- Joined
- Dec 15, 2012
- Messages
- 19,737
- Reaction score
- 12,275
- Location
- Lawn Guyland
- Gender
- Male
- Political Leaning
- Libertarian
Unknown. Ask again on Oct 15th.
Same here.
Unknown. Ask again on Oct 15th.
As it is I feel that I'm getting more than my money's worth in peace of mind.
I call people who do this 'awesome' or 'dedicated'. It's very impressive to keep up with all of that mess. I have personally never been able to itemize because the standard deduction is around $12,000. My mortgage balance is only $19,260.33. The biggest deduction that I could get would be $1,155.62. I only donate around 10% of my income to charitable causes but sometimes I give that to individuals. That is less than $4,000. Even if I spent all $33,500 of my income (which I don't) the sales tax would only be $2,345. I am a long ways from reaching $12,000. I don't think it pays to itemize unless you have a really huge mortgage.
What am I doing wrong that I need to change?
Here is my personal situation:
Income from all sources = $33,016.66
Federal Income tax, Social Security taxes and Medicare taxes = $3,018.66
Federal Refund = $5,116.00
North Carolina Income tax = $1,133.16
North Carolina refund = $456.00
My federal taxes were at an effective rate of -6.35%
My state taxes were at an effective rate of 2.05%
My overall effective tax rate was -4.30%
I voted for the 6th and the 8th option.
so you are part of Romney's 47% who need to get their life in order
Since savings in a form that is fast to withdrawal are rather low interest rates, it isn't much when looking at it in that aspect. However, when inflation is high, your money lent to the government has lost a rather high degree of spending power.Yes. I had an accounting teacher that tried to tell us that it was dumb to get a tax refund. I just smiled and pretended that she was a genius. After all, her logic was sound but low interest rates really rips that logic to shreds.
$1,000 for 12 months = $7.50
$1,000 for 11 months = $6.88
$1,000 for 10 months = $6.26
$1,000 for 9 months = $5.63
$1,000 for 8 months = $5.00
$1,000 for 7 months = $4.38
$1,000 for 6 months = $3.75
$1,000 for 5 months = $3.13
$1,000 for 4 months = $2.50
$1,000 for 3 months = $1.88
$1,000 for 2 months = $1.25
$1,000 for 1 month = $0.63
It probably would have been around $48.79 but that is a reasonable penalty to pay for a forced savings account in my opinion. Someone with more money and/or more discipline than me might disagree. I can see the logic either way but it is dependent upon the past spending habits of the individual.
For most broke or undisciplined Americans it is a wise thing to use the federal government as a savings account. Most refunds aren't $12,000 so the argument becomes weaker if the person is getting a $6,000 refund.
However, when inflation is high, your money lent to the government has lost a rather high degree of spending power.
i also wrote them a check for $53. I wrote state a check for $11.
I have a pretty healthy mortgage as well as a home based office. Not sure how much difference this will make but might as well give it a shot.
I itemize, but never thought of adding sales tax. I will be talking to my CPA about this. I keep every receipt I have for each year. Thanks for the tip.
Here is my personal situation:
Income from all sources = $33,016.66
Federal Income tax, Social Security taxes and Medicare taxes = $3,018.66
Federal Refund = $5,116.00
North Carolina Income tax = $1,133.16
North Carolina refund = $456.00
My federal taxes were at an effective rate of -6.35%
My state taxes were at an effective rate of 2.05%
My overall effective tax rate was -4.30%
I voted for the 6th and the 8th option.
Do you know anybody that has claimed a home based office? It can be a huge headache if you close the business or move. It could also cost you a lot of tax-free money if you ever sold your house.
Talk to others before claiming a home based office. Consider the short-term benefits versus the long-term drawbacks.
I'm pretty sure they did away with it this year.