[crazytaxidriver]

I keep hearing all these tax arguments.. I've heard people like mark cuban say that he won't even notice a tax increase.. Now personally, I have been married for 6 years.. I have worked for 12.. In all that time the only time I've really noticed a change in my taxes is when I started electing to have my taxes based on me being married..

My question is, is it different for people who have to hire a cpa to keep their taxes in order.. Is it different for people who own their own business? Or what's the deal..

I'm middle class and the most money i've ever made was 102,000 for one year.. My wife and I both worked. and we paid in around 19000 in taxes that year..

[judgementday]

Mark Cuban can say that because he makes a crap ton of money.

I noticed a change in paying taxes when my wife and I moved to a higher tax bracket after I got a promotion. I pretty much still made the same I had been making because more taxes were being deducted.

[crazytaxidriver]

I'm basically in the same deal.. well not now. i'm laid off.. but the year i made that number above I paid the same amount of taxes that I did when we made quite a bit less.. but it's always been close to 30% of my paycheck.

[crazytaxidriver]

And that was 08 when i made money..

[Granny Bear]

Small businesses and folks with certain circumstances (i.e. rental property); who file long forms; may benefit from a CPA. I don't make a lot of money, but I use a CPA simply because my husband and I have inherited two rental properties, and I have a lot of itemized deductions that I don't want to miss out on. I've never made close to $102K/year but I do have things that I deduct that I would've never thought about had it not been for my CPA.

The biggest trick here is to find a CPA that you can trust, is honest and keeps their mouth closed about your private business; all that while not charging you a fortune to complete a tax return online.

[crazytaxidriver]

I've never used a CPA either.. But I don't have many assets or anything like that.. The 1040 ez or whatever it is usually does me just fine.. although I'm sure i have deductions but in the end i'm probably going to be paying something in anyway..

[ronald reagan]

I've never used a CPA either.. But I don't have many assets or anything like that.. The 1040 ez or whatever it is usually does me just fine.. although I'm sure i have deductions but in the end i'm probably going to be paying something in anyway..

Do you own a house? If so, the mortage deduction for interest paid is a huge tax break for many. .

[Granny Bear]

If you can use a 1040EZ, I wouldn't bother with an accountant either. However, be sure that you aren't missing out on deductions that you are entitled to take.

Most reputable CPAs will do a long filing for around $100-$250....depending on the amount of deductions and ultimate qualifying documents that you would need to submit.

After everything is said and done, if you don't save more in deductions that you pay an accountant, it's not worth it anyway.....

One more thing. The accountant that I used for years just retired...I loved him!! Anyway, he NEVER filed a tax return early in the year because (according to him and he used to work for the IRS), anyone filing before February 1 went into a "collection" that was used when drawing for random personal audits. He always advised me to file either in late March or early April.....just a tidbit for you!

[crazytaxidriver]

I usually wait for the last day anyway.. I used to own a house.. Funny story. In 08 I made the most money I've ever made.. On april 14 2009 I filed my taxes. On april 20, 2009 I took my vacation. On April 22, 2009 I got a phone call saying the job has been shut down lol..

And since the banks were all going belly up, and since the stock market decided to go haywire, and everything else that happened that year, I lost everything i own.. except my two vehicles..

[crazytaxidriver]

Plus I didn't know anything about how 401k works and what little bit I didn't lose, I lost when I decided to take it out

[ronald reagan]

If you can use a 1040EZ, I wouldn't bother with an accountant either. However, be sure that you aren't missing out on deductions that you are entitled to take.

Most reputable CPAs will do a long filing for around $100-$250....depending on the amount of deductions and ultimate qualifying documents that you would need to submit.

After everything is said and done, if you don't save more in deductions that you pay an accountant, it's not worth it anyway.....

One more thing. The accountant that I used for years just retired...I loved him!! Anyway, he NEVER filed a tax return early in the year because (according to him and he used to work for the IRS), anyone filing before February 1 went into a "collection" that was used when drawing for random personal audits. He always advised me to file either in late March or early April.....just a tidbit for you!

Interesting.

Also there's a 2nd reason to file late. If you owe money, filing late allows you to 'pay' less. This happens because of inflation and income growth, as compared to the static number of dollars you owe. The same can be said about letting the government keep your money throughout the year, and then gives it back to you the next spring. It gets an interest free loan for the year, and pays you back in last years dollars, not taking inflation into consideration. you lose money, in simple terms. This can be combatted by increasing your exemptions on your w-4 to a reasonable level to keep the taxes taken out of your check to a low level that will essentially cause a zero balance at years end. Its an instant 3-4% pay raise by doing so, and costs you nothing.

[crazytaxidriver]

Interesting.

Also there's a 2nd reason to file late. If you owe money, filing late allows you to 'pay' less. This happens because of inflation and income growth, as compared to the static number of dollars you owe. The same can be said about letting the government keep your money throughout the year, and then gives it back to you the next spring. It gets an interest free loan for the year, and pays you back in last years dollars, not taking inflation into consideration. you lose money, in simple terms. This can be combatted by increasing your exemptions on your w-4 to a reasonable level to keep the taxes taken out of your check to a low level that will essentially cause a zero balance at years end. Its an instant 3-4% pay raise by doing so, and costs you nothing.

That's essentially what I did.. I got more money on each check.. and I might have had to pay in 400 at the end of the year. but it was worth it to me to have during the year instead of getting a check at the start of the year

[Granny Bear]

Awww; I'm sorry to hear that CTD!! I really am.

Yeah, if you drew out your 401 (k) then you probably lost a good third of it in taxes and penalties. No matter how difficult the circumstances, the good ole IRS is gonna get their cut!

[Granny Bear]

Interesting.

Also there's a 2nd reason to file late. If you owe money, filing late allows you to 'pay' less. This happens because of inflation and income growth, as compared to the static number of dollars you owe. The same can be said about letting the government keep your money throughout the year, and then gives it back to you the next spring. It gets an interest free loan for the year, and pays you back in last years dollars, not taking inflation into consideration. you lose money, in simple terms. This can be combatted by increasing your exemptions on your w-4 to a reasonable level to keep the taxes taken out of your check to a low level that will essentially cause a zero balance at years end. Its an instant 3-4% pay raise by doing so, and costs you nothing.

That's exactly right! And not many people will do this. Most folks my age are so intent on paying NOTHING at the end of the year, they basicly use their refund checks as a Christmas club account with the IRS taking all the interest income from it AND being allowed the use of this money throughout the year..free.

[Granny Bear]

I'm gonna go check out the debate thread.....it's smokin'!!!!
I fully expect RR to meet TRV somewhere for a throw down!

LOL

[TheRealVille]

I'm gonna go check out the debate thread.....it's smokin'!!!!
I fully expect RR to meet TRV somewhere for a throw down!

LOL

That won't happen. I'm done wasting time with him.

[crazytaxidriver]

Awww; I'm sorry to hear that CTD!! I really am.

Yeah, if you drew out your 401 (k) then you probably lost a good third of it in taxes and penalties. No matter how difficult the circumstances, the good ole IRS is gonna get their cut!

I'll manage but thanks anyway.. I will tell you this though, I learned a whole lot that year and the couple years following on how the IRS and all that works,, I've had a lot of bad advice over the years.. but now I think I've got it figured out, on what will be best for me anyway lol

[Granny Bear]

That won't happen. I'm done wasting time with him.

I posted the link that you asked for, but it got covered up when you guys were going at it. Sorry; should've posted it originally but I got excited when you guys were going at each other.

I love following this stuff.

[Granny Bear]

I'll manage but thanks anyway.. I will tell you this though, I learned a whole lot that year and the couple years following on how the IRS and all that works,, I've had a lot of bad advice over the years.. but now I think I've got it figured out, on what will be best for me anyway lol

The best lessons learned normally follow a situation like this one.

FYI: For anymore questions about a 401 (k) or any other "qualified" assets, I would be glad to help you....just PM me.... Nuff said.

[TheRealVille]

I posted the link that you asked for, but it got covered up when you guys were going at it. Sorry; should've posted it originally but I got excited when you guys were going at each other.

I love following this stuff.

I saw it. Thanks for the link. :Thumbs:

[WideRight05]

CTD, this one is right up my alley. I'm already at 65 hours working this week (tax extension deadline) but I will have something up for you this weekend when I can post a more lengthy response.

[crazytaxidriver]

Cool.. Information is always appreciated

[Granny Bear]

CTD, this one is right up my alley. I'm already at 65 hours working this week (tax extension deadline) but I will have something up for you this weekend when I can post a more lengthy response.

Hmmmm, if I leave at 5 today, that will put me at 73 hrs for the week, not counting the ones I will put in tomorrow!! And I WILL leave at 5 because I'm not missing the HC vs WC football game tonight.
Think we may work in similiar industries!

[RunItUpTheGut]

I've been paying income taxes for 11 years now.
Of the first 4 i got every dime back where i was in college.

Over the last 7 years, ive paid in nearly 30%.
Somehow, i figure out how to get the majority of it back as well....hh:

[crazytaxidriver]

some people have it figured out lol. i don't yet..

[TheRealVille]

I've been paying income taxes for 11 years now.
Of the first 4 i got every dime back where i was in college.

Over the last 7 years, ive paid in nearly 30%.
Somehow, i figure out how to get the majority of it back as well....hh:

Are you part of the 47%?

[WideMiddle03]

Are you part of the 47%?

i know you and i aren't, not sure about him.

[crazytaxidriver]

Hmmmm, if I leave at 5 today, that will put me at 73 hrs for the week, not counting the ones I will put in tomorrow!! And I WILL leave at 5 because I'm not missing the HC vs WC football game tonight.
Think we may work in similiar industries!

Sounds like you guys need to slow down a bit. those 12 hour days are killer..

[ronald reagan]

Are you part of the 47%?

I am. AND you are paying my 'salary'. On top of that --- I'm voting for Romney. :Cheerlead

[vector]

i usually wait for the last day anyway.. I used to own a house.. Funny story. In 08 i made the most money i've ever made.. On april 14 2009 i filed my taxes. On april 20, 2009 i took my vacation. On april 22, 2009 i got a phone call saying the job has been shut down lol..

And since the banks were all going belly up, and since the stock market decided to go haywire, and everything else that happened that year, i lost everything i own.. Except my two vehicles..

obama's fault ?