Tax question

SigPapa226 · 01-20-2010, 08:23 AM

Smile guys, its going to get worse under Socialism. This Administrations goal is to redistribute the wealth in this country from those that work to those that don't. You guys in Cali have a leg up already.

Mike · 01-20-2010, 11:06 AM

And, you guys are looking at it the wrong way, its not how much you owe at the end of the year or how much you get back, its the total that you pay. This withholding and refund business is BS. Everyone should have to pay quarterly and not have it withheld so you can see what you really are paying in taxes.

I got a state refund of 1287 state and 5622 federal last year, but I actually paid 7501 to the state and 25236 to the feds, so those refund amounts dont really mean squat, other than I paid too much in my quarterlies for my small business and withholding from my main job.

ChrisSlicks · 01-20-2010, 11:45 AM

Quote:

Originally Posted by Mike

And, you guys are looking at it the wrong way, its not how much you owe at the end of the year or how much you get back, its the total that you pay. This withholding and refund business is BS. Everyone should have to pay quarterly and not have it withheld so you can see what you really are paying in taxes.

I got a state refund of 1287 state and 5622 federal last year, but I actually paid 7501 to the state and 25236 to the feds, so those refund amounts dont really mean squat, other than I paid too much in my quarterlies for my small business and withholding from my main job.

Of course it is the total number that counts. The goal would be to get a refund of $0, which would mean that you paid the correct amount of tax monthly throughout the year rather than giving the government a large tax free loan.
If you are self employed then you would pay quarterly and estimate the amount of tax you want to pay, and hopefully at the end of the year your estimates were close enough that you don't end up with a big surprise.

j.arnaldo · 01-20-2010, 01:10 PM

If they're keeping more of your dough, maybe they're not that dumb at all. P-o-l-i-t-i-c-i-a-n-s! They're a necessary evil, I guess!

TARDCORE · 01-20-2010, 01:25 PM

Quote:

Originally Posted by Mike

And, you guys are looking at it the wrong way, its not how much you owe at the end of the year or how much you get back, its the total that you pay.

Thats what I was getting at. Comparing my salaries from 2008, I made about 1.6 times in 2009 but I paid 2.3 time into fed and state taxes. So I don't get where they came up with those numbers. I looked at the tax bracket I fall in for both state and federal and it was correct but I don't understand why my state would change so drastically by claiming single 01 instead of single 00. I mean I still ended up owing 1800! It just doesn;t make any sense so i switched both my federal and state back to single 00 and next year I should get back a hefty chunk of money. Of course the take home on my checks will be less now.

dad · 01-20-2010, 01:28 PM

Taxes | Tools & Calculators - Easy-to-use tax withholding calculator - Kiplinger.com

http://www.kiplinger.com/taxes/

semtex · 01-20-2010, 01:38 PM

Quote:

Originally Posted by ChrisSlicks

Claim 00 if you have no dependents and no mortgage. If you claim 01 and have no state deductions you will get screw-ed over.

Being married doesn't get you any tax breaks unless you start reproducing, and believe me that will cost you a whole lot more in the long run. Most of the deductions for married filing jointly are simply double what the single person deductions are. The main benefit is if your spouse is making less money then you effectively are "averaging out" your 2 incomes for tax purposes. Besides tax the only other financial benefit of being married is that you are only making one rent/mortgage payment.

In the long run being married costs you a lot more than being single, first you have to pay for the wedding, the honeymoon, and 7 years later there is a 50% chance that you have to pay for the divorce and several years of alimony.

So the moral of that little story is don't do it, unless you are 100% sure that it is Mrs Right and you are willing to work on it staying that way.

Oh, and yes, you can deduct any sales (and excise) taxes that you payed on your car. The program should have explicitly asked you that question unless you filed 1040EZ.

That's why they call it the 'marriage penalty'.

01-20-2010, 08:23 AM	#16 (permalink)
SigPapa226 Base Member Join Date: Nov 2009 Location: Virginia Posts: 205 Drives: 300 ZXTT, 370 ZR Rep Power: 15	Smile guys, its going to get worse under Socialism. This Administrations goal is to redistribute the wealth in this country from those that work to those that don't. You guys in Cali have a leg up already. __________________ Black 300ZX TT Stock + Megan CBE; Black Cherry 370Z Roadster, 6MT, Touring, Sport, Nav., 3-way Fog Light (Running, brake & flashing backup), Triple Tone Air Horns.

01-20-2010, 11:06 AM	#17 (permalink)
Mike The370Z.com Sponsor Join Date: Jun 2009 Location: Loganville, GA Posts: 5,944 Drives: 370z Rep Power: 2186	And, you guys are looking at it the wrong way, its not how much you owe at the end of the year or how much you get back, its the total that you pay. This withholding and refund business is BS. Everyone should have to pay quarterly and not have it withheld so you can see what you really are paying in taxes. I got a state refund of 1287 state and 5622 federal last year, but I actually paid 7501 to the state and 25236 to the feds, so those refund amounts dont really mean squat, other than I paid too much in my quarterlies for my small business and withholding from my main job. __________________ NISSAN: 75 280Z / 86 300ZX GLL /87 Sentra SE / 03 350Z / 23 Z Porsche: 93 968 / 23 Macan GTS / 93 968

01-20-2010, 01:10 PM	#19 (permalink)
j.arnaldo Banned Join Date: Oct 2009 Location: Puerto Rico Posts: 937 Drives: Nissan 350Z, 2004 Rep Power: 0	If they're keeping more of your dough, maybe they're not that dumb at all. P-o-l-i-t-i-c-i-a-n-s! They're a necessary evil, I guess!

01-20-2010, 01:28 PM	#21 (permalink)
dad Grand Prix of Endurance Join Date: Nov 2008 Location: Tennessee Posts: 3,476 Drives: Mulsanne Straight Rep Power: 26	Taxes \| Tools & Calculators - Easy-to-use tax withholding calculator - Kiplinger.com http://www.kiplinger.com/taxes/