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(Christian Science Monitor)   Were you planning to file your taxes early this year in hopes of an early refund? Yeah, about that   (csmonitor.com) divider line 128
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14158 clicks; posted to Main » on 09 Jan 2013 at 7:21 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-09 07:24:58 AM  
Considering I usually don't have all of my tax documents in my possession until towards the end of January, isn't this kind of normal? Or is this just another manufactured outrage crazy Teahadists are going to blame on 0bama?
 
2013-01-09 07:27:27 AM  
If you're counting on your return to pay holiday expenses, you should probably adjust your withholdings and put the money away over the course of the year. Unless you're not very good at budgeting, I guess.
 
2013-01-09 07:28:23 AM  
Oh, the end of January kind of late... Can you even get w2s or other needed tax docs before then?
 
2013-01-09 07:28:47 AM  

Dog Welder: Considering I usually don't have all of my tax documents in my possession until towards the end of January, isn't this kind of normal? Or is this just another manufactured outrage crazy Teahadists are going to blame on 0bama?


I agree. I always wait until at least mid-February to make sure I got all my forms. I can't speak for every tax-filer, but I never knew anyone who filed before Feb.
 
2013-01-09 07:29:44 AM  
I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct
 
2013-01-09 07:32:38 AM  

Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct


Financially responsible people like you should be punished with higher taxes so irresponsible people like me can get more stuff!

Sadly, this is how our system works.
 
2013-01-09 07:34:09 AM  
I can never understand why it take companies 1 month to get w2 out in the 1st place. I mean how hard it is it to go into the payroll software and tell it to print out w2 for everyone on who worked there. Then stick them in the mail. But no companies gota weight to the last min to send out.
 
2013-01-09 07:34:17 AM  

Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct


Then I don't know what you're filing on your W4s for exemptions. Our combined last year was $65k with one kid and I was using single withholding for deductions. We pulled about $7,500 back. This year, I changed to M2 and my wife had more income that may kick us over $70k, but we should still should see about $3K back if my math is right.
 
2013-01-09 07:34:24 AM  

Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct


Surprisingly even the $1000 per child credit starts to dissapear at the $110k level, You have to buy a house to get a decent tax rate, ugh.
 
2013-01-09 07:34:40 AM  

Kuroshin: I miss the days of filing Single and getting a refund...


Yeah, it's fun to lend the government your money at 0% interest.

The feds ain't Elder Brother Wu.
 
2013-01-09 07:35:21 AM  

Dog Welder: Considering I usually don't have all of my tax documents in my possession until towards the end of January, isn't this kind of normal? Or is this just another manufactured outrage crazy Teahadists are going to blame on 0bama?


When it was pretty much a W-2 and a 1040EZ, I used to do it in mid-January. Now with some investments, I don't get those statements until very late in February.
 
2013-01-09 07:37:45 AM  
Going to cot my family about $7,000 more in taxes this year.

We are not rich, and are below the 250k evil line.

Thanks a lot, libs.
 
2013-01-09 07:37:49 AM  
Yet another gift from the tea party! If you have a simple tax return, kids, and need your refund, you have to wait ! Yay Murka!
 
2013-01-09 07:38:50 AM  

FunkyBlue: Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct

Then I don't know what you're filing on your W4s for exemptions. Our combined last year was $65k with one kid and I was using single withholding for deductions. We pulled about $7,500 back. This year, I changed to M2 and my wife had more income that may kick us over $70k, but we should still should see about $3K back if my math is right.


Just wait untill you hit $100k. You'll have to start paying a significant chunk, it sucks.
 
2013-01-09 07:39:29 AM  
eh, i could always use more money in hand at the beginning of the year to catch up on the last years bills. my employer always makes my paperwork available within the first 2 weeks of the year, so waiting another 2 weeks to file means another months delay on catching up on my current bills.

but, whattta ya going to do?

/married single income earner with 2 kids.
 
2013-01-09 07:42:40 AM  
Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

This is why people vote liberal. They don't make that money yet, so they don't care if other people pay. The whole class warfare system is dumb. Our tax system is the most progressive in the world, and still liberals want it worse. We need to broaden the tax base. Only when people have a stake in the game will they start caring about fiscal responsibility for the country.

If you just get free stuff, of course you will vote for whomever promises the most free stuff. Stupid way to run a country.
 
2013-01-09 07:44:10 AM  
The filing season had been slated to start Jan. 22 but was delayed by the last-minute tax package passed by Congress on New Year's Day.

Wait just a second - we're filing on 2012 taxes not 2013. Why are we waiting on them to reprogram their systems? The new laws should only effect next year's filing unless they made a retroactive law. I thought that was unconstitutional.
 
2013-01-09 07:44:24 AM  

bestialbub: eh, i could always use more money in hand at the beginning of the year to catch up on the last years bills. my employer always makes my paperwork available within the first 2 weeks of the year, so waiting another 2 weeks to file means another months delay on catching up on my current bills.

but, whattta ya going to do?


You can still file as early as you want. Just don't expect anything back until early to mid-February.
 
2013-01-09 07:45:34 AM  
4.bp.blogspot.com
 
2013-01-09 07:51:24 AM  

Fark_Guy_Rob: Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct

Financially responsible people like you should be punished with higher taxes so irresponsible people like me can get more stuff!

Sadly, this is how our system works.


Punished?  Dude, I've got three motorcycles, two sports cars, never go hungry (unless I am watching my calories), ass-loads of electronic gadgets, an awesome dog and plenty of money for taking week-long trips to Vegas.  I grew up poor, lived on the street for several years, and have been able to weather the destruction of the world economy in relative luxury.  I've got things pretty damn good.  Paying a few bills in taxes isn't going to hurt me.  My gripe is that there is literally nothing you can file (other than forcing set-dollar withholding) that can prevent you from owing cash at the end of the year.  It's just a hassle.  Oh, and that we're specifically paying more in taxes because we're married.  Dat marriage penalty...

FunkyBlue: Then I don't know what you're filing on your W4s for exemptions. Our combined last year was $65k with one kid and I was using single withholding for deductions. We pulled about $7,500 back. This year, I changed to M2 and my wife had more income that may kick us over $70k, but we should still should see about $3K back if my math is right.


0 Federal, 0 State.  Literally the maximum you can have withdrawn from your paycheck, without specifying an additional set dollar amount.

DINKs are penalized in the tax code.  We don't have a house and we'll never have a kid, so we pay through the nose.  It's all good though, since making enough money that you have to pay more in taxes is a good thing.  When we made less, we had less.  Now that we make more, we have more, and it's not unreasonable to expect to pay more.  It's still a net gain.
 
2013-01-09 07:53:20 AM  
Joke's on them. I didn't earn any money last year.

/beat the system!
 
2013-01-09 07:53:27 AM  

MindStalker: FunkyBlue: Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct

Then I don't know what you're filing on your W4s for exemptions. Our combined last year was $65k with one kid and I was using single withholding for deductions. We pulled about $7,500 back. This year, I changed to M2 and my wife had more income that may kick us over $70k, but we should still should see about $3K back if my math is right.

Just wait untill you hit $100k. You'll have to start paying a significant chunk, it sucks.


Cut down on the caviar, 1%'er.
 
2013-01-09 07:54:43 AM  

sanriosucks: Oh, the end of January kind of late... Can you even get w2s or other needed tax docs before then?


I got my W-2 from my current employer last week, actually.

My former employer probably won't get theirs out until the Jan 31st deadline.
 
2013-01-09 07:56:03 AM  

Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.


I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?
 
2013-01-09 07:57:13 AM  

Kuroshin: Fark_Guy_Rob: Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year.

Filing 0/0 isn't enough for DINKs.  Ya gotta have them withhold several hundred dollars per month as well.  I miss the days of filing Single and getting a refund...

/got nothing to deduct

Financially responsible people like you should be punished with higher taxes so irresponsible people like me can get more stuff!

Sadly, this is how our system works.

Punished?  Dude, I've got three motorcycles, two sports cars, never go hungry (unless I am watching my calories), ass-loads of electronic gadgets, an awesome dog and plenty of money for taking week-long trips to Vegas.  I grew up poor, lived on the street for several years, and have been able to weather the destruction of the world economy in relative luxury.  I've got things pretty damn good.  Paying a few bills in taxes isn't going to hurt me.  My gripe is that there is literally nothing you can file (other than forcing set-dollar withholding) that can prevent you from owing cash at the end of the year.  It's just a hassle.  Oh, and that we're specifically paying more in taxes because we're married.  Dat marriage penalty...

FunkyBlue: Then I don't know what you're filing on your W4s for exemptions. Our combined last year was $65k with one kid and I was using single withholding for deductions. We pulled about $7,500 back. This year, I changed to M2 and my wife had more income that may kick us over $70k, but we should still should see about $3K back if my math is right.

0 Federal, 0 State.  Literally the maximum you can have withdrawn from your paycheck, without specifying an additional set dollar amount.

DINKs are penalized in the tax code.  We don't have a house and we'll never have a kid, so we pay through the nose.  It's all good though, since making enough money that you ha ...


Why is it not unreasonable to expect to pay more? You use the least tax money. You pay the most. You are working so other Obama voters can squirt out kids, you pay for that.

I paid for my college out of pocket. I cannot even deduct student loan interest. My tax dollars give free money to others to go as well. Why is this in any way fair?

With this mindset, no wonder the country is failing completely.
 
2013-01-09 07:57:48 AM  
As long as I can still cobble everything together on 4/15, we're okay.
 
2013-01-09 08:03:21 AM  

stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?


We don't. Marginal rates mean we do have to pay slightly more on the portion in excess of certain thresholds. But the big jumps are actually at much lower incomes.

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Margina l_ tax_rates_for_2012
 
2013-01-09 08:05:14 AM  
My documents usually take until the 1st or 2nd week of Feb and then getting an appt with my CPA makes me wait another 3-5 days. Those w-2s always take so damn long. lazy ass HR.
 
2013-01-09 08:06:11 AM  

stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?


Because he's trolling.  The primary problem with taxes in the US is that withholdings from your paycheck don't really reflect what you make.  Too much gets withheld at lower incomes, while too little gets held as you go up.  My wife and I both claim zero exemptions, yet still don't have enough drawn against our incomes over the course of the year.

It gets especially tricky with dual-income households, because your incomes don't get taxed at the joint rate.  Being married with no kids and no house means there is pretty much nothing you can use as a deduction to lower your tax liability.  Back when I was self employed I was able to essentially negate my entire income with deductions, but that requires quite a bit of creative accounting and lots of receipts.

Our tax system is a bit of a clusterfark, but don't let Thunderpoop fool you - when you make more money, you take home more money.  Even though you end up with a (climbing) tax bill at the end of the year, you've still got more money in your pocket than the guy making less.  At the end of the day, the more money you make, the more money you have, even after taxes.
 
2013-01-09 08:07:24 AM  

LordOfThePings: stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?

We don't. Marginal rates mean we do have to pay slightly more on the portion in excess of certain thresholds. But the big jumps are actually at much lower incomes.

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Margina l_ tax_rates_for_2012


But don't you pay income tax during the year when you get your salary each week/fortnight/month? Or do you get all of your income and then have to pay in a lump sum at the end of the year?
 
2013-01-09 08:09:17 AM  

stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?


Protip: Thunderpipes is special needs.

As best I can tell, he's referring to hardship deductions that you can't take once you earn past a certain threshold.

For example, I pulled down $101k in contract work in 2010 and was unable to take a deduction on student loan interest I paid that year. Being a rational person I didn't mind, since I clearly had no problem paying back my loans and keeping myself fed that year. Thunderpipes seems to think it's a travesty.
 
2013-01-09 08:10:16 AM  

Kuroshin: stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?

Because he's trolling.  The primary problem with taxes in the US is that withholdings from your paycheck don't really reflect what you make.  Too much gets withheld at lower incomes, while too little gets held as you go up.  My wife and I both claim zero exemptions, yet still don't have enough drawn against our incomes over the course of the year.

It gets especially tricky with dual-income households, because your incomes don't get taxed at the joint rate.  Being married with no kids and no house means there is pretty much nothing you can use as a deduction to lower your tax liability.  Back when I was self employed I was able to essentially negate my entire income with deductions, but that requires quite a bit of creative accounting and lots of receipts.

Our tax system is a bit of a clusterfark, but don't let Thunderpoop fool you - when you make more money, you take home more money.  Even though you end up with a (climbing) tax bill at the end of the year, you've still got more money in your pocket than the guy making less.  At the end of the day, the more money you make, the more money you have, even after taxes.



at certain income levels, your deductions start to vanish as well. Yes, you bring more home for making more. But the extra energy and time, while watching more of your paycheck go to Obama voters makes it not worth it. You would know this if it were you.

Bit of a clusterfark? Most progressive in the world, and getting worse each year. trillion dollar deficits for a decade, and only getting fewer taxpayers each year. How is this not a complete clusterfark?
 
2013-01-09 08:10:34 AM  

ghare: Yet another gift from the tea party! If you have a simple tax return, kids, and need your refund, you have to wait ! Yay Murka!


Amazing you blame this somehow on the tea party. Boehner was asking to discuss the cliff last march. It was reid who emphatically stated it would not be touched until after the election. Sad but easy world you live in.
 
2013-01-09 08:10:54 AM  

Kuroshin: Because he's trolling.  The primary problem with taxes in the US is that withholdings from your paycheck don't really reflect what you make.  Too much gets withheld at lower incomes, while too little gets held as you go up.  My wife and I both claim zero exemptions, yet still don't have enough drawn against our incomes over the course of the year.

It gets especially tricky with dual-income households, because your incomes don't get taxed at the joint rate.  Being married with no kids and no house means there is pretty much nothing you can use as a deduction to lower your tax liability.  Back when I was self employed I was able to essentially negate my entire income with deductions, but that requires quite a bit of creative accounting and lots of receipts.

Our tax system is a bit of a clusterfark, but don't let Thunderpoop fool you - when you make more money, you take home more money.  Even though you end up with a (climbing) tax bill at the end of the year, you've still got more money in your pocket than the guy making less.  At the end of the day, the more money you make, the more money you have, even after taxes.


Oh I figured he was trolling.. but I was trying to determine why you would have to pay anything at all at the end of the year, and why your tax bill is higher than the tax taken out during the year if you have no deductions.
 
2013-01-09 08:12:59 AM  

stuartp9: But don't you pay income tax during the year when you get your salary each week/fortnight/month? Or do you get all of your income and then have to pay in a lump sum at the end of the year?


It depends on your employment structure, but most employees have withholding on every check and get a W-2 at the end of the year. It's different if you're a business owner or independent contractor where you have to do your own accounting and pay estimated tax quarterly.
 
2013-01-09 08:14:37 AM  

Thunderpipes:
... With this mindset, no wonder the country is failing completely.


You sound sad.
Maybe you could donate to charities you agree with and thereby reduce your tax bill.

/I didn't write the tax code, but thanks for the squirt subsidy money anyway!
/Married, One Income Two Kids
 
2013-01-09 08:14:56 AM  
Yeah, teabaggers are just stupid. It is just fine if the government wants to hold on to other peoples money for a couple weeks longer due to incompetence... in fact, that's thew way it should be. In fact, they shouldn't give that money back at all if people can't plan their exemptions properly. It can be a stupidity tax.
 
2013-01-09 08:16:01 AM  

MusicMakeMyHeadPound: stuartp9: Thunderpipes: Past 80k or so, things turn really, really ugly. The things you cannot claim as exemptions climb. Just making 20k more at some point makes you pay dramatically more taxes.

I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?

Protip: Thunderpipes is special needs.

As best I can tell, he's referring to hardship deductions that you can't take once you earn past a certain threshold.

For example, I pulled down $101k in contract work in 2010 and was unable to take a deduction on student loan interest I paid that year. Being a rational person I didn't mind, since I clearly had no problem paying back my loans and keeping myself fed that year. Thunderpipes seems to think it's a travesty.


Liar. Student loan and education deduction end at 82k.
 
2013-01-09 08:19:45 AM  

stuartp9: I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?



There are some things that we allow people to deduct from their incomes when calculating the amount of taxes they have to pay. A number of these deductions "phase out" as gross incomes rise. In 2011, for example, the cut-off point for the student loan interest deduction was $60,000, and phased out completely at $75,000. Since you can only deduct a maximum of $2,500 in student loan interest, if your income was $60,000 (which is taxed at 25%), the maximum savings on taxes is $625. There's a few other deductions that work like this.
 
2013-01-09 08:20:15 AM  

LordOfThePings: stuartp9: But don't you pay income tax during the year when you get your salary each week/fortnight/month? Or do you get all of your income and then have to pay in a lump sum at the end of the year?

It depends on your employment structure, but most employees have withholding on every check and get a W-2 at the end of the year. It's different if you're a business owner or independent contractor where you have to do your own accounting and pay estimated tax quarterly.


That sounds about right, same as here in Aus - except here deductions can be claimed by anyone and don't have a threshold (although our top tax rates are 37% when over 80k and then 45% when over 180k).
 
2013-01-09 08:21:01 AM  

stuartp9: Kuroshin: Because he's trolling.  The primary problem with taxes in the US is that withholdings from your paycheck don't really reflect what you make.  Too much gets withheld at lower incomes, while too little gets held as you go up.  My wife and I both claim zero exemptions, yet still don't have enough drawn against our incomes over the course of the year.

It gets especially tricky with dual-income households, because your incomes don't get taxed at the joint rate.  Being married with no kids and no house means there is pretty much nothing you can use as a deduction to lower your tax liability.  Back when I was self employed I was able to essentially negate my entire income with deductions, but that requires quite a bit of creative accounting and lots of receipts.

Our tax system is a bit of a clusterfark, but don't let Thunderpoop fool you - when you make more money, you take home more money.  Even though you end up with a (climbing) tax bill at the end of the year, you've still got more money in your pocket than the guy making less.  At the end of the day, the more money you make, the more money you have, even after taxes.

Oh I figured he was trolling.. but I was trying to determine why you would have to pay anything at all at the end of the year, and why your tax bill is higher than the tax taken out during the year if you have no deductions.


Yeah, it's because of weird things like projected income versus actual income.  Tax rates change as you go up the ladder.  Every dollar below $25k is taxed at one rate, then every dollar between $25k and $35k at another rate, then it changes again at something like $45k...  Then when you combine incomes, they literally just add them together and apply the same rate structure.

A flat (regressive) tax would eliminate this, but would also accelerate the northward-float of money, causing even more economic headaches over the long-haul.  Plus, our government, even though they have every single bit of information about our marital status and incomes, can't figure this crap out on their own.  We really do save our best and brightest for the bureaucracies... O_o
 
2013-01-09 08:26:18 AM  

Misch: stuartp9: I don't understand how your system works in the U.S. Here in Australia we have tax time in July onwards, and rare that anyone has to pay tax unless they have extra income that hasn't been taxed like bank interest or investments. The tax comes out of your salary during the year so at tax time you are just indicating if you have any deductions or rebates etc.

Why do you suddenly have to pay when you go over 80k?


There are some things that we allow people to deduct from their incomes when calculating the amount of taxes they have to pay. A number of these deductions "phase out" as gross incomes rise. In 2011, for example, the cut-off point for the student loan interest deduction was $60,000, and phased out completely at $75,000. Since you can only deduct a maximum of $2,500 in student loan interest, if your income was $60,000 (which is taxed at 25%), the maximum savings on taxes is $625. There's a few other deductions that work like this.


Of course, none of those things actually increase your tax bill.  Those are deductions you take after the fact.  Semantics, yes, but this is taxes we're talking about. ;)

/never personally had any sort of additional deductions to take
//except with the business
 
2013-01-09 08:28:20 AM  

Kuroshin: Yeah, it's because of weird things like projected income versus actual income.  Tax rates change as you go up the ladder.  Every dollar below $25k is taxed at one rate, then every dollar between $25k and $35k at another rate, then it changes again at something like $45k...  Then when you combine incomes, they literally just add them together and apply the same rate structure.

A flat (regressive) tax would eliminate this, but would also accelerate the northward-float of money, causing even more economic headaches over the long-haul.  Plus, our government, even though they have every single bit of information ab ...


Oh ok, I can understand what you mean - when you have more than one income (e.g. multiple part-time jobs) each gets taxed at lower rates. Same as here. But if you only have 1 income, work as an employee with a salary and have no deductions then would your tax bill at the end of the year be $0?
 
2013-01-09 08:28:57 AM  

MyRandomName: Liar.


Idiot.

We're really getting into some good repartee here.
 
2013-01-09 08:29:58 AM  

Thunderpipes: I paid for my college out of pocket. I cannot even deduct student loan interest. My tax dollars give free money to others to go as well. Why is this in any way fair?


SO you were aware that the interest was deductible. You could have gotten a loan and chose the path of most resistance. You sir are a genius.
 
2013-01-09 08:31:09 AM  

Kuroshin: I'm married, no kids, no house, and combined income that just reaches six figures so no, I'm not terribly concerned with filing for any "refund."  We're expecting a bill in the $3k-$5k range, just like last year..

/got nothing to deduct


"Make" some deductions. No, I don't mean "have kids".

3 ways to reduce taxes

The most simple and beneficial way to reduce your taxes is to max out what you put into either your employer's 401(k) plan, or into an IRA you can set up yourself. (If you aren't taking advantage of an available 401(k) plan at work, kindly insert a pic of your favorite facepalm here.)

It isn't too late to do this for 2012.

Buy yourselves a Suze Orman book or two.
 
2013-01-09 08:38:48 AM  

Devolving_Spud: Buy yourselves a Suze Orman book or two


NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO O OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!
 
2013-01-09 08:47:13 AM  
Is this where people who earn more than double or triple the median household income whine about their minor tax increase?
 
2013-01-09 08:47:48 AM  

sanriosucks: Oh, the end of January kind of late... Can you even get w2s or other needed tax docs before then?


I got my W-2 last week. I work for a company with 13 employees. However, my wife works for a huge insurance company, so we're waiting on hers still, as well as assorted interest statements, etc. But back when I was still single and renting, I could file my taxes in early January and have my refund by the end of the month.
 
2013-01-09 08:47:57 AM  

stuartp9: Kuroshin: Yeah, it's because of weird things like projected income versus actual income.  Tax rates change as you go up the ladder.  Every dollar below $25k is taxed at one rate, then every dollar between $25k and $35k at another rate, then it changes again at something like $45k...  Then when you combine incomes, they literally just add them together and apply the same rate structure.

A flat (regressive) tax would eliminate this, but would also accelerate the northward-float of money, causing even more economic headaches over the long-haul.  Plus, our government, even though they have every single bit of information ab ...

Oh ok, I can understand what you mean - when you have more than one income (e.g. multiple part-time jobs) each gets taxed at lower rates. Same as here. But if you only have 1 income, work as an employee with a salary and have no deductions then would your tax bill at the end of the year be $0?


Depends on your income.  Before we got married, my wife made $50k/yr and always had a tax bill - no exemptions, no deductions, please pay kthxbye.  I was making just over $30k and pretty much broke even.

They don't scale their withholdings correctly.  Dunno why.  PITA
 
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