Oh No I'm on Welfare

[Lewkowski]

Actually I'm not. However I did recently complete my taxes and I will be getting more money back on my tax return then I paid in income taxes. How did this happen? Luke + Make Work Pay. I join the 47% of Americas who share no federal income tax burden.

http://money.cnn.com/2009/09/30/pf/t...axes/index.htm

Sigh. While I'm glad I don't have to pay taxes it is kind of stupid. Yes I still have to pay the pay roll taxes but still. When you have almost half of the population not having to pay Federal Income Tax, what is to prevent the voters from simply voting more benefits? After all someone else is paying for it.

[Being]

Actually I'm not. However I did recently complete my taxes and I will be getting more money back on my tax return then I paid in income taxes. How did this happen? Luke + Make Work Pay. I join the 47% of Americas who share no federal income tax burden.

http://money.cnn.com/2009/09/30/pf/t...axes/index.htm

Sigh. While I'm glad I don't have to pay taxes it is kind of stupid. Yes I still have to pay the pay roll taxes but still. When you have almost half of the population not having to pay Federal Income Tax, what is to prevent the voters from simply voting more benefits? After all someone else is paying for it.

THAN. The word is THAN. Then is not the same as than. Are you incapable of learning one simple thing in 10 years?

[GGT]

Did you update your dependents after he was born? Do it right and they'll take less out in the first place.

You just gave Uncle Sam a free loan with your money, and lost the (paltry) interest income you could have gained.

(which they then tax but you get the point)

Also--THAN

[Lewkowski]

Let me clarify. I'm not just getting refund. I'm actually getting money from the government in excess to what was withheld.

[Being]

Let me clarify. I'm not just getting refund. I'm actually getting money from the government in excess to what was withheld.

Have you thought about seeking a better paying job?

[GGT]

Wouldn't adjusting your withholdings and/or itemizing deductions work out better? I know people like 'refunds' but it's (usually) better to come out even, or to owe at filing.

Gosh I hate our tax codes.

[Ominous Gamer]

I guess Lewk missed the thread where I was talking about Brandy getting $6,000+ plus back, which is more than half her total income for the year...

[GGT]

Did I miss that thread too OG? Don't forget both you guys had babies in '09, with medical costs for babe and mother.

Brandy makes less than $12,00/year? I hope that's part-time...gulp

[Ominous Gamer]

I'm pretty sure you saw that, I'm pretty sure you claimed I'm bad at managing money in that thread.

Brandy works 2 days a week, the days I don't work. She makes between $90 and $150 a week. We don't need it to get by, but she wants to work. So whatever.

[Lewkowski]

Wouldn't adjusting your withholdings and/or itemizing deductions work out better? I know people like 'refunds' but it's (usually) better to come out even, or to owe at filing.

Gosh I hate our tax codes.

Well yeah I could adjust my withholding and have the IRS take out nothing... Because they are paying me for tax year 2009. Honestly I was quite shocked that the government is paying me money.

On my withholding I'm selecting 3 so it should assume that its me +2 kids or me + wife and kids. I'll make an adjustment too it. Keep in mind last year I also got a refund but I did pay like 2% of my income in taxes after it was all sorted out. I''m making over 10% more this year then last year and instead of paying a very low amount in taxes I'm actually get money from the government. Once making work pay part of the stimulus expires I'd be paying taxes. Plus I intend to make more 2010 then I did in 2009.

Have you thought about seeking a better paying job?

Within the company sure. I started at 25k base salary about three years ago and am at around 38k now. When you factor in potential bonus and overtime its over 40k. The job gives me great benefits and a good match on my 401k. My goal for the next 2-3 years is to move up into management.

[GGT]

OG, ok I remember now (but not the title). You were talking about the child deduction not being needed for other people, that being married is a tax liability, and how you were broke and in debt but taking a Disney Cruise. That one?

[Ominous Gamer]

That be the thread

[Ominous Gamer]

I'm not making out as well as Brandy, but I'm also getting more money back than I gave in.

[GGT]

$ you gave them = 2,330
Your refund = 2,977

Basically, you're paying about $600 in taxes on income of $30,000 because you have a child.

How's it work out on a joint return?

[Ominous Gamer]

If you can only file jointly if you're married...no?

My EIC was only $800 something, Brandy's was over $4,000.
If Brandy claims all 3 kids, her return only goes up by about $600.

[GGT]

I don't have a clue what the rules are for filing jointly. But if married couples can file separate returns.....

You should enter a practice return in your computer as a married couple and see how it's different, both in federal and state.

*grumbles some more about the tax code that even our Sec of Treasury couldn't figure out properly*

[Ominous Gamer]

Florida doesn't have a state return, and I looked it up, you have to be married to file jointly. I get bored later I might play around see how the return would change.

[Ziggy Stardust]

Lewk, I remember your sentiment, no taxes and if you want to give to the poor, then give on your own account. As I proposed quite some times, there's always the option of refunding your refunds to your nearest local rich guy, who was in your opinion taxed to heavily by the socialist tax schemes of Mr. Obama. Not only is it an option, but I feel your ideology really forces you to do so.

Don't just walk the walk. Put your money where your mouth is.

[Hazir]

I'm trying to wrap my mind around it, but can't quite manage. You actually get more back than is being withheld? How's that for socialist redistribution of wealth. The other day I read little rhyme about taxation that seems to apply here 'don't tax you, don't tax me, tax the man behind the tree'.

[EyeKhan]

Actually I'm not. However I did recently complete my taxes and I will be getting more money back on my tax return then I paid in income taxes. How did this happen? Luke + Make Work Pay. I join the 47% of Americas who share no federal income tax burden.

http://money.cnn.com/2009/09/30/pf/t...axes/index.htm

Sigh. While I'm glad I don't have to pay taxes it is kind of stupid. Yes I still have to pay the pay roll taxes but still. When you have almost half of the population not having to pay Federal Income Tax, what is to prevent the voters from simply voting more benefits? After all someone else is paying for it.

Get a real job, slacker. I'm sick of suporting lazy asses who don't pay taxes and then turn around and bitch about it. Loser

[Hazir]

Get a real job, slacker. I'm sick of suporting lazy asses who don't pay taxes and then turn around and bitch about it. Loser

YOu claim to be the 'man behind the tree'?

[EyeKhan]

YOu claim to be the 'man behind the tree'?

Yeah, that's me. But because I'm not a fool, I'm happy to pay taxes because with taxes I pay for civilization. I just wish the government spent less tax on invading countries that couldn't possibly threaten us in lieu of good police work and sensible security. And I'd like to see less tax money spent on old, missionless cold war weapons systems that are funded because parts for them are made in all 40+ congressional districts.

[']['ear]

THAN ffs.

PS LIbrulz.

[Loki]

Yeah, that's me. But because I'm not a fool, I'm happy to pay taxes because with taxes I pay for civilization. I just wish the government spent less tax on invading countries that couldn't possibly threaten us in lieu of good police work and sensible security. And I'd like to see less tax money spent on old, missionless cold war weapons systems that are funded because parts for them are made in all 40+ congressional districts.

Only about a fifth of the budget is going on the military, and the wars are taking up a seventh of that. Since you love paying taxes so much, why don't you pay more than is necessary?

[Steely Glint]

Is there actually a procedure for that?

[Loki]

Is there actually a procedure for that?

Sure. Don't deduct anything.

[EyeKhan]

Only about a fifth of the budget is going on the military, and the wars are taking up a seventh of that. Since you love paying taxes so much, why don't you pay more than is necessary?

I'd rather have my congressman pass legislation to make you pay more than necessary. Oh, wait. You don't pay any taxes.

Only 20%... Jesus Loki.

[EyeKhan]

Is there actually a procedure for that?

In the past I've accidentlally paid too much and the Federal government sent me a refund check months later. Didn't pay interest though.

[Lewkowski]

I'm trying to wrap my mind around it, but can't quite manage. You actually get more back than is being withheld? How's that for socialist redistribution of wealth. The other day I read little rhyme about taxation that seems to apply here 'don't tax you, don't tax me, tax the man behind the tree'.

Yeah I'm not happy about it in principle. However I do pay SS taxes, Medicare taxes and Property Taxes. Oh and lets not forget sales tax and registration taxes. But still I think the tax code is ridiculous. Why am I getting money from Uncle Sam?

[wiggin]

Is there actually a procedure for that?

One can easily do it in two ways: either one can intentionally choose less tax-efficient ways of filing taxes (e.g. using different deductions, not claiming credits that one can, etc.). Much more easily, though, is that since 1961 one can write a check to the Treasury's Bureau of Public Debt to pay off a chunk of the national debt. In effect, it reduces the deficit by a tiny amount for the coming year. Given that we're talking about ~$39,000 per person in the US, though, it's unlikely a little contribution will cover that much. They normally net a few million dollars a year in donations.

One could make a good argument, though, that rather than giving the government more, one should spend extra money doing one of two things:

1) Invest in the growth of the US economy - if GDP grows, tax receipts increase and debt as a percentage of GDP drops. Invested wisely, each dollar invested in the economy would go farther than just handing it to the government.

2) Invest in lobbying/etc. arguing for comprehensive reform of entitlements and stricture budget rules to keep budget deficits down to below 3% of GDP indefinitely. This is what's really needed to actually change the fiscal outlook.