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Reality Check for CR and myself.


SpaceGhost
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Nope... This is actually fairly common for dual income households where both are equivalent ("higher") earners... Tax rates are based on single incomes... When you have two similar incomes, the combined income is taxed at a lower rate individually than it would be for the same total income of a single earner at that rate... So that difference is owed to Uncle Sam. The "marriage penalty"...

 

IE: if my wife and I pay 30% in taxes on our individual pay checks... If those paychecks were from a single earner, it would have been 35%... So we owe that 5% difference because of the way tax laws are set up.

 

So you make over 130k joint? At that point with just one child-you basically get nothing back. I am not sure how the numebrs work with multiple kids. I dont think it matters if its made solo or not if you file jointly. I am going to have to deal with juggling that this year.

 

Agree. Wife and I when she was working (she was self employed) were pretty close income levels and with Zero deductions on my end and her paying quarterly based on previous year and a little extra account for her earning more, we often still owed. Really all depends on what you make as a household. I agree with Kirk's statement earlier, that people's opinions on household income vary greatly. What one person considers doing well may be peanuts to others.

 

Being Self employed really gives you an edge in the tax department. If your creative, unless you have a corp. that makes money hand over fist, you can write off almost everything any given year.

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So you make over 130k joint? At that point with just one child-you basically get nothing back. I am not sure how the numebrs work with multiple kids. I dont think it matters if its made solo or not if you file jointly. I am going to have to deal with juggling that this year.

 

Yes, we are over that, and in the margin between tax rates that we get shafted... The only thing you can do is figure your estimated taxes and have them take additional out per paycheck... Or save and pay it at tax season.

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I agree 100%-but how can we ask form program change not being an elected official? They do what they want basically unchecked by the people that elected them?

 

That's a separate problem. To many of these elected officials are NOT doing what they were voted in and sent to do. People need to remember this and start making changes come election time.

 

Agree completely... my combined household income puts me just under being in the "top 10%" (amazing how low that income is IMO)... I am not rich, by any means.... I claim zero, have no special sources of income, etc... I claim zero, paying the max amount in taxes (about 30% per paycheck), and I get to then pay an extra $3,000-4,000 as a bill every spring...

 

yea I'm the rich evil guy that needs to pay my share, LOL

 

What amount includes the top-10% these days? I've seen many different stats with many different figures. Do we need a thread breaking down income and what people consider rich or middle class?..lol.

 

You PAID INTO unemployment. I consider that far more admireable than welfare.

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+1

 

Nope... This is actually fairly common for dual income households where both are equivalent ("higher") earners... Tax rates are based on single incomes... When you have two similar incomes, the combined income is taxed at a lower rate individually than it would be for the same total income of a single earner at that rate... So that difference is owed to Uncle Sam. The "marriage penalty"...

 

IE: if my wife and I pay 30% in taxes on our individual pay checks... If those paychecks were from a single earner, it would have been 35%... So we owe that 5% difference because of the way tax laws are set up.

 

Every time I think about it... :fuuuu:

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Yes, we are over that, and in the margin between tax rates that we get shafted... The only thing you can do is figure your estimated taxes and have them take additional out per paycheck... Or save and pay it at tax season.

 

You could also file married but at the single rate. I mean you're pretty much doing that anyhow but it's easier for my wife and I to just do it that way and not worry about it.

 

sucks yes, but whatever.

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