Funding the Bailout

[shmike]

Originally Posted by Rider

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred.

It depends on your income bracket and your deductions.

The more money you make, the less deductions you get.

I have itemized in the past but as my AGI has gone up, the limitations make it less and less likely to surpass the standard deduction.

As a single filer with no kids or mortgage, I'm lucky if my payroll withhold just barely covers my tax liability. Add in any 1099 income (bonus, dividends, interest, cap gains, 2nd job, etc.) and it pushes you over.

I haven't gotten a refund in 4 years.

[Homeslice]

Originally Posted by Method

There have been some reports out of the IRS that they will be doing heavy audits on people from years past due to budget shortcomings. They're doing everything they can to raise more cash.

That's actually good news IMO, considering all the cheaters and "creative accounting" that goes on in this country. People claiming that their new truck or nice vacation was bought for business purposes when it really wasn't, etc. etc.

[Homeslice]

Originally Posted by fasternyou929

Good to hear the IRS has gotten soft in its older age! I found the culprit in my papers, apparently an account I closed when I moved from Miami to Raleigh was reported as income. No idea why, but it's not a tax-deferred account so this should be relatively painless. Unless they're persistent on taxing my liquid assets again...

What kind of accout? A bank account?

[fasternyou929]

Originally Posted by Homeslice

What kind of accout? A bank account?

Yep, just a plain ol' CD.

[shmike]

Originally Posted by Homeslice

That's actually good news IMO, considering all the cheaters and "creative accounting" that goes on in this country. People claiming that their new truck or nice vacation was bought for business purposes when it really wasn't, etc. etc.

People love to brag about how "creative" their accountant is and how much money they got back.

Most fail to realize that all that creativity can bite them in the ass if the ever get asked to prove it.

I'm glad that your tax guy found $65,000 worth if itemizations for your $40,000 salary but I hope you have the receipts if Uncle Sam comes asking...

[Homeslice]

Reminds me, I was at a ball game a couple days ago, and I was sitting next to this dude who was bragging about dragging his TV down to the basement after it got flooded so he could claim it and get a new one

[6doublefive321]

Originally Posted by Rider

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred.

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

[Cutty72]

Originally Posted by 6doublefive321

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

What's wrong with sheep research?

[Captain Morgan]

Originally Posted by fasternyou929

Yep, just a plain ol' CD.

That plain ol CD was bought for a certain price and matured for a certain price, which is why they saw it as a taxable gain. I know you said above that you paid the same it was cashed out for, so it was a wash, but until you put the cost basis in your taxes, the IRS thinks you got it for zero and made 45k on it. Very easy to fix, though.

Originally Posted by 6doublefive321

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

Agreed. I typically get anywhere from 500-1k back. Got a LOT more this year only because of first time homeowner for house I bought at very end of 08. I prefer to get the smallest refund possible each year, that way I'm putting my money to use over the course of the year instead of the government using it.

[nhgunnut]

Originally Posted by fasternyou929

And the reason for this blessed piece of mail? Apparently I forgot to list $45,000 in income from a company that has never employed me or my wife. Perfect. So I get to prove to the IRS that I never received something they believe I did. Should be a piece of cake.

Damm !
I guess the only good news is that you are now eligible for a Cabinet Post!