Well today is the day tax returns are due...how did you do this year?
Unexpectedly I owed several grand and am very unhappy.
Was a little concerned when she had to tell me how much I owed. Good news is I had a great year!!!
Beats the alternative.
Getting a few hundred back means that you loaned the US treasury money, at zero interest. :-) While savings accounts don't exactly have great returns these days, there still must have been something better to do with your money than let the treasury use it for a few months. :-)
I hate people who feel the need to make this comment.
Nice to meet you too.
Every year I see people treat their tax refund like a windfall bonus, seemingly unaware that they're spending their own money that has been withheld from them. Entire industries revolve around this practice (I'm looking at you, 'Instant Refund' tax preparation places).
Every year I wonder if those people would make those same purchasing decisions if they'd saved the money on their own. Maybe they would have, or maybe they would have budgeted more toward savings, or fixed the leaky faucet one month earlier, or whatever the case may be.
The comment to which I applied suggested an incomplete understanding of these issues, so I replied in order to offer advice not only to the commenter but also to the rest of the community.
If this somehow offends you -- well, I've been hated for worse.
Just is 100% accurate and I don't want to lend the government any of my money. However, most people are terrible at budgeting and saving. A refund becomes a forced savings account at 0% interest. Further, since most people have very little savings, it's much safer to over withhold and not be surprised to owe $2k you don't have.
for you because you can't manage such a difficult task. Maybe you should send them all your money and have them send you a weekly allowance so you can't over spend.
Many people would be better off. People's poor financial decisions are the reason you have IRAs and 401ks. People couldn't save so the government had to give incentives for good behavior. Again, I won't give the government a dime more than necessary, but refunds help a lot of people save.
dig a little deeper on that history, and the reason the goverment created IRAs and 401(k)s was becasue corporations stopped providing their employees with pension plans.
I like using my tax refund as a savings mechanism. I usually receive $2000-3000 back at the end of the year. With current savings interest rates,if you put that money in a savings account for less than 12 months you would literally earn less than $2 dollars. I understand there are other things you can do with it, but acting like its the worst financial move ever it absurd.
Also, I don't really see the anti-government point of view for holding your money. The US government is the most secure lender in world history, and I am a citizen of this country. It's fine with me.
Or you could put it in a RothIRA low cost stock index fund and potentially earn 7-10 pct tax free
For sure. That's a great idea for some people. But personally for me, I already contribute to a personal Roth IRA monthly, along with my work 401k. I like using the tax refund to have liquid cash for house projects, vacations, etc.
I think you mean the us government is the most secured debtor in the world. Even so it isn't a great financial move to let someone hold your money interest free.
Try holding on to your tax payement for one year and see if the IRS won't demand you pay some interest or a fee for a late payment.
+1 pragmatic perspective
-1 smug delivery
NET Zero want to meet you in real life
....so I guess you would have been fine having Bernie Madoff manage your savings!
I wonder what percentage of the population actually waits until tax day to do their taxes. I do mine in Feb and get it over with
File an extension every year because we present challenging situations to our tax folks. I'll be deadling with tax nuances, which I dislike, at least until June and sometimes into October.
Right there with you my friend. Not fun :(
Every year waiting on K-1's.
Add me to the list.
Yup. Why wait? It makes no sense. I get my W2 the first week of February every year and then do the return within a week.
the reason to wait is simple, I owe a lot of money and I'd prefer to delay that as long as possible. Further if you own REITs or MLPs, K1s can show up in April. I'd prefer not to pay early and still have to file an amended return.
But yes, if your return is a W-2 and nothing else file immediately and get your money back.
I get your point, but would still want to pay that and just get it out of the way.
I can't file properly until I've received all K1s and 1099s from investment holdings. Those show up in April so I don't think about taxes until April.
Yeah, got my last K-1 on Sunday.
I'm owed a refund and am pissed that I gave Uncle Sam an interest free loan. My accountant always wants to pre-pay my state refund for the next year and I don't know why.
Pre-pay a refund? Unless your state gives you a bonus to do so, that's madness.
By the time I get my taxes done in mid-March, my refund wouldn't arrive much before the April quarterly payment for 2018 is due, so I just apply to that payment.
I assume at some point the government will get mad at me, but I owe every year and every year I'm provided with the quarterly prepayment slips. I disregard them every year and pay large sums on the last day possible. I assume the government cares to pursue the millions owed to them and has no time to get upset about interest on tens of thousands that I pay late.
since my federal refund was <$40.
If you are not willing to pay for it, you don't really love it.
Then 47% of Americans don't really love it.
Willing and able are not the same thing...
Half the country is not "unable". No way.
Everyone except the truly destitute should pay something.
Government is not free. It has a cost, both financial and otherwise.
If government if free for half the country, guess what they want? More government.
Why not? It's free.
If you are able to buy that 3rd flat screen TV, you are able to help pay for the level of government that you decide to put into power.
You're oversimplifying. Everyone pays taxes.
I'll stop. I don't want to start treading into political waters.
I'm not anti-government, I've worked in 7 different Federal Governemnt agencies. That has given me this perspective:
I don't hate the government, I just want it to do half as much, twice as well.
Amen to that
Then you need to go outside your bubble and see what is happening. 15% are at or below poverty level. Double that number for people who are within ten thousand of that and add baby boomer retires and you get almost half who do not make enough to pay federal income tax.
Still, these people pay sales and local taxes and when you add those taxes and fees, the poor end up paying more in taxes than a typical hedge fund manager.
Taxman did some serious damage here also, but me or wife don't really have any serious deductions, so...
My problem as well
Doing something you "love." Any equipment purchased for the business can be deducted except for the portion utilized for personal use. And that's a gray line and you're basically on the "honor" system.
So if you like cooking, become a "caterer" on occasion and deduct the cost of your kitchen equipment dedicated to food prep as you see it. Become a "dj" and deduct the cost of equipment and music. Become a "consultant" in your field, and your wife as well.
You can also visit Salvation Army at least once a year and discard your old stuff. SA will give you a blank receipt if you ask and you can fill in a reasonable value for each item donated.
Plenty of ways to reduce your tax burden but most of them require some real work to avoid IRS scrutiny.
Those deductions only work for a few years (3 I think). At some point the side hustle has to make money or be dissolved.
You can also claim unreimbursed work expenses for a bunch of random stuff. Again, it gets grey but the government doesn't care about you unless you're self employed or making millions.
So roll up the business and start anew. Transfer assets or donate them and purchase new ones. Find a local artist who will make a unique piece of art at low cost and hold onto it. 5-10 years later, have the item appraised and donate it to a charity auction. Acquire a used car for less than book value and donate at full book value. I did state you have to work a bit to reduce the burden but it is possible for middle class and above to pay less once you make tax reduction a part of every day life.
That's some aggressive scheming that probably won't work. Buying a car for 5k and donating it for 20k would be break even if your top tax bracket is 25%. It's worse than break even after transaction/holding costs and a discount rate.
I suppose the painting thing could work but it relies on you being a fantastic art investor (even if you assume the appraisal is falsely inflated for the auction). If it's that easy, quit your job and start flipping art.
As for the roll up shop and start a new business, that's not so simple either. a side hustle by nature isn't an S or C Corp. you can't transfer between two side hustles that have no legal structure.
You can buy a bullet-riddled seized Beamer for less than 10k when it's worth a lot more even with the holes. Been there done that. The art is hit or miss but we've done well there. I'm not giving any specific advice, just emphasizing that there are a lot of options out there. Have you ever taken the home office deduction? Me neither, it's one of the most cited reasons for an audit. I've been audited, she's been audited, and we've always walked out with even more money in our pockets because that notice made us even more shrewd in terms of compiling the tidbits. Your mileage may vary.
I have taken the home office deduction, but it was legit. I was a1099 consultant and worked primarily from my house. I'm W2 now but still declare some home office expenses as unreimbursed business expenses. It doesn't really matter because I get hit with AMT every year. AMT is also why I'd never bother with car/art flipping/donating. It's a lot of work and I wouldn't get to take the deduction as expected.
I guess your plans could work, it just seems like you'd be better off selling those cars for a profit instead of donating for a deduction. Anyway, I have no issue with those tactics, so if it works for you, good.
My mgopoints were taxed this year. Or at least it feels like it.
I guess if you pay a lot it means you made a lot.
...that will reduce your taxes!
Yeah, WD gets a big refund each year.
If you owe taxes or get a refund you need a new accountant. I always target a +/- of $250.
Yeah, me too. I want a nice little $200 refund to make me feel good about the surprise money, but no more than that so I don't feel like a sucker.
But I don't ever want to have to write a check, even for $20. That's a defeat.
How is writing a check a defeat? Paying a penalty is a defeat. Writing a check just means that you held onto your cash a little longer -- I don't see a problem there, as long as you're expecting it and plan properly. I'd hate to get hit with an expensive bill that I didn't anticipate. :-)
Most of it is that I'm just plain lazy and don't feel like writing a check and figuring out where to send it.
They take enough of my time already just filing the taxes.
I like to draw the line.
Not true. If you owe money but it doesn't include any penalty then your accountant has done a great job. I would rather minimize the amount the IRS takes each paycheck, even if it means a large payment at end of year.
If you have the ability to have your taxes come out at +/- 250 (without sending additional quarterly payments) then you shouldn't use an accountant at all because your scenario is pretty simple.
Of course - if you don't need an accountant then don't waste money on it. Regardless, though, the goal should be to pay the minimum amount each period/quarter to avoid interest or a penalty and pay the remainder at the end. Not some made up +/-250 rule. There are reasons to deviate from this, such as not wanting to have to worry about putting money aside for future tax payments.
You all do know your tax return isn't really due until October 15th, right? Also, if you owe taxes, then pat yourself on the back for not giving the government an interest free loan.
Your tax return isn't due, but your money is. If you don't owe, why wait until October?
Think how much interest you could be earning on that few hundred dollars over like 6 months...at least 50 cents. Well maybe. Probably not actually.
The child tax credit disappears when your kid turns 17, not 18.
Teenagers never miss an opportunity to disappoint.
stripping away that last, tiny bit of innocence they retained after 10 years or so of watching PornHub and ISIS beheadings.
and the fruit of vigilence pays off.
The child tax credit disappears when your kid turns 17, not 18.
I had to post it twice.
I'm sure we can do worse than talking about tax day...
Yeah, let's talk about Speight vs. Peters instead.
I heard that Peters got a bigger refund than Speight, despite everybody thinking that Speight had the system down and would get the bigger refund.
I'm thinking that Peters is the go to guy now, but others think one good filing season is too small a sample size and Speight's refund consistency over the last couple of seasons is what really counts.
No taxes = No America. Can't have one without the other.
Damn, we have a shitload of America.
We could still have America with much fewer taxes though
Aircraft carriers are awesome. And we NEED at least 10 of them. 12 would be better.
/battleships are way cooler though. We should talk the navy into building some new ones.
I upvoted you because I think you are being sarcastic. I think we need half the military that we have. And zero battleships. A battleships is nothing but a drone target.
Hookers and blow tend to give bankers cutting edge snark....battleship snark in this case
Alternatively, we could pay down some of our country's debt.
We're like a guy who runs up a huge credit card statement and pays the minimum each month.
And we borrow the money to pay that minimum.
But we didn't have a federal income tax, with a few war time exceptions, until 1913.
Standard extension filed, along with the standard check for thousands of dollars.
if bank_account > 0
then execute TRANSFER_BAL_TO_UNCL_SAM
until IRS_SATISFIED = TRUE
So the guy is getting back $10k in taxes. I know he is just putting out the bait but I have to bite anyway.
"You know you are giving the government $10k of your money to hold onto for nearly a year."
"No we do it on purpose so we get a huge reurn for my birthday (In April)"
He also doesnt wear a seatbelt and just hopes someone says something about it.
Anyway sometimes being the best at arguing makes you do dumb things.
I don't have Spartan friends
To be fair, sometimes people get returns due to unexpected life events. And some people just find it easier to pay more so they don't get audited. As someone who has had to write checks to the government the past couple of years due to income changes, an interest-free loan to the government isn't always the worst.
Well, I got an automated call from the "IRS" saying that they were bringing a law suite against me. Spelling there is correct. Law suite. So I guess I'm scared?
Are they going to build it on your property?
A lot of law firms occupy a suite in an office building. So they're bringing an entire firm against you!
if it's a threatening phone call from the IRS, it's a scam even if correctly spelled. IRS doesn't make threatening phone calls, it sends threatening letters. I had to go over and over and over this with my parents, who came damn close to sending one of these scams money last year. Evidently, this scam works frequently enough to make the calls worth it.
It may change. In one of the recent budget compromises, Congress essentially told the IRS to use debt collectors, a practice they had eschewed in the past so as to not cause confusion. I don't if they've started actually using any at this time, but when they do, I imagine some phone calls will be real, opening the door wide open for scammers.
I usually have my family's preparer work his magic for a reasonable price, but this year was a very simple return, so I e-filed for free. H&R has a very well designed website, provided me with a link to last year's info via the IRS website, and I got my return through direct deposit. Did it on my phone in my underwear, in about a half hour, can't complain at all.
and even on the "simple" years I happily pay him because I also call him on the phone half a dozen times a year with tax questions and get responses within the hour.
Worth the $ for me.
Computer died just as I started using Turbo Tax. Switched to iPad but it wasn't as easy. Had to send money., too. Not the best tax season. But hey, went to Spring Game on a beautiful day so the week-end wasn't an entire loss. I've coined this the year of The Agony and the Ecstasy.
I actually worked for the IRS as a tax compliance consultant - sorry guys - for a couple of years.
The first thing you learn, beside the fact that a lot of people cheat on their taxes big time almost as a sport, is that the tax code is so complicated not for economic reasons, but because it's the knobs and levers that congress uses to shape / cajole the behavior is wants.
If they just wanted to optimize income while maintaining economic growth, it could be a ton simpler.
My favorite data element they used was the "Dangerous Taxpayer Indicator". It has to suck to be the first guy to figure that out each time.
The actual IRS people are pretty apolitical in general. Some are quite nice. They know you hate them, but it's just a job.
used to work for IRS. Most disheartening part was seeing all the tax cheats get away with robbery while everyone else pays for it. I actually liked my job, just got sick of the "I pay your taxes" crowd
but if we had 10x more of them, we might very well get to pay less taxes. Every IRS inspector you hire brings a hell of a lot more back from cheats than their salaries and benefits cost. If compliance were higher (which could also happen from simplification), revenue goes up without having to raise rates. You could even go revenue neutral and drop the rates.
But it's always easy to make the IRS the whipping boy (and I would love to brandish the whip sometimes) but in truth, it makes no sense to cut their staff. Only ends up hurting all the people who don't cheat.
Mine were meh, did them back in February though. Why wait until April?
If you're getting a refund, do it early.
I always wait until the middle of March. The one year I filed in February, I received a corrected form on March 1st, and had to refuel. Never again.
Income tax was started by the privately owned "Federal Reserve Bank." It is actually unconstitutional that this secretive organization exists. FRB also earns interest on all money in existense. To learn more ready The Creature From Jekyll Island. Good book.
Ugh. One of these guys.
1. income tax is not unconstitutional. It's the 16th amendment and existed during the civil war long before that. By your logic, women voting is also unconstitutional.
2. If the FRB is privately owned, who owns it?
2. Someone named "Private". Personally this would have been better if it was pirately owned.
FRB is unconstitutional. You can look up who owns it but it's speculative until it's revealed. This is the most powerful institution in the US, way more so than politicians.
The old "just Google it and you'll see" argument
He can't tell you himself, otherwise Big Brother would get him
#2: Colonel Sanders.
the correct answer is The Queen, The Vatican, The Gettys, The Rothschilds, AND Colonel Sanders before he went tits up.
I hated the Colonel with is wee beady eyes, and that smug look on his face. "Oh, you're gonna buy my chicken! Ohhhhh!"
Not only that, but he has cornered the market on CD sales in Indonesia!
What a sneaky SOB.
In China, people get married in KFC's. It's a big deal.
Most years, I owe at least a little to both the feds and the state of Michigan - usually no more than a couple hundred in each case. My problem is that I am a procrastinator since I typically don't manage to file my returns until the first week of April. Part of that for me is that I have side things going on in addition to my day job, so the returns get a little....weird, I guess.
Owed a fuck ton. Paid it. Don't wanna talk about it anymore.
My brothers ex makes more a year off her returns than she does a job. She is single with like 8 kids. His two kids with her live with him. Fuck you IRS. How does that bitch make $10,000 a year from the gov't by paying in $890? Ridiculous.
Doesn't make the rules, genius. call your Congressman
given the "no politics" rule on this blog, I wasn't going to go into the finite details of the House, or occasionally the President, putting forth bills that Congress either passes or nixes, and how that change affects my overall tax rate as well as my personal view of US Federal tax codes, because it would be a chore to do so without some semblance of politics making it's way into the post.
Also, it would take way longer and be less interesting to read (more like a civics lesson instead of an anonymous internet post).
However, I'll try to adhere to your standards of presenting purely factual information in an asinine rant, as I am sure you hold yourself to the same standard in your posts.
With 80k employees, many people have worked for them or have a close family member that does or has. My wife currently does, and it's a natural defense mechanism when someone tries to blame the IRS for a stupid tax rule to point the finger at Congress, who actually does. There are enough people in this country that actually think the IRS does these things that the reflective correction is often necessary.
At the end of the day, the IRS is just a bill collector. They don't create the bills.
This feels either like immense hyperbole or you have left out a bunch of relevant details.
is somewhat true, though i can't vouch for the numbers. google tells me this:
For tax year 2013, the maximum EITC benefit for a single person or couple filing without qualifying children is $487. The maximum EITC with one qualifying child is $3,250, with two children, it is $5,372, and with three or more qualifying children, it is $6,044.These amounts are indexed annually for inflation. On December 4, 2014, The Atlantic reported that the EITC will reduce revenue to the federal government by about $70 billion in 2015.
it is for 'modest' income workers and in effect is a fairly large yearly one-time welfare payment to people who didn't pay anywhere near that amount in taxes. EITC is a bit of a misnomer.
No, I get how the EITC works here. I just don't know how you can get more money back than what you make in a year. I'm not a tax agent, but the government doesn't usually give you a surplus check from credits; it just reduces your taxable income.
Deductions reduce taxable income. if you itemize you essentially get a rebate of whatever bracket you're in at the top marginal rate. I'm somewhat simplifying since the are limitations. credits are better because they just essentially add a dollar to whatever refund you'll receive regardless if you itemize or not which most lower income people do not. sign me up for some credits!
That is where you are wrong. There are two types of tax credits, refundable and non refundable.
Refundable tax credits are treated as a payment and if the total amount of refundable credits is greater than your tax liability it will result in the IRS making a payment to you.
Non refundable tax credits can only reduce your tax liability down to nothing.
Yes, there are many people where the IRS writes them a chack, not just gives back over-withholding.
Understood. But Bronxblue's question was about credit surplusses over the top of your tax liability.
I didn't realize that with the child credit. I assumed in this context you only reduce income from the credit. I stand corrected.
I still find it hard to believe a person with 8 kids makes less than $10k a year, unless the IRS handles alimony, child support, etc differently.
99% hyperbole and generalization as I was half-heartedly ranting. It's a blog. Obviously I don't know her tax information, nor do I care. But yea, she makes more $ off the govt than she makes from her job, according to my nephew.
I have four kids under 17 and I don't make a lot of money, so I never owe and I send mine in pretty early. Usually. This year I procrastinated on my state taxes for no reason, but those are now in as well. I use Taxslayer (because they had cheap efile options) and now that I've used it for a couple of years it's a cinch to do. I feel like it's too easy when I'm finished, a sharp contrast from when I was filling out my 1040s by hand.
Our national tax system is a disgrace- no other nation makes it so complicated and filled with special interest givaways. Taxes should be simple- not stealthy
See my post above.
They could make it a lot simpler in relation to what a tax code is actually supposed to do - provide for govt income while still maintaining economic growth - but that's not what they are trying to accomplish at all. And so the current tax code looks like the spaghetti mess it is. On purpose.
Agreed it's officially sanctioned patronage and a big reason why tax reform is going to be so difficult. Everyone wants their special breaks maintained even if, under a simpler system their liabilities would be the same. As always, like with health care, it is much easier to deal with the devil you know when it comes to something this deeply personal. A new system might be better, but change is scary and all you have to do is find the one person screwed by the change and shout to the heavens about that poor person and everyone's security gland kicks in and demands that nothing gets changed.
Very true. It's going to be ugly.
I'll bitch about tax breaks for what I think are superfluous special-interest reasons, but will I be willing to give up the home mortgage interest deduction? Why should that be off limits?
My sister-in-law works for the IRS and it's nauseating to hear the stories of her co-workers' gross incompetence on the job. Amazing the jobs some people get and retain that don't deserve them. I guess it wouldn't be so bad if it weren't for the knowledge that they are directly responsible for collecting the revenue that keeps them employed.
Don't worry, they don't get to keep any of it.
This year I received a substantial refund, and I am not happy about it. Usually I end up owing a small amount to fed and state. Made adjustments to withholding for this year. Also, I am in a profession that is a big target for the "fake tax return to collect a refund" fraud scheme, another reason to file early.
might be time to hire an actual accountant because I'm giving the government a substantial interest free loan. Clearly I'm a crappy accountant
I probably purchased a couple of cruise missiles today.
Our tax system sucks. Our tax dollars are mostly wasted. But, opportunity to earn more, give more, and watch more wasted abounds.
God Bless the USA!
for the 35% of Americans who don't pay taxes.
They should call it "Bitch about First World Problems Day."
I TurboTax it in about two hours the first week of March or so every year. It should be easier, but that's the price of letting lobbyists write the tax code. If people actually wanted a simpler code, they would vote that way. They don't.
I'm fine with funding air traffic control and roads and schools and keeping disabled people from going homeless. Not thrilled about all the Joint-Strike Fighters and security for every weekend in Mar-e-Lago and whatnot but we don't get line-item vetoes, so whatevs. I've spent time in countries with minimal government. They are not good places to live.
Our military capability needs a major upgrade (even the newest planes not called "Raptor" or "Super Hornet" are 25+ years old). But a trillion-dollar price tag on ANY aircraft is absurd. Lobbyists, indeed.
Thsy are smart. They spread the construction and maintenance across hundreds of congressional districts so that no congressman / woman ever wants to say no.
It's very hard to kill a runaway program. Even ones the military does not actually even want.
Love that show.
Presidents travel. Some more than others. Some just to play golf on the tax payers dime. It's always interesting to see how some complain about what one Presidents does but never about the President they voted for. The bottom line is both parties are whores and want to abuse the tax payer. It's time for another revolt.
Wait, I thought the current POTUS was not receiving a salary?
I don't know if it counts if it's in Rubles though /s...kinda
President Trump is receiving a salary. He donates the money. He donated to the National Park Services. A president also receives many perks on the tax payers' dime.
But what is sad is that everyone is focused on the PResident and not the bloated government that has over regulated, over taxed and over indulged since 30's.
It's a behemoth that needs a serious restructuring.
goes to welfare programs we call medicare, medicaid, social security, fed gov't workers, etc. not saying it's all bad, just saying the military isn't what's blowing the biggest hole in the budget. this is not a political post either, just an informational one.
+1 informative, but...
Federal spending =/= tax revenue.
Federal spending is much, much more than revenue. Medicare, Medicaid are a huge portion of "non discretionary" spending set to increase as the baby boomers retire. Fun times.
Non-defense discretionary spending, in other words, all the things people think of when they think of federal workers actual doing things via the agencies besides the Pentagon, is 16% of the federal budget. The Pentagon's budget is 50% of discretionary (non-interest, non-entitlement) spending.
but that wasn't the question we were kicking around. and i guess you could make an argument that providing for national defense to maintain sovereign national status is more 'non-discretionary' than the wealth transfers we call the various medicaid/care/social security, etc.
spending, but I think we're of a mind on the real budget pathway to future ruination going through medicare/medicaid/SS. Those programs (Medicare, mostly) are chewing up the remaining part of the budget and will swallow them entirely before too long. But there's a reason they call SS/Medicare the "3rd Rail" of American politics.
and i would love to hear a solution too, but that probably would put us in the 'politics' zone which this thread has done a great job of avoiding in large part.
I'm on a payment plan and should be clear by 2020
You're worth 40 billion what does that payment look like?
Who cares about taxes? I did mine over a year ago.
Obamacare tax kicks in on investment income over half a million. Either you are lying or you won't get much sympathy from the board.
a certain income level then you can be subject to the tax. Also other increased taxes on higher income taxpayer.
So, I was wrong. The tax kicks in on income over 250k at a rate of 3.8%. I guess I might have paid this (the rules are a confusing combination of AGI and investment returns) without knowing. However, on a half million of AGI, this tax would be less than 10k at worst.
Paid about $3k. Would have been more but had a kid, so some tax breaks.
It's life. I'm not crazy about paying taxes if they are spent recklessly, but part of being a citizen is helping finance the country, and within reason I'm okay with it.
I assume that is 3k on top of whatever was witheld. Your total tax liability was more than 3k.
That is the nasty part of witholding in my mind. To those getting refunds you are getting money back. To those paying you don't feel the full weight of your tax liability in a single check.
Yes. I had to pay an extra $3k. It was mostly my fault; both my wife and I changed jobs in 2016, so we didn't coordinate properly with allowances and changes to health care.
And to me, having the money in hand at the time was more beneficial than getting a check back in April, since we had expenses to deal with at the time. But yeah, it definitely hurts.
By the way, this is probably the most political thread I've seen around here in some time. Lots of people hammering on the same talking points my grandparents forward me in emails.
I was actually surprised by how restrained it is. I expected fireworks. Lots of fireworks.
Good job everybody (so far).
I guess I read the first couple of posts on the phone dealing with missles, trips to Hawaii, etc. and assumed that was the rest of the thread.
Taxation is theft.
As is inflation. Somebody gets that money and it ain't you or me.
I get all of your money lost due to inflation. Please don't tell anyone.
The owing streak finally ended for me this year! I feel your pain, OP.
But I'm so relieved this year. I even put it off until Saturday because I was expecting the worst.
Forgot I had to claim it on my federal return this year. fuckers. I get it, but damn it. at least CA didn't tax my wife's unemployment or hit us with AMT. But hey the weather's nice and the dams are failing.
and when we lived there i missed real weather, like, UP weather. i can enjoy a sunny day like anybody else, but for so many reasons michigan is the homing beacon.
your avatar pic = your boat on the colorado river?
Never having to deal with snow in the winter with mild, low humidity summers by the beach in the summer is indeed much nicer than Michigan weather.
Where you at?
and fall. and spring. and freeways where you can drive more than 7 mph. and the fact that i can swim in front of my office 4-5 months/yr. no sharks. no salt.
and some of us are not so fond of earthquake, flood, fire, and riot season. and i was always hot in california. i lived there for years. i understand the attraction for some, but we couldn't live our lives in anywhere near the fashion we do now if we'd have stayed.
I'm in LA, Long Beach specifically.
Snow is nice to visit but I'm happy never having to shovel my driveway or deal with any other hassle involved with it. The snow wasn't even pretty 95% of the time when I was in Ann Arbor, it was usually a grey sludge. We have Spring and Fall, we just skip winter. I'm 11 miles from work, almost all on freeways and it takes me 20 minutes to get there. I've never seen a shark and lake beaches do not compare to ocean ones. In 38 years never been anywhere near a flood, fire, or riot. Last earthquake that did any damage at all was in 1994. I loved my four years in Ann Arbor but I do not miss the weather. I told people the weather was great for the two weeks at the start of the school year and at the end but the seven months in between was terrible, and it was. Not seeing the sun for a month and then it finally showing up only for you to not even be able to feel it's rays and what's going on, it's colder now?... is depressing. Plus there's better skiing two hours away from here than there is in Michigan, the lower peninsula at least (can't say I know anything about the UP besides it's cold and barely inhabited by people straight out of Fargo). LA is expensive, can't argue that.
Big 4 tax accountant here. Good to finally be done with busy season. It's entertaining to read what other people think of tax season - the 1040s I work on are obviously way different than the average taxpayer's.
I did returns this year for my grandmother and another friend in Turbotax. They took way more time than they should have for as simple as they were.
You are a free man now.
You should chill out and catch your breath.
Go to Rome and hang out with the team.
Come October, I do a calculate on my taxes to see where I am trending and if I'm getting a big refund, I stop having taxes taken out for the rest of the year. Helps with Thanksgiving travel and Christmas presents.
I'm getting almost 10k back this year. A financial silver lining to my wife leaving her job to stay home with the babies half way through the year! Sure didn't think it'd add up to almost 10k though. Not like it would have done anything sitting as cash in my portfolio most of the year anyways, it's just found money as i'm concerned and makes me worry far less about how close my income has been to my expenses since down to one income. Sheesh, kids are expensive, so is CA.
My stock index fund made +10 pct the last 12 months...just sayin
You're doing a lot better than my Morgan Stanley guy, I don't think I've done >10 since before the crash! I'm just saying I keep a certain decently sized chunk liquid at his advice and who knows how long any extra monthly cash would have sat there before being invested.