Will the government at some point step in to control Automation and AI in society?

[Red Squirrel]

I'm with ya there. I'd rather get kicked in the nuts a dozen times than to get fucked with by the IRS. Those bastards are ruthless and they have the power to do all sorts of hugely fucked up things to you.

I knew a guy that had all of his accounts frozen for months by the IRS and at the end of it they made a mistake not him. If he didn't have family that was able to float him with cash he could have very well lost his house among other things. Fuckers didn't even apologize.

Yep exactly. Often times they will wait many years before they decide to attack too. So you end up owning tons of money plus interest. I've heard some horror stories of people owing 10's of thousands or even 100's. Most people won't have that kind of money lying around. More than half the money you make is tax money, that accumulates FAST over years if it's not fully claimed due to an error. Some workplaces do have the option to take more taxes, it's not a bad idea to do that as it does give you a buffer at tax time to ensure you get a better return. But even then if a mistake is made and you claim too much money back it could bite you in the ass years down the line. That's why I leave it up to a pro. A pro is less likely to make a mistake and is also more likely to know of any new incentives/rules you can take advantage of to maximize your return. Something a computer program won't be able to do for you. It's like saying that just because you have AutoCAD you can design and build a house.

 

[nakedfrog]

Yep exactly. Often times they will wait many years before they decide to attack too. So you end up owning tons of money plus interest. I've heard some horror stories of people owing 10's of thousands or even 100's. Most people won't have that kind of money lying around. More than half the money you make is tax money, that accumulates FAST over years if it's not fully claimed due to an error. Some workplaces do have the option to take more taxes, it's not a bad idea to do that as it does give you a buffer at tax time to ensure you get a better return. But even then if a mistake is made and you claim too much money back it could bite you in the ass years down the line. That's why I leave it up to a pro. A pro is less likely to make a mistake and is also more likely to know of any new incentives/rules you can take advantage of to maximize your return. Something a computer program won't be able to do for you. It's like saying that just because you have AutoCAD you can design and build a house.

You're telling me over half your income goes to taxes?

 

[Red Squirrel]

You're telling me over half your income goes to taxes?

In some form or the other about half of what you make is taxed. You lose about 30% right off the bat as income tax before you see it, then there's 15% sales tax on everything you buy, then there's property tax. Then there are other oddball things that might have their own tax on it too, like gasoline and certain types of savings accounts. (though I use my TFSA only so don't get taxed) I think you also pay taxes on stocks, but not too sure how that works as I've only bought a handful of stocks. Though I did sell some this year so not really sure how that works, I assume I'll get something in the mail that I'm suppose to give to my tax person? They also want to start charging tax for crypto transactions, but I have not gotten too deep into that yet, mostly because I don't even know how it works or what I'm suppose to do to pay it. Crypto is kind of the wild west, I doubt transactions will generate anything that gets sent to my real mail so I'm not sure how I'm even suppose to claim it.

But long story short, with all the taxes from every direction, about half of what you make is taxed in some form or the other.

Another fun one is if you sell/buy a car. That same car gets taxed over and over again every time it changes hands.

 

[Darwin333]

Yep exactly. Often times they will wait many years before they decide to attack too. So you end up owning tons of money plus interest. I've heard some horror stories of people owing 10's of thousands or even 100's. Most people won't have that kind of money lying around. More than half the money you make is tax money, that accumulates FAST over years if it's not fully claimed due to an error. Some workplaces do have the option to take more taxes, it's not a bad idea to do that as it does give you a buffer at tax time to ensure you get a better return. But even then if a mistake is made and you claim too much money back it could bite you in the ass years down the line. That's why I leave it up to a pro. A pro is less likely to make a mistake and is also more likely to know of any new incentives/rules you can take advantage of to maximize your return. Something a computer program won't be able to do for you. It's like saying that just because you have AutoCAD you can design and build a house.

Not to mention, at least in the US, that if my CPA makes a mistake the IRS usually waives all fines and penalties. You still owe the tax but that is it. Since I don't cheat the only way I'm getting audited is if it's a mistake. Not only is a CPA far less likely to make a mistake but if he does I'm very unlikely to face stiff fines.

 

[Darwin333]

Another fun one is if you sell/buy a car. That same car gets taxed over and over again every time it changes hands.

Same thing with a house or really any property of sufficient value to tax.

 

[s0me0nesmind1]

Not to mention, at least in the US, that if my CPA makes a mistake the IRS usually waives all fines and penalties. You still owe the tax but that is it. Since I don't cheat the only way I'm getting audited is if it's a mistake. Not only is a CPA far less likely to make a mistake but if he does I'm very unlikely to face stiff fines.

Are your taxes really that complicated? IIRC you're in Texas - after the latest tax reform it's going to be damn hard to itemize on a tax return unless you're richie rich.

 

[Darwin333]

Are your taxes really that complicated? IIRC you're in Texas - after the latest tax reform it's going to be damn hard to itemize on a tax return unless you're richie rich.

What does Texas have to do with federal taxes? I'm not all that worried about the state IRS, it's the fed IRS that I don't want to fuck with. And it isn't that they are all that complicated it's just that having a CPA doing them is pretty cheap all things considered and I look at it as a cheap insurance policy against serious FUBAR.

 

[s0me0nesmind1]

What does Texas have to do with federal taxes? I'm not all that worried about the state IRS, it's the fed IRS that I don't want to fuck with. And it isn't that they are all that complicated it's just that having a CPA doing them is pretty cheap all things considered and I look at it as a cheap insurance policy against serious FUBAR.

It has to do with texas based on what is considered a deduction. For example - in Texas, we don't have a state income tax - so we can't take a deduction for it. We do have property taxes and can make a deduction for it - but we have very low home values, and thus pretty low property tax amounts.

To each their own... personally I find a $300-500 to file a return to be a lot considering the simplicity of it if you take the standard deduction. You can literally pencil it in.

 

[Red Squirrel]

What does Texas have to do with federal taxes? I'm not all that worried about the state IRS, it's the fed IRS that I don't want to fuck with. And it isn't that they are all that complicated it's just that having a CPA doing them is pretty cheap all things considered and I look at it as a cheap insurance policy against serious FUBAR.

Pretty much this. I have to laugh at people who pay upwards of $60 for a tax program that is only good for one year because you need the updated version the next year. Paying that kind of money is ok if you are a CPA because you'll use it for a lot of people but it makes no sense to pay for it for one or two people when you can pay a CPA to get it done and it's zero hassle to you. Mine charges around $45 or so.

 

[Darwin333]

It has to do with texas based on what is considered a deduction. For example - in Texas, we don't have a state income tax - so we can't take a deduction for it. We do have property taxes and can make a deduction for it - but we have very low home values, and thus pretty low property tax amounts.

To each their own... personally I find a $300-500 to file a return to be a lot considering the simplicity of it if you take the standard deduction. You can literally pencil it in.

I don't pay $300 as my taxes are fairly simple. I pay a little bit more than I would if I bought a program to do it but I get a shit ton more expertise and protection. Like I said, dirt cheap insurance policy against getting anally raped sans lube or even a courteous spitting on it by the IRS.

 

[Darwin333]

Pretty much this. I have to laugh at people who pay upwards of $60 for a tax program that is only good for one year because you need the updated version the next year. Paying that kind of money is ok if you are a CPA because you'll use it for a lot of people but it makes no sense to pay for it for one or two people when you can pay a CPA to get it done and it's zero hassle to you. Mine charges around $45 or so.

Yeah and try getting normal support from one of those programs owners much less support when you are getting audited. I'm sure for an extra $X they will sell you some sort of BS audit protection with a CSA that is 80 pages long and would require hiring a lawyer to actually understand exactly what you will get.

 

[s0me0nesmind1]

I don't pay $300 as my taxes are fairly simple. I pay a little bit more than I would if I bought a program to do it but I get a shit ton more expertise and protection. Like I said, dirt cheap insurance policy against getting anally raped sans lube or even a courteous spitting on it by the IRS.

Hate to say this, but it's very likely you're taking the standard deduction if he is charging that amount. If you're taking the standard deduction there is literally a 0% chance of you being audited. Because every single person is entitled to take the standard deduction.

Don't be that scared of the IRS. If you think they will come after you, it's because you knowingly did something.