your W-4

TurboTax® Free Tax Calculators, Free Income Tax Estimators, Tax Guides, Tax Tips

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if you get a return check, or you owe money each year, it just means you're not filing your W-4 correctly. thats the case with me. the point is to have a $0 return every year (of course you can't predict that down to a single dollar). if you get money back, it means your giving the gov't too much money in your paychecks, and they're just giving it back too you without interest. if you owe, then your not having enough taken out of your paychecks. that goes for all income levels. and it gets more complicated with 2 earners, multiple jobs, alimony, etc ... thats what the worksheet on the back of the W-4 is for. i know that now, and i'll be kicking myself in the rear for it April 15th!

 

turbotax as some pretty neat calculators to help predict your next year return, and what you should be withdrawing in your W-4

TurboTax® Free Tax Calculators, Free Income Tax Estimators, Tax Guides, Tax Tips

 

Ditto! Why give the Gov an interest free loan when you can get that money in your paycheck during the year when you need it. You could take the extra cash and put it in savings and make an extra buck or two.

I do around 8 exemptions and still wing up getting a refund. The goal should be to get nothing back and owe nothing.

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28% eh? I wish. Come live in NY state the land of the over taxed. Between federal/state I drop about 35% of my income off the top and run a 8.5% sales tax on purchases. Gas taxes here I believe last number i heard are something like 31 cents on every gallon. The list goes on.

 

Moral of the story..when you think you got it bad someones always got it worse LOL.

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Wow i wish 28% seems cheap. Since i run a business Taxes are a very sore subject with me. Infact, i moved my business over to Pennsylvania just to escape NJs ridiculous business taxes and requirements. Cristie was for businesses and promised that he would do everything in his power to keep from losing more small businesses....well i haven't seen anything.

 

Once taxes, unemployment Workmans Comp, Liability insurance etc is added i pay 22.354% of my/employee paychecks. Then i get taxed in the 25% personal income tax. Then my business gets taxed 39% on NET INCOME. With a flat rate tax i would loose all incentive to run a business. My Vehicles are all in the business name, leased so it comes right off the top of my gross, Office Rent fuel, oil, adams etc. So it cuts out more then half of what i Owe uncle same.

 

People say that all business owners are rich are insane looking from the outside in. The reason why us business owners look rich is because we might as well go and spend the money on "Business" necessities like vehicles and offices otherwise that money is going right to uncle sam. :willy:

 

BTW: I live with my parents, As of right now there is no way i could afford to be out on my own. So, you guys thank your employer. When you are begging for a raise and think your getting screwed your wrong. To run a business takes ALOT of money, infact when it is all said in done my employee's are making more money then I am because I am trying to re-invest into the business and save so i dont get screwed again if the economy tanks again.:willy::willy::willy:

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Agree with Brandon and Paul. NE US gets hammered. I'm paying almost 40% in personal taxes, and our businesses are getting hammered on the way in too. Where's my money go? There are barely any roads I can drive my car down. Something's gotta change and the theives in office now aren't going to change.

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Agree with Brandon and Paul. NE US gets hammered. I'm paying almost 40% in personal taxes, and our businesses are getting hammered on the way in too. Where's my money go? There are barely any roads I can drive my car down. Something's gotta change and the theives in office now aren't going to change.

 

Thats my whole issue. I wouldnt have as much of a problem writing that check if i knew where that money was going. Im looking out of my office window now and see a pot hole someone loses a tire on atleast once a week. I drive to the other side of town where there are projects and every single one of them are in a gang selling drugs and on welfare (that is a fact in glassboro) That got us a couple murders over the years of innocent college kids that happened to be in the wrong place at the wrong time.

 

I just dont see where my taxes are going for good. We have 500,000,000 just handed over to solyndra by our corrupt administration. We have 1,000s going to tea and coffee for congressional meetings. Hemoraging money left and right to pay each other off. We have Billions out for alternative energy crap that is useless. Trillians for social programs/Welfare just crap like this that i will never get back. (There are few good people that need it and dont take advantage, its the other 98% of the others on it that urk the hell out of me:mad: )

 

BTW: that whole stimulus package...where did that money go? 76% of it is un accounted for. Ohh, that was supposed to stimulate the ecomomy too right? well i certainly didnt see a time of it and it actually hurt my business because my clientell arnt the ones that are going to run out and spend it in a downed economy. What a joke.

 

Wednesday we hit the trillion mark. Im not proud of this knowing im 50k in debt, and my unborn children are also 50k in debt. I had an opinion of this, did it count...NO. We had an Administration that had its own agenda and could care less what the people of the united states had to say.

 

Im sick of it, im a very depressed person when i have to write a massive quarterly check to our corupt government.

 

Im not pointing fingers, both sides of the aisle are to blame...Theirs just the one on the Port side that my finger points too a little more then the starboard side:help:

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I am sure tax time won't be fun this year. Sorta out of the norm for me.

 

#1 I inherited some money when my father died. I had it taxed already. Hopefully enough.

 

#2 We now have a rental house.

 

#3 I am also the executor of my father's estate and the trust account is in my name. So that is a completely different tax return.

 

#4 I also need to file a tax return for my Father.

 

I am going to pay an arm and a leg this year to our accountant. smiley_emoticons_hangman.gif

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I know but it is something that we have to live with. The last several years I have only received back less $100, which is a good thing.

 

 

 

 

 

I am going to pay an arm and a leg this year to our accountant. smiley_emoticons_hangman.gif

 

 

You will pay it to the firm......the accountant does not get all of that.

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