TNL US Tax Thread 2011

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Originally Posted by Cowutopia

why on earth would I want to talk about taxes.

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It's fun!

So what's new this year, you would ask but aren't because you really don't care? A few things.

· Because Emancipation Day is on April 15, the filing deadline this year is April 18.

· Some of you have to wait until February 14 to file - I don't think most anyone here would claim the educator expense or secondary education adjustments (as most of you would rather claim the credit for the latter), but this delay also applies to those of you who file Schedule A. Those Lame Duck sessions changed quite a bit of the US Code (such as renewing the estate tax, adding Title 51, and drastically altering the transportation code) and kept everyone on edge until the new year, so the IRS had to wait until that all resolved.

· No more paper forms or instructions are automatically sent out. Granpa needs to ask to receive them in the mail if he still doesn't trust computers.

· Starting this year, paid preparers need to pay the IRS to renew their PTINs. There will be an competency exam and CPE requirements imposed by the IRS on all paid preparers starting some time in 2011, but the exam and timing of it all hasn't been specified yet. Going to a chain tax preparation service (like HR Block) is still a crap shoot as of right now.

As for my personal situation, I'm hoping to have a moderate ~$500 Federal return. One surprise came in my receipt of a 1099 MISC for a bonus payment for my tax service work last year, which means that whatever return I would have otherwise received will probably be reduced by about $300. A lot of my former co-workers are going to be pissed when they get their own. Depending on what my return is I may have to add another exemption to my W4.

As a reminder, I am an enrolled agent, and in order to earn the CPE needed to join the NAEA, I'm about to complete a course from reading this book (which I just received today): Stand Up To The IRS, so I'll soon have some fresh knowledge about the collection process and other things.

If you have questions, shoot me a note or find me on #tnl.

LOL @ the IRS testing the competency of others.

I bet your life is boring.

Sick burn, bro. You got me pegged.

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Originally Posted by MarkRyan

LOL @ the IRS testing the competency of others.

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All I can really hope is that it does shake some idiots out of the business.

I mean, it is within the IRS's scope to set whatever rules they want for distributing PTINs, it is in their interest to make sure idiots aren't preparing returns, and maybe the costs required to set and administer all of this will be less than what it costs to fix and remedy all the issues which arise from bad returns prepared by bad paid preparers. A lot depends on how stringent the examination and CPE requirements will be.

I am not looking forward to spring, I am going to have to pay a lot of money.

That's better than getting a return, really.

Except I haven't saved any money for paying.
They joys of being "self-employed".

It turns out that after getting married, apparently I didn't fill out the w4 correctly and I'm not having enough tax taken out and have to pay quite a bit. Crap. The amount my wife has paid may balance it out if we file jointly, but that still sucks.

Also, I hate some of the people around here whose tax refunds constitute a significant portion of their yearly income because they can't hold a steady job but pop out 15 babies.

I'll be getting a return, since I bought a house last year, but I will take that refund amount and use it to estimate how I should change my withholding for next year (this year).

I should be getting a nice return this year. Also: don't pay anyone to do your taxes for you, it takes 15 minutes and it's fucking easy.

If you're an adult, it takes more than 15 minutes and it's entirely understandable if you need someone who knows what they're doing to fill them out.
But these Earned Income Credit faggots who pay H and R Block hundreds of dollars so that they can file a 1040EZ and get a loan against their return are beyond retarded.

I'm not really looking forward to this year. I'm going to get a good sized return on what I paid this year, but I also have to pay for like $4000 worth of freelance I did a couple of years ago. I'm just going to go to a real tax guy and have him figure it out this time.

I dunno man, I told you I used to do actuarial work and got the fuck out. I don't find the playing with numbers and law much fun. You're just in another part of it.

But hey, I got friends who love it. They don't go out much.

Then again I have no idea what you do in your free time. Right now it looks like you're talking about taxes.

First year married. Wife and I are getting back around $5,000 (we made about $75,000). We would've gotten a lot more had we made less, but then we wouldn't have made that much money and that wouldn't be good. I didn't realize that the breaks you get as a married couple were as much as they were. Hopefully my income is a little more consistent this year and I can make the proper adjustments to my W4's but it's tough to peg down exactly how much I'm going to make (same with my wife).

I think they make up the rules for returns year by year. This year I'm getting almost 40% back. Last year I got 9% back. The year before I made less than $20k and owed. And fuck the state of MD for never giving me shit back.

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Originally Posted by Hubbitron

I think they make up the rules for returns year by year. This year I'm getting almost 40% back. Last year I got 9% back. The year before I made less than $20k and owed. And fuck the state of MD for never giving me shit back.

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State taxes are a bitch but they really don't come out to be all that much. I have to pay pretty high local taxes for the miserable town that I work in but when I actually thought about the amount, it was pretty much non-existent in the grand scheme of things.

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Originally Posted by Gohron

$75,000.

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How much are you making as a cook if you don't mind? I'm curious to the difference in our areas.

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Originally Posted by icarusfall

How much are you making as a cook if you don't mind? I'm curious to the difference in our areas.

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I'm making $12/hr where I am now and will likely be making $14 or $15 after my first 90 days at my new job. My wife makes more money than I do right now.

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Originally Posted by GohanX

Also, I hate some of the people around here whose tax refunds constitute a significant portion of their yearly income because they can't hold a steady job but pop out 15 babies.

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Fucking kid I work with is on welfare and makes $8.75/hr. He has a fat wife that doesn't work and two kids. Supposedly he gets about 10k back. You should not be allowed to get back more than you put in and if you almost double your yearly bring home pay by getting a large tax refund you should not be on welfare.

Start pay around here's about $10, so it's similar. You've got a couple years/restaurants under you, right?

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Originally Posted by icarusfall

Start pay around here's about $10, so it's similar. You've got a couple years/restaurants under you, right?

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Yeah, I'm about 5 years in and have been a line cook now for 3+ years. My new job is at a classic fine dining restaurant where I'll be starting out as I guess what you could call the "pantry chef". I'll be responsible for specials and working with the pastry chef on desserts and the like. I'm hoping to be sauteing there pretty quick though.

I am making net under poverty this year I think, whoooo!

I'm getting like a $1600 refund. Love taxes. (only made 3 months worth of salary)

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Originally Posted by Rich

I'm getting like a $1600 refund. Love taxes. (only made 3 months worth of salary)

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http://www.the-nextlevel.com/tnl/att...1&d=1296332074

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Originally Posted by GohanX

It turns out that after getting married, apparently I didn't fill out the w4 correctly and I'm not having enough tax taken out and have to pay quite a bit. Crap. The amount my wife has paid may balance it out if we file jointly, but that still sucks.

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You have this all backwards. It sounds like you got it exactly right.

I'm venturing into the world of capital gains this year, so I suspect I am going to have to pay more than usual. Thankfully, my last promotion also doubles the percentage of my bonus and increased the base it is against.

I like getting a return though. It's just my personality; I forget about that money, don't budget for it and then it shows up.

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Originally Posted by Yoshi

http://www.the-nextlevel.com/tnl/att...1&d=1296332074

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I started working in October. I couldn't have been bothered to figure out how much I should have been paying for 3 months instead of the full year. I'd rather just give them a $1600 interest free loan for 4 months when current rates are at a whopping 1%. So it cost me what, $6 in opportunity cost? Oh yes, what a jackass I am.

My significant other was only employed for a portion of this year so that wound up messing up my deductions. Will wind up paying federal taxes, but most of that is returned in my state.

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Originally Posted by Rich

I started working in October. I couldn't have been bothered to figure out how much I should have been paying for 3 months instead of the full year. I'd rather just give them a $1600 interest free loan for 4 months when current rates are at a whopping 1%. So it cost me what, $6 in opportunity cost? Oh yes, what a jackass I am.

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What did the market do in the last four months? Your alternatives include more than a basic savings account.

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Originally Posted by Yoshi

What did the market do in the last four months? Your alternatives include more than a basic savings account.

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Considering my only investment in the market right now is in my 401k, and I would not have increased that if I were paying less taxes, the money would have been sitting in my savings and will continue to sit in savings until it reaches a sizable enough amount to make investments worthwhile.

$1,600 isn't enough to make an investment worthwhile? Seriously?

Isn't Rich an Economist? That doesn't bode well for your career...

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Originally Posted by Yoshi

$1,600 isn't enough to make an investment worthwhile? Seriously?

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Not when I don't have that much money at the moment with rent checks due, I'd rather be risk adverse until I have a comfortable safety net.

And no, I'm not an Economist. I was just an econ major.

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Originally Posted by Rich

I started working in October. I couldn't have been bothered to figure out how much I should have been paying for 3 months instead of the full year. I'd rather just give them a $1600 interest free loan for 4 months when current rates are at a whopping 1%. So it cost me what, $6 in opportunity cost? Oh yes, what a jackass I am.

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Opportunity cost you lost, correct. But you're not giving anyone an interest free loan.

I wouldn't take on too much risk with $1600 in capital either, just use it to build off in terms of maintaining liquidity. Or if you have debt servicing costs greater than what you could have earned and don't need that $1600 for operating cash flow, you should have paid down principal.

Getting nearly $5k back, would have been more but my wife's employer has a pre tax 401k program that she is enrolled and really fucks up the return. Most of the money we are getting back is going toward our shrinking debt. Hopefully by next year we will be debt free and have both of our vehicles paid off!

I'm actually going to do this tonight.

I should be getting an $800 federal refund. That's stupid. It's weird making actual money. I made 43k this year and was not promoted to full time until the end of february, so that's 2 months at part-time pay, and I just got a raise like a month ago with my promotion. I'm up for another raise next month. Next year looks promising. 50k?

I'll have to start paying attention to managing my money now. I'm almost 100% debt free as it is, and then it's time to start looking into investments and protecting my shit.
I've got to shop around on my car insurance too.

My refund was $1 before I put in my student loan interest.

Whole Foods got that shit on lock down.

I was at +447... until I filled out Schedule M. I forgot they continued that into this year.

Dammit. Oh well. My next year might be totally different so hopefully I improve.

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Originally Posted by FirstBlood

My refund was $1 before I put in my student loan interest.

Whole Foods got that shit on lock down.

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God damn! You win. Impressive.

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Originally Posted by Gooch

you're not giving anyone an interest free loan.

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What would you call it? Not trying to be a bitch, genuinely curious. I mean, yes, excessive withholding is not the same as a bank loan, but what is a better simple phrase to convey the point?

I was hoping you'd post here after I read the article you posted about corporate taxation. I assume that tax discussion doesn't interest you as much as economics but if anything I'd like to hear your general stance on how things are or what needs to be addressed.

ps: I can only imagine what your Schedule D looks like.

Should be getting $550 or something like that back. As I was expected to have to pay taxes instead of getting anything back, I'll take it.

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Originally Posted by dog$

What would you call it? Not trying to be a bitch, genuinely curious. I mean, yes, excessive withholding is not the same as a bank loan, but what is a better simple phrase to convey the point?

I was hoping you'd post here after I read the article you posted about corporate taxation. I assume that tax discussion doesn't interest you as much as economics but if anything I'd like to hear your general stance on how things are or what needs to be addressed.

ps: I can only imagine what your Schedule D looks like.

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Opportunity cost. Operationally the issuer of currency does not ever need to borrow the very currency from the taxpayer who was only able to acquire it in the first place from that issuer (directly or indirectly). The IRS and Treasury don't even have each other's phone numbers.

Right now the fiscal deficit is running closeto 9% of GDP. That will probably be enough to help a continued recovery. I have heard it will contract to around 6% of GDP in 2012, so I expect a slowdown then. The markets may begin to discount this (should politicians keep this sentiment intact) around late Q3 2011.

The corporate taxation changes I'm assuming you're referring to are really accelerations of deferrals, not to dissimilar from the bonus depreciation rules. You take more of a P&L benefit today for less tomorrow. Should be somewhat supportive in the nearer term.

You can't download it because it is a function of the chipset hardware not software.

But I can link from my hard drive, right?

Despite my best efforts, I am still getting a state refund this year. I think it's almost impossible to owe NC money. I owe the feds less than I thought I would despite having to log a bunch of capital gains this year. Some of them were even short term at the higher rate.