Did he start work on January 1?
Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?
Did he start work on January 1?
Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?
alkemyst
No Lifer
- Feb 13, 2001
- 83,769
- 19
- 81
Most people aren't getting back $12k though. For most the worry of the 'man' holding their interest is pointless.
The biggest problem people run into is trying to net out $0 and end up having to pay. Whether you have the cash or not should you withhold too little you get penalized. Many people can't write out a $2000+ check come april and end up paying alot more in penalty than the interest savings they were hoping for.
That's not how it works at all. You get to take either the standard or itemized deduction off of the 50k. Assume you take the standard deduction (around 8.5k this year), now you are only taxed on 41.5k. However, the first $7,825 is taxed at 10%, the next $24,025 at 15% and the rest at 25%. Therefore, the tax rate is about 13-14% (rather than 25%) and you pay about 6.8k. (This assumes you are single with no dependents).
He works for local, state or federal government, they frequently have their own self funded retirement and medicare/pension plans.
SearchMaster
Diamond Member
- Jun 6, 2002
- 7,791
- 114
- 106
Yeah, isn't that ironic? The rest of us are mandated by the government to fund the POS known as social security, but the government is not.
- Oct 30, 2000
- 42,589
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Send some of it to the AT Moderator account to compensate for the Tax thread that they allow ever year for the members.
- Oct 30, 2000
- 42,589
- 5
- 0
By claiming 0 exemptions, you will get some of your tax withholding for both the Federal and State back.
Operating on the assumption that you are renting a place to live; I would expect that you will not have enough expenses to itemize with.
You are left with educational tuition expenses as the only option to lower your taxable income.
There will be tax S/W available at the end of the year, some free, some $20-30 that will take your numbers and in 30 seconds, let you know the status.
You will have the choice also to electronically file ($10-$20) if you desire.
Your income level is expected to be to high to qualify for some of the free filing options.
There may be some deals out there that will allow free filing; you will have to pay attention to the tax thread come January.
Operating on the assumption that you are renting a place to live; I would expect that you will not have enough expenses to itemize with.
You are left with educational tuition expenses as the only option to lower your taxable income.
There will be tax S/W available at the end of the year, some free, some $20-30 that will take your numbers and in 30 seconds, let you know the status.
You will have the choice also to electronically file ($10-$20) if you desire.
Your income level is expected to be to high to qualify for some of the free filing options.
There may be some deals out there that will allow free filing; you will have to pay attention to the tax thread come January.
- Oct 30, 2000
- 42,589
- 5
- 0
H & R block will charge close to $100 for Federal & State taxes for a normal W2 (unless you have some discount).
School'em Eagle. Take'em to school!!!!! Learn'em sumthin'!
Thanks again for all your contributions to this forum and the annual thread.
- Oct 30, 2000
- 42,589
- 5
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Originally posted by: spidey07
School'em Eagle. Take'em to school!!!!! Learn'em sumthin'!
Thanks again for all your contributions to this forum and the annual thread.
As CC stated, why is the Moderator Tax thread paypal account still at zero.
It can not even cover the cost of a :beer:
alkemyst
No Lifer
- Feb 13, 2001
- 83,769
- 19
- 81
Originally posted by: EagleKeeper
As CC stated, why is the Moderator Tax thread paypal account still at zero.
It can not even cover the cost of a :beer:
lolz
Seriously to the OP find a copy of turbotax and use it on your situation. It won't be 2007 figures but should be close enough for a W2 standard deduction scenario.
It's simply my preference. I realize I am not making more money off of it. I know I could do things with it like invest or what not which could lead to me making more money yearly. I know I could also toss it in a savings account if I need to put it somewhere so I don't spend it. None of that really matters to me though. I am really happy with where I am in life in general along with where I am financially even though I am not even close to making six figures. I make plenty of money to do what I want and I don't care about trying to get rich. Claiming 0 and getting more back after filing for taxes is just a convenient way for me to get a nice surprise chunk of cash to do what I please once a year.
Life's much better when you don't worry about squeezing every penny.
Originally posted by: jagec
You don't get penalized if you pay on time.
Valid point about the interest, though.
Penalized was the wrong word. He meant that the numbers don't balance themselves out and you need to pay the govt what you owe them in taxes. That's all. Allowing the govt. to keep a little extra is good insurance so that you get a surprise paycheck after filing instead of a surprise bill. It's all a matter of preference in the end though like I previously stated. You owe what you owe in taxes and that's the bottom line no matter how you cut it.
alkemyst
No Lifer
- Feb 13, 2001
- 83,769
- 19
- 81
Penalized is the right word. You withhold too little during the year and you are subject to a penalty whether you pay on time or not. Also like I said though, most don't have a few grand lying around to cut a check to the IRS in April. They will talk about investing their 'savings' and all that but in the end they have spent it.
For most americans the tax differences do not add to a significant investment.
For most americans the tax differences do not add to a significant investment.
Wait a second. I just thought that if you withhold too much (whether it be on accident or intentional) then you simply have to "pay your taxes" once you file. That's considered a penalty? Are you charged more than you would have had to pay if you withheld an acceptable amount?
It depends on how much you underwitheld. I wind up paying taxes every year, never had a penalty.
F8ck I guess I claimed 1... how is this affect this whole scenario ?
AGAIN for those still wondering why I don't pay SS and Medicare is because of a treaty between Morocco and the US that I don't pay that for the first 5 years working in the US. I also get to make the first few thousands of dollars (I think like 3K) tax free.
I have to pay SS and Medicare next year don't worry.
I can't imagine I have to pay more taxes, they take ~$1020 from my check each month !!!! I am really in deep shit if I have pay in comes April.
AGAIN for those still wondering why I don't pay SS and Medicare is because of a treaty between Morocco and the US that I don't pay that for the first 5 years working in the US. I also get to make the first few thousands of dollars (I think like 3K) tax free.
I have to pay SS and Medicare next year don't worry.
I can't imagine I have to pay more taxes, they take ~$1020 from my check each month !!!! I am really in deep shit if I have pay in comes April.
If I buy a home not in the US, can I still claim that interest ?
Thanks for all the info, I am really unfamiliar with this topic, and I don't want to get owned in the future if I already messed up this year.
Thanks for all the info, I am really unfamiliar with this topic, and I don't want to get owned in the future if I already messed up this year.
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