Taxes are done.

[homercles337]

Originally posted by: DrPizza
I don't know how you win by getting no return. Are you allowed to tell your employer "don't withhold anything from me?" The people who win this game are the people who have the minimum withholding and still get a large return.

Also, the "tax free loan" - big deal. Let's suppose you get a $2000 return. The average amount that you loaned the gov't over the course of the year is about $1000. At 4% interest rate on a savings account, that's $40. Not a big deal.

Exactly, finally some sense in here. Not to mention that a $2k return (thats what im getting) is nice when its not expected.

 

[Pliablemoose]

Originally posted by: dquan97
Haven't even gotten my W2 yet!

 

[Zenmervolt]

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

 

[slsmnaz]

Originally posted by: Queasy

Originally posted by: GRIFFIN1
I e-filed my federal and state taxes a couple of hours ago. After looking at how much the government takes from me, I feel sick to my stomach.

Think that makes you sick?

An estimated $300-$500 billion is wasted every year on tax compliance.

An estimated $13 trillion sits in off-shore accounts to avoid U.S. taxes.

someone was listening to Boortz today

 

[homercles337]

Originally posted by: Queasy

Originally posted by: GRIFFIN1
I e-filed my federal and state taxes a couple of hours ago. After looking at how much the government takes from me, I feel sick to my stomach.

Think that makes you sick?

An estimated $300-$500 billion is wasted every year on tax compliance.

An estimated $13 trillion sits in off-shore accounts to avoid U.S. taxes.

Yep, have you seen the Frontline episode Tax Me if You Can? If corporations paid what they are supposed to, rather than hide it in tax shelters, every american citizen would have their tax burden halved. Halved!

 

[alkemyst]

Originally posted by: Zenmervolt

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

QFT! I am hoping this guy is like 18 or so and just starting off.

There are a couple good ways to use that tax money during the year...most talk about investments, but in reality most would be better served paying down their CC's esp those with cards at 20%+.

 

[DBL]

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

It totally depends on your fiscal responsibility. Your method is correct provided you financial management skills are poor.

 

[new2AMD]

Originally posted by: Zenmervolt

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

wow, is this a hot button issue for you or something? I dont think you need to be calling names like a child. What ever I choose to do with my money is my choice. You are one of those who thinks everything you do is the ONLY way to do things. Its not something I care enough about to figure out what I need to have withheld and the same for my wife. And factor in having another kid and all that. I pay my taxes and if I over pay then they give back to me whats mine. So go blow your holier than thou horn elsewhere.

 

[new2AMD]

You guys all act like people arent financially responsible if they dont take out the exact withholding each year. I just dont see the correlation.

 

[vrbaba]

Originally posted by: Zenmervolt

Originally posted by: DrPizza
I don't know how you win by getting no return. Are you allowed to tell your employer "don't withhold anything from me?" The people who win this game are the people who have the minimum withholding and still get a large return.

Also, the "tax free loan" - big deal. Let's suppose you get a $2000 return. The average amount that you loaned the gov't over the course of the year is about $1000. At 4% interest rate on a savings account, that's $40. Not a big deal.

And at the 25% return my investment accounts made last year it's $250. It's certainly true that it won't break me one way or the other, but in principle I would rather have the ability to invest the money.

ZV

I agree with DrPizza. Even if your return is 25% you dont have all that "tax money" at the beginning of the year to earn all of that interest at a fixed rate. you are accumulating like $100 bucks or whatever over each month. And if that extra 50 bucks in interest that you earned is really worth the trouble of writing off a big check at the end of the year and keeping track of the money you throughout so you dont blow it on unexpected expenses, you have other issues.

Now, if you are making millions, the situation changes, and Im sure you have your banker to take care of it. If you have 100s of thousands in taxes to pay, now that yields a sizable income if you have a nice return on ur investments.

 

[JEDI]

Originally posted by: ironwing

Originally posted by: JEDI

congrats. hope you're mailing in the $78 by 4/15, but filing the extension, and do the actual filing on 10/15.

I understand the waiting until 4/15 to pay but what does waiting until October to file get you?

6months less time for the IRS to audit you.

of course if you dont engage in aggressive accounting techniques, then dont worry about it.

 

[mugs]

Originally posted by: Zenmervolt

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

That's rather... harsh.

 

[vrbaba]

Originally posted by: alkemyst

Originally posted by: Zenmervolt

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

QFT! I am hoping this guy is like 18 or so and just starting off.

There are a couple good ways to use that tax money during the year...most talk about investments, but in reality most would be better served paying down their CC's esp those with cards at 20%+.

maybe you are not paying the CC interest, but..

Good job on earning 30 bucks to pay off your 20% CC interest. I think you have other problems that needs addressing. And where do you get that money to invest when you are sh1t in debt to be paying high CC interests.

What he is doing is completely fine.

 

[Zenmervolt]

Originally posted by: new2AMD

Originally posted by: Zenmervolt

Originally posted by: new2AMD
Do people really buy into that interest free loan to the gov't? A refund is a refund. If you pay taxes and they give you money back how is that a bad thing? I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it.

So, basically, you're saying that you're too incompetent to put that money into a savings account and need the government to hold onto it for you so that you don't spend it immediately.

If someone is too stupid to be able to save money over the course of the year then I suppose it can be helpful to just have it taken away by the government and given back in a lump sum at the end of the year. Of course, in that case, the person is probably still too stupid to save that money and they will likely just spend it all anyway thus negating any benefit to the enforced saving over the course of the year.

ZV

wow, is this a hot button issue for you or something? I dont think you need to be calling names like a child. What ever I choose to do with my money is my choice. You are one of those who thinks everything you do is the ONLY way to do things. Its not something I care enough about to figure out what I need to have withheld and the same for my wife. And factor in having another kid and all that. I pay my taxes and if I over pay then they give back to me whats mine. So go blow your holier than thou horn elsewhere.

Defensive, party of one...

I'm sure not going to call you a brilliant investor for intentionally using tax overpayments as a savings account; I don't know how else to honestly describe that choice other than stupid and an admission of the inability to monitor one's own spending. Your initial post did not say "I don't care enough about the interest to spend the time tweaking my withholdings", rather, your initial post said, "I for one would like my pay to be a few bucks less a month and get a nice check at the end of the year to do what I want with. As opposed to spreading that out over the year and not really noticing it". There's no way to read the portion in bold except as, "I can't monitor my spending well enough to save this money on my own". You don't get to communicate poorly and then blame others for not understanding you. Unless you're my department's senior manager.

ZV

 

[ponyo]

Every year we go through this and people here freak out if you get a refund because that means you're not earning every single penny. Funny thing is Americans have negative savings rate. So they would be screwed worse if they didn't get the refund. Same way they would be screwed if they had to pay their property taxes and insurance once a year instead of escrowing it.

 

[imported_Imp]

Damn... I still gotta wait until the end of February or March for my last employer to send me a form. They owe me quite a bit cause I'm considered "low income" as a student. Boo ya.

 

[mugs]

Originally posted by: JEDI

Originally posted by: ironwing

Originally posted by: JEDI

congrats. hope you're mailing in the $78 by 4/15, but filing the extension, and do the actual filing on 10/15.

I understand the waiting until 4/15 to pay but what does waiting until October to file get you?

6months less time for the IRS to audit you.

of course if you dont engage in aggressive accounting techniques, then dont worry about it.

That's an interesting euphemism.

 

[DrPizza]

Originally posted by: vrbaba

Originally posted by: Zenmervolt

Originally posted by: DrPizza
I don't know how you win by getting no return. Are you allowed to tell your employer "don't withhold anything from me?" The people who win this game are the people who have the minimum withholding and still get a large return.

Also, the "tax free loan" - big deal. Let's suppose you get a $2000 return. The average amount that you loaned the gov't over the course of the year is about $1000. At 4% interest rate on a savings account, that's $40. Not a big deal.

And at the 25% return my investment accounts made last year it's $250. It's certainly true that it won't break me one way or the other, but in principle I would rather have the ability to invest the money.

ZV

I agree with DrPizza. Even if your return is 25% you dont have all that "tax money" at the beginning of the year to earn all of that interest at a fixed rate. you are accumulating like $100 bucks or whatever over each month. And if that extra 50 bucks in interest that you earned is really worth the trouble of writing off a big check at the end of the year and keeping track of the money you throughout so you dont blow it on unexpected expenses, you have other issues.

Now, if you are making millions, the situation changes, and Im sure you have your banker to take care of it. If you have 100s of thousands in taxes to pay, now that yields a sizable income if you have a nice return on ur investments.

No, he's got it right; $250 on a $2000 return. I figured in there $1000 is the average amount that uncle sam has. Nonetheless, 25% return on an investment is quite impressive - higher than average.


No one's answered my one question though - isn't there a minimum amount that an employer can withhold from you? i.e. if you have the minimum amount withheld and still get a big return, you win?

 

[mugs]

Originally posted by: DrPizza

Originally posted by: vrbaba

Originally posted by: Zenmervolt

Originally posted by: DrPizza
I don't know how you win by getting no return. Are you allowed to tell your employer "don't withhold anything from me?" The people who win this game are the people who have the minimum withholding and still get a large return.

Also, the "tax free loan" - big deal. Let's suppose you get a $2000 return. The average amount that you loaned the gov't over the course of the year is about $1000. At 4% interest rate on a savings account, that's $40. Not a big deal.

And at the 25% return my investment accounts made last year it's $250. It's certainly true that it won't break me one way or the other, but in principle I would rather have the ability to invest the money.

ZV

I agree with DrPizza. Even if your return is 25% you dont have all that "tax money" at the beginning of the year to earn all of that interest at a fixed rate. you are accumulating like $100 bucks or whatever over each month. And if that extra 50 bucks in interest that you earned is really worth the trouble of writing off a big check at the end of the year and keeping track of the money you throughout so you dont blow it on unexpected expenses, you have other issues.

Now, if you are making millions, the situation changes, and Im sure you have your banker to take care of it. If you have 100s of thousands in taxes to pay, now that yields a sizable income if you have a nice return on ur investments.

No, he's got it right; $250 on a $2000 return. I figured in there $1000 is the average amount that uncle sam has. Nonetheless, 25% return on an investment is quite impressive - higher than average.


No one's answered my one question though - isn't there a minimum amount that an employer can withhold from you? i.e. if you have the minimum amount withheld and still get a big return, you win?

I don't know if there is a minimum amount that the employer can withhold, but there is a minimum amount that you have to PAY to avoid paying a penalty. That minimum is the lesser of:
- 100% of your total tax liability from LAST year
or
- 90% of your total tax liability from THIS year

I looked into quarterly estimated payments this year because I did a lot of work on the side, but determined that I didn't need to make estimated payments because my total withholdings from this year will be more than my total tax liability from last year (I owed money last year, but got a raise this year so my total withholdings went up). Therefore I "loaned" the government no money, I'll owe an assload, but I guess I at least earned interest in the meantime.

 

[Mxylplyx]

Havent gotten my W2's back, but I did just change my withholdings a few days ago. Single income family with 1 kid and a mortgage. I had to claim myself married with 8 dependents to get reach close to break even at the end of the year. It seems as if the government is purposely trying to get people to loan them money interest free for the year.

 

[Blain]

Originally posted by: kranky

Originally posted by: Blain
The Idiots guide to taxes...

1. If you owe $$$ at the end of the year, you borrowed the government's money > INTEREST FREE. :laugh:

I just want to cry whenever I see a reference to "the government's money".

You do realize I was writing an "Idiots Guide" and therefore had to dumb it down, right?
One has to address the masses on their level, in order to help pull them up the common sense ladder.

 

[kranky]

Originally posted by: Blain

Originally posted by: kranky

Originally posted by: Blain
The Idiots guide to taxes...

1. If you owe $$$ at the end of the year, you borrowed the government's money > INTEREST FREE. :laugh:

I just want to cry whenever I see a reference to "the government's money".

You do realize I was writing an "Idiots Guide" and therefore had to dumb it down, right?
One has to address the masses on their level, in order to help pull them up the common sense ladder.

No argument there!

 

[PhoenixOrion]

Originally posted by: DrPizza

No one's answered my one question though - isn't there a minimum amount that an employer can withhold from you? i.e. if you have the minimum amount withheld and still get a big return, you win?

Yes, an employer needs to levy a minimum amount and that percentage varies depending on many factors. Even if an employee is eligible for 'tax free' status, the employer needs to withhold an amount throughout the year.

 

[Jadow]

2/3 of the forms I need still haven't come.

 

[PhoenixOrion]

Originally posted by: DrPizza
I don't know how you win by getting no return. Are you allowed to tell your employer "don't withhold anything from me?" The people who win this game are the people who have the minimum withholding and still get a large return.

Also, the "tax free loan" - big deal. Let's suppose you get a $2000 return. The average amount that you loaned the gov't over the course of the year is about $1000. At 4% interest rate on a savings account, that's $40. Not a big deal.

Some of the reasons the rich are getting richer and the middle-class segment is getting larger:
1. woohoo, I only have to pay less than a $100 at the end (so I don't get to reclaim the 25%-33%, or whatever tax bracket you're in, that was taken from me)
2. i 'won' against the govt coz i'm within the -/+ my target for year-end settlement.

:roll:

I too was under these notions a couple of years ago until I started working with people at very high income tax brackets >33%. Their employers/clients/and other sources of income levy the 'minimum' calculated/hypothetical/projected tax but at the year-end settlement, thanks to help with their savvy accountants who know a LOT of legal loopholes, end up with an effective tax rate of less than 10%.....single digits!!!!
I was shocked. Now imagine me categorizing them as 'losers' because they get 'refunded' $20,000 to $60,000 of their money that 'they should have invested themselves' and here I am 'the winner' because I only had to settle by paying less than $100 at the year-end settlement (on top of the minimum withheld already throughout the year) but in essence I paid more, percentage-wise to my overall income & wealth.