Who Else Is Getting The Big Stiff One On Tax "Returns" This Year?

Tax laws are out of control.

Un'sub'd

 

I got back $8500, but mostly because I cashed out a buttload of vacation time last year to take my kids to Italy for my daughter's high school graduation present. Vacation cashout means I get 55% of what I cash out and the rest goes to taxes. However, when I do my taxes all of that money is just taxed at my normal tax rate, so it works out. Plus, I work in a state with state income tax, but I live in a state without state income tax, so when I work from home, I don't pay state income tax for those days. Worked out to be 75 days last year I didn't have to pay state income tax. Single, one dependent.

 

I WORK in a state with income tax and I LIVE in another state with income tax. I'm screwed.

 

Come again?

 

I have one source of employment income. I work in one state (NJ), but commute/live in another state (NY).
I pay income tax to BOTH states.

 

Ouch...

 

My wife is a CPA. She retired in September of this year and I'm still working. I also have my Army retirement pay. We live in PA so we pay State and Federal taxes on our income - but PA does not tax my Army retirement pay. Our goal every year is to write the smallest check possible to pay the balance of our taxes owed. We would much rather have our income to use and invest throughout the year instead of giving it to the government for them to use and wait for them to finally give it back during tax season.

 

Just got my $139 refund yesterday. I filed paper and mailed in return on 1/22. I don't trust electronic transactions with the government even though I'm sure all my info is "out there".

 

You guys need to learn how to plan better.

I've worked and paid taxes over 50 years. My goal was always to not pay at tax time, but also not to have large refunds. IE pay what I was required, but not overpay and lose the use of my funds.

I had 1 year I had to pay, because of my lack of attention to some details on investments. That was the year my first wife passed away, so I excused myself for being neglectful of the tax planning.

Since retirement I've paid no Federal taxes (100% returns) for 3 years. In that period we've also been able to convert about $50k from traditional to Roth tax free.

However, next year we'll be out of the situation that allowed that to happen for us. So my goal now is to adjust withholding so I can return to my zero sum game........ ie not pay more, but little to no refund as well.

 

That's fucked up. I work in a state with no income tax but live in a state with income tax. At the state level, I'm only taxed where I live.

 

Well its just me and my wife, we make six figures, and they let us know we made to much money. Gettin it double no lube, extra sandpaper and hot peppers stuck on each cactus spike........

 

I work hard for a living and pay a pretty high tax rate around %30. Upper 20's, single, no kids. I understand being frustrated with paying taxes, and seeing those who don't work get a big check. Your wife's niece is receiving the Earned Income Tax Credit(EITC). Single parents (mostly moms) who make less than 18,000 get back a huge refund depending on children. Often 4,000 to 10,000, however Im sure some get back $11,000. As unfair as it sounds if you look at the statistics and the reasoning it does make sense. It provides a cushion a lot of these folks plan on, since it is probably tough to raise three kids on $18,000 a year even with government programs. It continues to be part of the tax code and continues to get bipartisan support. Even Paul Ryan supports expanding it. There is so much positive data on the EITC since its inception in 1975. Just google Earned Income Tax Credit and take a look.

Here is a link to an article on Breitbart
http://www.breitbart.com/big-government/2016/02/19/working-americans-credit-gets-bipartisan-support/

 

Turbo tax is just an excel spread sheet for folks too lazy to read the parts of the tax code that apply to them.

If 'too much' applies to you (for most folks it doesn't) then pay a pro to do the work for you.

 

Not too bad. First year filing married for the wife and I, no kids, both work 40hrs a week, but only earn about 65k combined. We both run small side gigs where we spend more than we earn (for now), so deductions (I have a home office, she uses her car for side business) got us a nice chunk, about $2.5k. Wife's mom works at HR Block, so she hooked us up.

 

Jesus. They bend you over even before you drop the soap.

Fuck, I thought some of us in this thread were already getting inserted properly. They just found a whole new level to reeming you dry.

 

Couple of options though........ Federal taxes are equal over all the states, so you'll have that any way you turn.

If the state situation you are in is too burdensome, you can move. It's your choice to stay in that state.

Several states have no state income taxes. Revenue comes from other taxes, like property and sales, etc.

Why do you think so many big rollers (golf, music, baseball, etc.) make Fl their primary residence? It's not just the weather and beaches.

 

I couldn't DISagree with you more. IMO, every single able bodied adult needs to have "skin in the game". For the most part having a child is a choice and for the majority of people so is choosing to live within your means and to a degree salary. Why should a single guy like me with no dependents end up paying high 30s a year in tax (income tax alone) when my co-work with a wife and child (his choice) pays 10k less? Further to that point, why is it MY responsibility to provide for people who choose to reproduce KNOWING they are unable to provide for themselve and their offspring?

I'm guessing you also buy into the "means test" for social security currently being tossed around...so those of us who save will have our social security reduced (even tho I pay it out) because we can survive without it and because life is hard for some others?

 

I agree with you as far a child being a choice and that people should be working. I also believe in individual responsibility. And I'm right there with you on being taxed around 30% it sucks. As far as your coworker paying 10k less than you for having a kid, thats a separate issue. I do not agree with our tax policy giving a rewarded for every child you bring into the world. However thats not the Earned Income Tax Credit. The concept of tax breaks for having children has been around forever and just about everyone with kids likes it, including both sides of the political aisle. I'n not sure where I stand on the "means test". I save damn hard for retirement, but I do think that someone who has 300 million in the bank probably shouldn't be getting social security. Just my two cents.

 

At my second job I get paid twice a year. I ask our treasurer to take an extra $200 and $100 out of fed/state respectively per season. Not sure what he does but that's what I did.

 

Agree with most...

Agree that deductions are different than EITC...it's just another reason for my general dislike for our tax method. Did you know, that people who are ENTITLED to EITC can still contribute and make investments? My feeling and how I've lived when shit was really tight, having NEVER received public help, I ended my investments and used the cash to live on.

Regardless of how much a person has, if they are paying social security, I feel they should be able to expect it in the end...otherwise, don't take it. Of course we've all known it's been nother but a transfer tax for years.