Tax question

TARDCORE · 01-19-2010, 03:26 PM

Quote:

Originally Posted by dad

Do not go to H&R Block!

We paid $200.00 for them to do our taxes(2005). The IRS kicked it back, with corrections. H&R Block, made several errors! We didn't owe that much more, but it was like $200.00 for poor incorrect service! I used Turbo Tax since then, no problems or errors!
This **** hole state, has change the tax rates, we also will probably have to pay!

Did you use Turbo Tax?

Yes sir I did and I used it last year as well. I am just really confused how taxes work. The way I see it is I am punished for being single. I am so confused on this. I don't like the females who work for the agency I do because they are... manly. lol but seriously my coworkers who are married to fellow agents have 2 incomes which are both really good. They get huge returns and with dual incomes, they bank! I am single and get raped on the rent for my condo, raped on taxes, and have 1 income. What did you do to not owe before you got married? Honestly even if I broke even for next Id be happy. Any advice for next year? Can I write off the tax I paid for my Z?

dad · 01-19-2010, 03:41 PM

Quote:

Originally Posted by TARDCORE

Yes sir I did and I used it last year as well. I am just really confused how taxes work. The way I see it is I am punished for being single. I am so confused on this. I don't like the females who work for the agency I do because they are... manly. lol but seriously my coworkers who are married to fellow agents have 2 incomes which are both really good. They get huge returns and with dual incomes, they bank! I am single and get raped on the rent for my condo, raped on taxes, and have 1 income. What did you do to not owe before you got married? Honestly even if I broke even for next Id be happy. Any advice for next year? Can I write off the tax I paid for my Z?

I doubt if you made any errors! It guides you along very well!

But re check just to be sure!

ChrisSlicks · 01-19-2010, 04:36 PM

Quote:

Originally Posted by TARDCORE

Yes sir I did and I used it last year as well. I am just really confused how taxes work. The way I see it is I am punished for being single. I am so confused on this. I don't like the females who work for the agency I do because they are... manly. lol but seriously my coworkers who are married to fellow agents have 2 incomes which are both really good. They get huge returns and with dual incomes, they bank! I am single and get raped on the rent for my condo, raped on taxes, and have 1 income. What did you do to not owe before you got married? Honestly even if I broke even for next Id be happy. Any advice for next year? Can I write off the tax I paid for my Z?

Claim 00 if you have no dependents and no mortgage. If you claim 01 and have no state deductions you will get screw-ed over.

Being married doesn't get you any tax breaks unless you start reproducing, and believe me that will cost you a whole lot more in the long run. Most of the deductions for married filing jointly are simply double what the single person deductions are. The main benefit is if your spouse is making less money then you effectively are "averaging out" your 2 incomes for tax purposes. Besides tax the only other financial benefit of being married is that you are only making one rent/mortgage payment.

In the long run being married costs you a lot more than being single, first you have to pay for the wedding, the honeymoon, and 7 years later there is a 50% chance that you have to pay for the divorce and several years of alimony.

So the moral of that little story is don't do it, unless you are 100% sure that it is Mrs Right and you are willing to work on it staying that way.

Oh, and yes, you can deduct any sales (and excise) taxes that you payed on your car. The program should have explicitly asked you that question unless you filed 1040EZ.

TARDCORE · 01-19-2010, 04:46 PM

I think I am going to switch back to claiming 00 like you said. The thing that bugs me is that when I got my GS-09 grade the difference between 00 and 01 for state was only about $14 each check, which is wierd that it would effect me like that. Federal however was much more. I still dont understand though. I paid over twice as much money as I did last year into both fedral and state and I made a little under twice what i made last year. Oh well, lessons learned. A) Dont get married apparently. B) this is probably going to happen every year so I need to expect it and get money aside just for this. Fortunately with all the money I saved for the Z that I didn't spend will cover these taxes and my FI CBE and LTH!! well thanks for the responses though guys I appreciate it.

ChrisSlicks · 01-19-2010, 05:28 PM

Welcome to the higher tax bracket, the more you earn the more you pay percentage wise.

Lug · 01-19-2010, 06:35 PM

Quote:

Originally Posted by ChrisSlicks

Welcome to the higher tax bracket, the more you earn the more you pay percentage wise.

It helps us all be more equal.

semtex · 01-20-2010, 12:38 PM

Quote:

Originally Posted by ChrisSlicks

Claim 00 if you have no dependents and no mortgage. If you claim 01 and have no state deductions you will get screw-ed over.

Being married doesn't get you any tax breaks unless you start reproducing, and believe me that will cost you a whole lot more in the long run. Most of the deductions for married filing jointly are simply double what the single person deductions are. The main benefit is if your spouse is making less money then you effectively are "averaging out" your 2 incomes for tax purposes. Besides tax the only other financial benefit of being married is that you are only making one rent/mortgage payment.

In the long run being married costs you a lot more than being single, first you have to pay for the wedding, the honeymoon, and 7 years later there is a 50% chance that you have to pay for the divorce and several years of alimony.

So the moral of that little story is don't do it, unless you are 100% sure that it is Mrs Right and you are willing to work on it staying that way.

Oh, and yes, you can deduct any sales (and excise) taxes that you payed on your car. The program should have explicitly asked you that question unless you filed 1040EZ.

That's why they call it the 'marriage penalty'.

01-19-2010, 04:46 PM	#4 (permalink)
TARDCORE Enthusiast Member Join Date: Jul 2009 Location: San Diego Posts: 410 Drives: 2010 Solid Red 370Z Rep Power: 17	I think I am going to switch back to claiming 00 like you said. The thing that bugs me is that when I got my GS-09 grade the difference between 00 and 01 for state was only about $14 each check, which is wierd that it would effect me like that. Federal however was much more. I still dont understand though. I paid over twice as much money as I did last year into both fedral and state and I made a little under twice what i made last year. Oh well, lessons learned. A) Dont get married apparently. B) this is probably going to happen every year so I need to expect it and get money aside just for this. Fortunately with all the money I saved for the Z that I didn't spend will cover these taxes and my FI CBE and LTH!! well thanks for the responses though guys I appreciate it. __________________ XBL:EVENTYDE

01-19-2010, 05:28 PM	#5 (permalink)
ChrisSlicks A True Z Fanatic Join Date: Mar 2009 Location: North East Posts: 6,203 Drives: 09 370Z Sport M6 Rep Power: 654	Welcome to the higher tax bracket, the more you earn the more you pay percentage wise.