Tax Returns are coming soon!

About $1000 depending on your situation.

 

i like your logic, and thats what i've been doing for years

 

I think 1000 dollars is quite a bit to underpay.

http://www.forbes.com/sites/advisor...ent-penalty-and-how-to-avoid-it/#708ec69658c6


Understanding the Underpayment Penalty
When you calculate the amount of tax that you owe, after you’ve subtracted however much you had withheld or paid in estimated tax throughout the year, if you haven’t paid in enough tax, the IRS will assess a penalty for underpayment. This penalty is based upon the lesser of two amounts:

• 90% of the amount of tax you will pay in total for the year; or
• 100% of the amount of tax you paid for the previous year.
  Recommended by Forbes

Note: These amounts are different if you are a farmer or fisherman by trade – in that case you use 66 2/3% of the tax you’ll pay instead of 90%. In addition, if you are not a farmer or fisherman by trade and your income is greater than $150,000 or $75,000 for Married Filing Separately, the factor you use is 110% of the amount of tax you paid the previous year, rather than 100%. For the purpose of this article, we’ll just use the “regular” figures.

If the amount of withholding and estimated payments that you’ve made throughout the year is at least $1,000 less than the smaller of those two factors, you’re in a position to receive an underpayment penalty. If this is the first year that you’ve had such an underpayment, the penalty is waived – but if you did it two years in a row – you’re going to pay a penalty.

 

I'll get about 400 back. I hate how I have such a high effective tax beacuse I make decent money, single and no debt.

 

You think you hate it now. Ha!
Go out and get you a wife. She will certainly take care of all that extra money for you.

LOL

 

Honestly you are screwed anyway around. If you find a sig other that makes the same as you your effective rate doesn't change. If she makes less you have less money per person but get taxed less overall. If you have kids you get extra exemptions etc but you have to pay for kids so it's not like you make money on them.

With the standard deduction being so high you would have to spend a lot on deductible things to make any dent by itemizing. Even a lot of people with mortgage interest don't hit it.

Moral of the story, doesn't matter what you do you get screwed.

 

The total effective tax rate is scary. I saw a report years ago that compared the current total (as in all) tax rate from 70s or 80s to current. From what I recall it was like 2x.

 

I want to get a set of Cooper Discoverer AT3s

 

My taxes are a little more complicated this year. 2 homes, 1 is a rental property that sat empty most of the year, 6 months in a tax free zone, a small business that hasn't started making money yet, lots of fun stuff.

 

All this refund talk and making sure your are a wash at the end of the year makes my head spin.

To those that say you shouldn't be paying the government to hold your money. Yes I agree for the most part. But at the end of the day unless you are taking that money and putting it into the market, it makes ZERO difference getting the money now or later , especially considering rates are incredibly low.

 

Ahhhh dont remind me.. here come the 60-70 hr weeks

 

Duh, that's the point! Why wouldn't you take that dough and put it into an after tax saving account, market mutual fund or increase your 401K contribution (if you get a 1200.00 dollar refund, that's a 100.00 bucks a month)make an additional payment on your mortgage, reduce your credit card debt etc, etc, etc - or just plain old piss it away.......

 

Exactly. I'd have to assume most of them aren't allocating that "extra" money into any type of investment considering some of them are struggling to afford 5100's on their truck.

 

Brute force fab is what I'm getting. Lol

And also finishing paying off all my credit

 

I've tried both ways since I've been married with kids, houses, cars.

Works out about the same regardless. Seems like a penalty for being hard working middle class. You either have to be rich or poor to make out like a fat rat.

 

Yeah, sounds like fun. We used to own rental property that thankfully we could show a loss on every year be reinvesting into the property and my wife used to do a lot of contract work that made estimating a nightmare. Had to pay the penalty one year for not paying in enough quarterly. I hate taxes.

 

Sorry buddy, not looking for a relationship.

 

It might surprise you how much people have in the bank verses what they pay for a vehicle. You do have a good point, but some people like me put the truck on one of the lowest priorities in their budget and do things for it on the cheap. In my case I'm not banking all that extra money, my wife is spending it. She's happy, I'm happy.

 

I pull down a significant amount of Oats during fire season and the Feds tax my dick off.

Bought a house this year so I'm hoping to see an improved return this year.

Gonna spend a little on ammo and hide the rest from my wife!