MrMeanGreen Posted January 30, 2013 Report Share Posted January 30, 2013 Hey Tim, quit bitching about taxes and start return texts and PMs or something Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted January 30, 2013 Report Share Posted January 30, 2013 It used to be that, between my wife & me, we could buy outright a brand new Corvette every other year with our income taxes. At one point a long time ago, I stopped looking at tax paperwork done by our CPA because the figures made me so angry. +1 I get sick every year doing taxes... It's at the point where we look at cutting her hours more to keep us from the next bracket.... :fuuuu: Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted January 30, 2013 Report Share Posted January 30, 2013 It's at the point where we look at cutting her hours more to keep us from the next bracket.... :fuuuu: Thats....not how tax brackets work. Example: Say I made 50k in 2012 and my friend makes 60k. Tax bracket cutoff is 52k. I would pay tax rate x because i only made 50k, so my net = 50,000 - (50,000 * x) My friend's net = 60,000 - (52,000 * x) - (8,000 * y) where y = the higher tax rate paid by the new tax bracket. Quote Link to comment Share on other sites More sharing options...
Tractor Posted January 30, 2013 Report Share Posted January 30, 2013 If you speaking to me, it was annotated as Commissions, which should not be taxed this way. Bonus last quarter was nuked by taxes as well, but this is getting out of hand. yeah, I killed it on our monthly bonuses the last few months too and taxes then killed the bonuses. We need to go back to no income tax, let everything go to hell as long as I get to keep my money. hehe Quote Link to comment Share on other sites More sharing options...
coltboostin Posted January 30, 2013 Report Share Posted January 30, 2013 yeah, I killed it on our monthly bonuses the last few months too and taxes then killed the bonuses. We need to go back to no income tax, let everything go to hell as long as I get to keep my money. hehe Seriously, it is almost de-motivating to bust ass and get huge commission checks. Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted January 31, 2013 Report Share Posted January 31, 2013 Thats....not how tax brackets work. Example: Say I made 50k in 2012 and my friend makes 60k. Tax bracket cutoff is 52k. I would pay tax rate x because i only made 50k, so my net = 50,000 - (50,000 * x) My friend's net = 60,000 - (52,000 * x) - (8,000 * y) where y = the higher tax rate paid by the new tax bracket. Think about a higher bracket and then we'll talk again... Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2013 Report Share Posted January 31, 2013 Think about a higher bracket and then we'll talk again... I know how discouraging the highest tax brackets are... but what he is saying is correct. To take an example, suppose your taxable income (after deductions and exemptions) is exactly $100,000 in 2012 and your status is Married filing jointly; then your tax would be calculated like this: ( $ 17,400 minus 0 ) x .10 : $ 1,740.00 ( 70,700 minus 17,400 ) x .15 : 7,995.00 ( 100,000 minus 70,700 ) x .25 : 7,325.00 Total: $ 17,060.00 This puts you in the 25% tax bracket, since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 17%. Quote Link to comment Share on other sites More sharing options...
Brandon Posted January 31, 2013 Report Share Posted January 31, 2013 I know how discouraging the highest tax brackets are... but what he is saying is correct. Finally a good example for those folks whom may not understand the tiers, the term "effective" tax rate evolves from these discussions. Quote Link to comment Share on other sites More sharing options...
Johny Utah Posted January 31, 2013 Report Share Posted January 31, 2013 I thought Obama said taxes were going down if you made 250,000 or less a year? I made a little less this year then I did last year. And I paid more property taxes this year. I am getting less back on my taxes this year then last year. I would like to decline paying social security taxes on my paycheck. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 31, 2013 Report Share Posted January 31, 2013 I guess you guys missed the memo. Due to economic trouble and the national deficit, lubrication will no longer be provided when ass-raping working class Americans. Quote Link to comment Share on other sites More sharing options...
copperhead Posted January 31, 2013 Report Share Posted January 31, 2013 I thought Obama said taxes were going down if you made 250,000 or less a year? I made a little less this year then I did last year. And I paid more property taxes this year. I am getting less back on my taxes this year then last year. I would like to decline paying social security taxes on my paycheck. The fed has no control over property taxes, that's local. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted January 31, 2013 Report Share Posted January 31, 2013 This thread is a disaster. If you are paying 39% you are doing it wrong or lying. The fact that some of you dont understand the difference between marginal and effective tax rates is the product of willful ignorance and a symptom of why you are poor. 1 Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted January 31, 2013 Report Share Posted January 31, 2013 Um my husband is very good with our finances and investing and yes we are pretty close to that with our property, fed/state income Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted January 31, 2013 Report Share Posted January 31, 2013 Then you should pay someone else to do it. If you end the year paying 39%, w2 or 1099, you are doing it wrong. The marginal rate for a married couple is 450k. That means only income over 450k is taxed at that rate. This also does not factor for deductions which if you make anywhere near this, you should be smart enough to pay someone to find some tax shelters for you. Even paying, at most, 8% to the state it doesn't put your effective rate at 39% until you are well into the millions while taking zero deductions. My diagnosis: The culprit must be your property taxes, the tax must be, as a percentage of your income, too high. Tim, are you sure that you didn't just receive a bonus check at or above 8k that triggered a higher end of year projection? When I was a W2 commissioned employee a 10k commissioned week would pull x% more than usual. I often adjusted my I9 for that week alone to keep it in line with what my effective rate would be at the end of the year. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted January 31, 2013 Report Share Posted January 31, 2013 Then you should pay someone else to do it. If you end the year paying 39%, w2 or 1099, you are doing it wrong. The marginal rate for a married couple is 450k. That means only income over 450k is taxed at that rate. This also does not factor for deductions which if you make anywhere near this, you should be smart enough to pay someone to find some tax shelters for you. Even paying, at most, 8% to the state it doesn't put your effective rate at 39% until you are well into the millions while taking zero deductions. My diagnosis: The culprit must be your property taxes, the tax must be, as a percentage of your income, too high. Tim, are you sure that you didn't just receive a bonus check at or above 8k that triggered a higher end of year projection? When I was a W2 commissioned employee a 10k commissioned week would pull x% more than usual. I often adjusted my I9 for that week alone to keep it in line with what my effective rate would be at the end of the year. I'll defer to Jordan on this since my experience is limited to my own. What I do know is that if anyone has room to complain it is small business owners /1099 income earners (like me), but I don't because I know how to deduct effing expenses. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2013 Report Share Posted January 31, 2013 Then you should pay someone else to do it. If you end the year paying 39%, w2 or 1099, you are doing it wrong. r. I believe damreds is referring to Federal State City OASDI Property and maybe even Sales All combined EDIT I'll defer to Jordan on this since my experience is limited to my own. What I do know is that if anyone has room to complain it is small business owners /1099 income earners (like me), but I don't because I know how to deduct effing expenses. Just realized you essentially knew I was replying, just as I was doing so. *slow clap* Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2013 Report Share Posted January 31, 2013 I'll defer to Jordan on this since my experience is limited to my own. What I do know is that if anyone has room to complain it is small business owners /1099 income earners (like me), but I don't because I know how to deduct effing expenses. I am no CPA. Although I met with one for over 3 hours today on just the same subject. 1099 earners actually have the ability to lessen their burden far more so than a W2 employee. I receive W2s and 1099s. (have a couple jobs/ businesses) I can get creative with the 1099 income. Fairly screwed on the W2. Both sides have pros and cons (as with everything else in life) Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2013 Report Share Posted January 31, 2013 (Triple.... for the triple fucking we take from .gov) Year end LLC partnerships (or S corps for that matter) can be a mofo too, when profits have to pass through to the partners. Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted January 31, 2013 Report Share Posted January 31, 2013 I know how discouraging the highest tax brackets are... but what he is saying is correct. Maybe I shouldn't have used the term bracket... I am no CPA. Although I met with one for over 3 hours today on just the same subject. 1099 earners actually have the ability to lessen their burden far more so than a W2 employee. I receive W2s and 1099s. (have a couple jobs/ businesses) I can get creative with the 1099 income. Fairly screwed on the W2. Both sides have pros and cons (as with everything else in life) +1 Without posting a bunch of crap, there is a difference for us between investments, property, etc...for us. Maybe my terms are wrong but we have noticed a difference but then again this may all change again with the new tax rules and other BS headed down the pipe,..capital gains, dividends, 3.8% Medicare surtax, etc..etc..... My point is, what we pay like many others is plain SICKENING! It's not even the % but the amount that pisses me off. But lets be real, it's not like I'm Mr. Buffett that took in $63M last year and paid $7M in taxes which is only about 17%... Quote Link to comment Share on other sites More sharing options...
10phone2 Posted January 31, 2013 Report Share Posted January 31, 2013 it's all about control to keep things in place: encourage people to live off system by being rewarded for doing nothing, be overly taxed to take away opportunity, or encourage pitty for those who refuse to take care of themselves. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted January 31, 2013 Report Share Posted January 31, 2013 Yes I am referring to it all. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 31, 2013 Author Report Share Posted January 31, 2013 Tim, are you sure that you didn't just receive a bonus check at or above 8k that triggered a higher end of year projection? Yes, bonus was higher than $8k. I based my original post on my most recent paycheck stub that shows tax wise was removed for two pay periods. our year end bonus paid in January is wrapped into our commissions line item. just add up the taxes and it works out to be that percentage. I'm not talking April taxes. That's much more complicated of course. Federal Income Tax Social Security Fed. Medicare Ohio Income Tax Columbus City Tax When I was a W2 commissioned employee a 10k commissioned week would pull x% more than usual. completely understand and the above is expected, thus why back in early Dec. I moved my exemptions to claim much higher than the zero I normally have plugged in. I often adjusted my I9 for that week alone to keep it in line with what my effective rate would be at the end of the year. See above. I'm sure it helped, thus why I made the comment that I'm not going to enjoy seeing it in a couple weeks when I adjust it back to avoid getting shafted upon filing next year. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted January 31, 2013 Report Share Posted January 31, 2013 Maybe I shouldn't have used the term bracket... +1 Without posting a bunch of crap, there is a difference for us between investments, property, etc...for us. Maybe my terms are wrong but we have noticed a difference... The difference is in the payroll tax. That tax holiday that republicans had no interest in including in the fiscal cliff deal. I'd be interested in hearing how capital gains tax increases have impacted you before our quarterly payments are even due. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted January 31, 2013 Report Share Posted January 31, 2013 it's all about control to keep things in place: encourage people to live off system by being rewarded for doing nothing, be overly taxed to take away opportunity, or encourage pitty for those who refuse to take care of themselves. So the hypocricisy is great. People like you complain about the "moochers" who "don't pay taxes" which only means the don't have a federal income tax burden, most everyone in the country pays each of the other taxes, including the payroll tax, that many here are including in their total tax burden. Anyone who invokes the "barstool economics" argument and compares every tax they've ever paid to the one tax poor people don't pay, you aren't being honest with yourself or others. Which reminds me, I'm in Miami this week, I've paid about $35 in tolls and parking. I better tack that on to my effective rate :eyeroll Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2013 Report Share Posted January 31, 2013 But lets be real, it's not like I'm Mr. Buffett that took in $63M last year and paid $7M in taxes which is only about 17%... That figure is his Federal tax liability only. As an effective FEDERAL tax rate, it's not all that low. Most of his income comes from cap gains which are only taxed 15% at a federal level. As with most billionaires. The easy answer is let's raise cap gains tax.... However common thought is that such a move would cause most rich people to sell out investments right before the law would change, which would be devastating to the market. I would bet your average Joes 401k would get cut in half. (Atleast temporarily) So the hypocricisy is great. People like you complain about the "moochers" who "don't pay taxes" which only means the don't have a federal income tax burden, most everyone in the country pays each of the other taxes, including the payroll tax, that many here are including in their total tax burden. Anyone who invokes the "barstool economics" argument and compares every tax they've ever paid to the one tax poor people don't pay, you aren't being honest with yourself or others. Which reminds me, I'm in Miami this week, I've paid about $35 in tolls and parking. I better tack that on to my effective rate :eyeroll My biggest problem is the able bodied person that works part time making 12k a year so they qualify for all the credits, has a slew of kids, and gets a 10k federal return. While they do pay taxes like payroll tax, and sales tax they still have a net negative overall tax rate at the end of the year. On top of .gov paying for their home, their food, and their insurance. I know quite a few people that fit this exact bill. With all the oil and gas going on around us, a couple of them have had opportunities to get jobs paying 50k+ and turned them down...... Quote Link to comment Share on other sites More sharing options...
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