US Taxes 2008

[Duke]

So, who owes, and who is owed this year?

My first pass indicates that I'm going to owe Uncle Sam about $1700 and the state another $700.

Even more bad news? Contributing more to my IRA won't help - I make too much money anyway. In their eyes, at any rate, even though we're far from "rich".

 

[Danoff]

Too much for a traditional or too much for a Roth?

I discovered that I make too much to qualify for the "fixed" version of the AMT. It's the broken version for me.

 

[Omnis]

What is this income you speak of?

 

[Duke]

Too much for a traditional or too much for a Roth?

Either. TurboTax tells me contributing more to my IRA won't change my taxes, which TRULY sucks because I haven't contributed to my 401k since I changed jobs in September and I owe myself about $3000. It's truly going to bite writing a check to the taxman knowing I still need to write one to myself.

Especially since I want to buy some toys and do some improvements to my house.

 

[Danoff]

Either. TurboTax tells me contributing more to my IRA won't change my taxes, which TRULY sucks because I haven't contributed to my 401k since I changed jobs in September and I owe myself about $3000. It's truly going to bite writing a check to the taxman knowing I still need to write one to myself.

Especially since I want to buy some toys and do some improvements to my house.

Of course you know this, but you could contribute to a traditional anyway so that it can grow tax free even though it's not deductible. We're planning on doing that before April.

 

[Duke]

Oh, yeah, I can and will contribute - it would just be a little nicer if that was buying down my owed taxes as well.

 

[Danoff]

Oh, yeah, I can and will contribute - it would just be a little nicer if that was buying down my owed taxes as well.

True. But if you don't even qualify for a Roth, those days are looooong gone my friend.

I'm pissed because congress gets to claim that they fixed the AMT crisis and helped everyone out, even though they put a catch in there that leaves the full, not-adjusted-for-inflation, BS problem for those of us who make over a certain amount.

 

[V1P3R]

What is this income you speak of?

Isn't that the truth...

 

[niky]

What is this income you speak of?

Isn't that the truth...

+1 I think my income is about $12,000 a year. Thank Hepzibah for cheap Asian food.

 

[Kylehnat]

I owe Uncle Sam $327. I think I'll keep that in my bank account until April 14th or so .

 

[YSSMAN]

Between the Feds, the State of Michigan and the City of Grand Rapids, I should be getting about $600 worth of checks back to me. The Michigan check came first, but I'll deposit that on Friday.

Also, the Bush cash-out from China should net my family about $1800, or $600 per person, so thats a nice bonus as well.

And, I'm not sure if I can really call it a "tax rebate," but Aquinas College does owe me $300 for overpaid tuition costs which have been placed in a lovely bank account. That shall be placed into my growing debt-relief program as well.

===

In all, I can't complain much. But, getting a raise at work about a month ago, I have no idea how that is going to effect my taxes for next year, and furthermore, how it will effect my Federal Student Aid money that I need to apply for tomorrow...

 

[Joey D]

I still haven't gotten my W2 yet so I can't file, I've called the employer and the IRS. I'm pretty pissed over the whole thing.

 

[///M-Spec]

We should be getting back $1600 and change... Most of which is going towards the down payment on Mrs. M's new car, as will the May stimulus check. If not, then some credit card bills we piled up over the winter.

(I think we're pretty close to settling on an Audi A6 or Allroad, btw.)


M

 

[Danoff]

I'm just going to go on record here by saying that getting money back in the form a tax return is a bad thing - it means your withholding is too high and you've given the government an interest-free loan.

That being said, I am getting money back, but this was a very complex year to predict financially.

 

[Duke]

Yes, it does. However, I'm usually willing to sacrifice the small amount of interest I'm losing on that money in order to avoid having to pony up a few thousand bucks in unexpected capital gains taxes at the end of the year.

 

[Kylehnat]

I'm just going to go on record here by saying that getting money back in the form a tax return is a bad thing - it means your withholding is too high and you've given the government an interest-free loan.

I hadn't thought of it that way. You just made me feel a little bit better (It's my first year of having to pay rather than get a refund).

 

[UnoMOTO]

Unsecured investments really sucks sometimes! With the year that the market has had I am hoping that that our capitol gains will be enough to cover the tax bill. We set monies aside quarterly to avoid any Heimlich manuvers preformed on D-day.

 

[UnoMOTO]

$2600 to the IRS and $400 to my tax man. In the end it really means that we had a good year investing but it still sucks to have that check cut.

 

[Joey D]

I ended up only having to pay $120 to the state and $128 to federal, I guess it could have been worse.

 

[Pupik]

Getting back about $800 from withholding for a much-needed kid-free weekend vacation, and the stimulus check will go towards the investment portfolio/college fund.

Florida doesn't have an income tax; tourism and sales tax and old people make that happen.

 

[Omnis]

Getting back about $800 from withholding for a much-needed kid-free weekend vacation, and the stimulus check will go towards the investment portfolio/college fund.

Florida doesn't have an income tax; tourism and sales tax and old people make that happen.

and yayo makes the sales tax happen.

 

[Philly]

Looks like I get a refund of ~$220. I honestly couldn't care less about this. They already took it off my paychecks, and I have enough in the bank.

Am I the only one that doesn't feel the need for a government sponsored shopping spree bank deposit?

 

[Pupik]

and yayo makes the sales tax happen.

...and square tuna explains all the grass airstrips in the middle of the Everglades.

OT: Famine was surprised by the sales tax thing; it made me wonder how they record sales tax/VAT in other countries.

 

[Omnis]

Hahaha. 👍

I guess they include the tax in the price because VAT applies to every level of production. Still, I'd rather know/be reminded I'm paying an extra n% in taxes so when it gets to be too high people will be upset about it.

 

[FoolKiller]

We got $1,500 back. That is way up from last year, but I suspect it has to do with a near 20% pay increase and me dumping all of the last promotion's raise into my 401k. With my last pay increase I thought the jump in taxes coming out was a bit much and I guess I was right.

And we should get $1,200 from the economic "stimulus" plan.

Our return is going into the house fund and the stimulus payment is going toward an HDTV.

 

[Duke]

$2600 to the IRS and $400 to my tax man. In the end it really means that we had a good year investing but it still sucks to have that check cut.

Yeah, my investments were up a bit... until immediately after january 1.

Which means I've got a nice fat capital gains tax to pay, but I've since lost all the capital I gained.

 

[UnoMOTO]

...and the stimulus payment is going toward an HDTV.

Thank you for being the true American! I expect Mr. Bush to send you a 'thank you' letter.

Yeah, my investments were up a bit... until immediately after january 1.

Which means I've got a nice fat capital gains tax to pay, but I've since lost all the capital I gained.

Here is something that is really chapping my hide.

I am going to pay taxes on capital gains that I had this year. Check!

Next year I expect for things to take a bit of a dive. Less taxes, Check!

The year after I think it’s reasonable that those gains will be right back up to where I started. Check! CRAP...I already paid taxes on those gains two years back.

So I am fairly new to unsecured investing but am I really going to pay tax on the same dollar more then once? Do we get in this vicious cycle of up and down gains that get taxed as such?

 

[FoolKiller]

Thank you for being the true American! I expect Mr. Bush to send you a 'thank you' letter.

Yes the, most likely, Japanese economy will love it.

I was budgeting for a TV and then the government said they would give me the (my) money to do it. Who am I to argue?

 

[Pako]

Had some serious losses to write off as well as all of my dependents. I could almost get excited about the return, except it was my money to begin with. Circa $6700 from Feds, $1500 from state. Not that it's all that exciting, it was spent before I ever got it. I think I'll have a couple more kids.

 

[Danoff]

We got a little back from the Fed, but my eye is on the absolutely huge amount we shipped out in total for the year. Jeebus! I gotta figure out something to do about this AMT crap.