Happy Tax Day

[zitorocks]

Or not...I paid mine today. I had a conversation with my accountant asking him why since the cost of living has increased by 30% over the past few years that the IRS has not increased the thresholds for each tax bracket? Basically we are paying more taxes on less money. Now even low-middle class is having to pay more.

Also, if you haven't done this...I've been paying my taxes each year on my Southwest Airlines card and getting the miles. The fee is like 1.8% but the amount of points you'll get is worth much more than the 1.8% fee. If you can get cash back at 3%, even better. It helps me keep my A-List Preferred status at least.

 

[Canyon.usc]

Or not...I paid mine today. I had a conversation with my accountant asking him why since the cost of living has increased by 30% over the past few years that the IRS has not increased the thresholds for each tax bracket? Basically we are paying more taxes on less money. Now even low-middle class is having to pay more.

Also, if you haven't done this...I've been paying my taxes each year on my Southwest Airlines card and getting the miles. The fee is like 1.8% but the amount of points you'll get is worth much more than the 1.8% fee. If you can get cash back at 3%, even better. It helps me keep my A-List Preferred status at least.

Nice Zitorocks for your cr card SW Air rewards program. You must fly a lot? We have the Wells Fargo cr card, 2% cash back on every purchase $1 amount. Many other cr cards have weird cash back metrics (confusing).

You're so right about da IRS but you must include Calif state tax rates too. For 2023 we had a slight increase in taxes from last year tax rates. Not too bad. Europe has high flat rates, ouch: England 45%, France 54%, Spain 54%, Germany 47% tax rates. Nuts. Remind me not to move to Europe.

 

[zitorocks]

Nice Zitorocks for your cr card rewards program. You must fly a lot? We have the Wells Fargo cr card, 2% cash back on every purchase $1 amount. Many other cr cards have weird cash back matrics (confusing).

You're so right about da IRS but you must include Calif state tax rates too. For 2023 we had a slight increase in taxes from last year tax rates. Not too bad. Europe is crazy: England 45%, France 54%, Spain 54%, Germany 47% tax rates. Nuts. Remind me not to move to Europe.

Yeah nuts in Europe. I live in Texas so no state income tax for me. I also don't have to pay property tax due to my military service/VA rating.

I'm also still perplexed why we aren't allowed to deduct every red cent of sales tax we pay each year. You pay sales tax and then also pay income taxes on the exact same money. If your sales tax is 8-10%, you should be able to deduct that 8-10% from your income. If that's not double taxation, I don't know what is. But maybe someone can explain it to me better.

 

[4thamp1]

 

[Gold Trojan]

Got to keep all those on the government dole afloat.

 

[Canyon.usc]

I'm also still perplexed why we aren't allowed to deduct every red cent of sales tax we pay each year. You pay sales tax and then also pay income taxes on the exact same money. If your sales tax is 8-10%, you should be able to deduct that 8-10% from your income. If that's not double taxation, I don't know what is. But maybe someone can explain it to me better.

Bruddah, we used to be able deduct sales tax on Schedule A on 1040 form (qualified itemize deductions), but da IRS took it away sometime, around 2005? Note one either does Schedule A or Standard Deductions. As you know house loans interest is da biggest itemization. So if your house is paid up, most likely you won't qualify for Schedule A or just go with Standard Deduciton route...

 

[Rodgarnay51]

Or not...I paid mine today. I had a conversation with my accountant asking him why since the cost of living has increased by 30% over the past few years that the IRS has not increased the thresholds for each tax bracket? Basically we are paying more taxes on less money. Now even low-middle class is having to pay more.

Also, if you haven't done this...I've been paying my taxes each year on my Southwest Airlines card and getting the miles. The fee is like 1.8% but the amount of points you'll get is worth much more than the 1.8% fee. If you can get cash back at 3%, even better. It helps me keep my A-List Preferred status at least.

Happy tax day?! ‍ Isn’t that kind of an oxymoron these days?

 

[zitorocks]

Bruddah, we used to be able deduct sales tax on Schedule A on 1040 form (qualified itemize deductions), but da IRS took it away sometime, around 2005? Note one either does Schedule A or Standard Deductions. As you know house loans interest is da biggest itemization. So if your house is paid up, most likely you won't qualify for Schedule A or just go with Standard Deduciton route...

I most definitely have to itemize. Haven't been about to use the standard deduction since I was in the military. You are able to deduct a small amount of sales tax...but there's a cap. My mortgage is at 2.25% so needless to say I will take the full 30 years with that mortgage. It's literally making me money. The bank hates me.

 

[zitorocks]

Happy tax day?! ‍ Isn’t that kind of an oxymoron these days?

Most definitely.

 

[CP619]

Worst day of the year. It should be a national holiday.

 

[Fan1965]

I hate tax time as I always owe. One thing I always try to avoid is, paying someone else to file my taxes which is a rip off in my opinion, that is if you are single a d using the standard dductions. I know some people that use to file their own federal taxes long back then when they had the 1040 EZ forms, but the IRS did away with that and now they pay others or pay online services to do their taxes.

 

[Pudly76]

I hate tax time as I always owe. One thing I always try to avoid is, paying someone else to file my taxes which is a rip off in my opinion, that is if you are single a d using the standard dductions. I know some people that use to file their own federal taxes long back then when they had the 1040 EZ forms, but the IRS did away with that and now they pay others or pay online services to do their taxes.

I pay others so they’ll rep me if I’m audited again or there’s any other issues. They came after me one year saying I didn’t file even tho my wife and I always file jointly. They attached all my accounts, emptying my checking and causing me to bounce checks all over town, including car and house payments. The penalty and fees for just the checks bouncing both by my bank and those to whom I wrote the checks to was crazy unto itself.
Then when the issue was resolved, I never even got an “oops, sorry, our fault “.

 

[xuscx]

I hate tax time as I always owe. One thing I always try to avoid is, paying someone else to file my taxes which is a rip off in my opinion, that is if you are single a d using the standard dductions. I know some people that use to file their own federal taxes long back then when they had the 1040 EZ forms, but the IRS did away with that and now they pay others or pay online services to do their taxes.

I spend a lot of time on taxes to make sure I get it right. That is the single most important item in preparation to avoid an IRS review, accuracy. Its all one big computer program, if nothing flags, you are good. Also spend a lot of time making sure I did not forget anything. I really do not trust handing it over to someone else, who is going to hand it over to a bookkeeper to punch in numbers.

 

[Morley Drury]

Or not...I paid mine today. I had a conversation with my accountant asking him why since the cost of living has increased by 30% over the past few years that the IRS has not increased the thresholds for each tax bracket? Basically we are paying more taxes on less money. Now even low-middle class is having to pay more.

Also, if you haven't done this...I've been paying my taxes each year on my Southwest Airlines card and getting the miles. The fee is like 1.8% but the amount of points you'll get is worth much more than the 1.8% fee. If you can get cash back at 3%, even better. It helps me keep my A-List Preferred status at least.

The IRS doesn't set the rates, Congress does, FWIW.

 

[Canyon.usc]

I remember when Trump was President and da Democrats went after him for not paying taxes. He replied, "I have smarter tax accountants than you." Hell dat's so true, good tax accountants and tax attorneys do an amazing job for wealthy people & their tax returns...

 

[Pudly76]

I remember when Trump was President and da Democrats went after him for not paying taxes. He replied, "I have smarter tax accountants than you." Hell dat's so true, good tax accountants and tax attorneys do amazing job for wealthy people in their tax returns...

Even those not so wealthy..

 

[Trojan JST]

Worst day of the year. It should be a national holiday.

2024 Tax Freedom Day is on Thursday April 18th (TODAY)

Tax Freedom Day is how long (into the year) one must work, until their taxes for the year have been “earned.”

In 2024 its…
29.5% of the year’s total days, of the year.
Which equals to: 80 each (8 hour) work days or, 3,200 work hours.




Tomorrow will be the first day of 2024, you’ll begin earning money for yourself.