Taxes

[Raziaar]

So... once you guys file your Taxes(Americans really since I don't know the system for everybody else), let us know how much you'll receive back or how much you'll have to pay.

This is also a thread for RakuraiTenjin to have a hissy fit about me STILL qualifying for the Earned Income Tax Credit because I made less than 13,660. I'm so dependent on that money Rakurai... ohhh so dependent! I plan everything around my EITC!

I just got my W-2 today so I'm gonna do it tonight. Last year I got over $1,000 back but only earned like 5 grand.


EDIT: Oh shit, my EITC was only 45 dollars this year! I'm ****ed Rakurai, I'm ****ed! I got over 400 bucks last year! ROYALLY ****ED! I depended on that money all year long!




EDIT 2: Just filed my taxes. $410 this year.

 

[YROC]

Aw shit, mine (w2) should arrive in the mail shortly.

 

[ríomhaire]

Unemployed :smoking:

 

[kazsymonds]

In the UK, you typically don't file a tax return unless you are;
a) Your income from other (than employment) earnings is more than a certain amount
b) Your income is more than £100k
c) A minister (of any faith)
d) A company director
e) Self employed
f) Have foreign income
g) You've made a capital gain

There's a few more obscure examples which I won't bother posting to save needing a tl;dr, in what is already a somewhat dull post.

It sounds like you US guys have to file one even if you are a simple case or earn nothing?

Do you guys have tax deducted at source in your employments?

 

[Mr Stabby]

My taxes get taken automatically out of my pay cheque.

 

[dfc05]

I think most companies deduct tax from your paycheck. Mine used to be but now my stipend is split, and one source doesn't automatically deduct, and the other used to deduct but doesn't anymore (probably because it appears on paper that they're paying me so little). So I have to pay everything in March. It kinda sucks to have to do it all at the same time, but percentage-wise is not all that bad (<10%).

 

[Krynn72]

My taxes get taken automatically out of my pay cheque.

Thats why people get money back here in the states. Its automatically taken out of our checks, the amount of which is determined by the tax forms you fill out when hired, and if it turns out they've been taking too much out, you get money back.

I can't remember if I get a W2 for the time I was on unemployment last year. I must right? I got the one from my job, but I need to wait for the unemployment one before I can do anything.

 

[mechanicallizard]

**** taxes.

 

[Shem]

Check Article 1, Section 8, Clause 1 for the government's power to tax and the Sixteenth Amendment in the United States Constitution for information on the federal income tax.

 

[KiplingsCat]

Oh no taxes jesus christ I supervise labs in college and I got taxed even though I wasn't meant to be taxed and I have to ring some number and demand that they fix it but I don't know what to say to them and I don't know what to do and it's all very sad and confusing and I wish people would stop trying to take my money goddamn shit should be ****ing illegal, the bastards

 

[Viperidae]

You're guilty until proven innocent if you get charged with tax fraud/etc. :>

 

[morgs]

I got $1400 of my tax dollars back on my last tax return.

 

[Sulkdodds]

I don't pay no tax 'cept council tax (and VAT, obv) cos I is a student.

The day is coming, though. The day of reckoning.

 

[Mr Stabby]

Students don't have to pay council tax.

 

[Dog--]

In Canada we get T-4's. Last year I got only about a thousand bucks. Hopefully more this year.

 

[Sulkdodds]

Students don't have to pay council tax.

It's based on your household, and I live with two professionals. I suppose I don't have to contribute.

 

[RakuraiTenjin]

I owe some additional money about $45 or something if I recall correctly. Withheld about $2000 in Federal Income taxes this year total. Total taxes taken from my checks this year including state tax, medicare, and social security as well as Fed Income tax is a little under $4000. I am getting no refund because I withheld too little.

I think it's ridiculous when people get $3000+ from the IRS after doing a tax return, but only withheld $2000 throughout the year and say "yeah I paid 2000 in taxes." No- they didn't pay a single dollar, they received a free $1000 from the federal government that other people paid in taxes.


How stupid that this social security money is taken from me. I wish to opt out and enroll in private retirement investments. The government will NOT permit me to choose and manage my own retirement methods. If I was able to invest the social security money they take out I'd have MUCH MUCH MORE saved up than what social security will pay me when I'm old. Pure wealth redistribution, so wrong. Pyramid scheme.


Add to this frustration I am fighting with the IRS about my 2009 return. I deducted interest I paid upfront to lower my interest rate when I bought my house. Chase failed to report this to the IRS, only what I paid in interest over the mortgage payments. Of course because of someone else's stupid mistakes I had to dig up all the paperwork myself and send it in to resolve the issue. Still waiting for confirmation from the IRS 4 months later that I don't owe them an additional $1200. STUPIDITY.

I got $1400 of my tax dollars back on my last tax return.

You withheld $1400+ in 2011 order to make this statement, correct? I'm assuming so because you said your tax dollars.


edit: Raziaar you said you got $1000 back from the Feds after earning about $5000. That means your tax liability was $500 (I'm assuming you withheld) which means you really got $500 for free that somebody else had to pay in taxes.. Not insulting you with that, just a factoid for those who are unfamiliar with the way US taxes work.

 

[dfc05]

^Yes I was curious about what the net tax was, but assume they are paying considerably more before receiving the tax refund. If I got the amount of tax refunds listed in the thread, I would be paying nearly nothing, which perhaps is indicative of how low my taxes come out?

To clarify though, I am quite satisfied with paying my taxes. It is kinda funny though that my stipend is mostly from the federal government, so why they've got me cycling money through instead of deducting it in the first place is beyond me. Also I just realized, considering who pays me, in some sense I do have a net gain from the government. Sweet.

 

[Raziaar]

edit: Raziaar you said you got $1000 back from the Feds after earning about $5000. That means your tax liability was $500 (I'm assuming you withheld) which means you really got $500 for free that somebody else had to pay in taxes.. Not insulting you with that, just a factoid for those who are unfamiliar with the way US taxes work.

Awww yeah.

This year I paid a little over 1450 in taxes.

 

[RakuraiTenjin]

Awww yeah.

This year I paid a little over 1450 in taxes.

So you withheld ~$1905 from your check throughout the year? Seems high if you made less than 13660..

 

[Krynn72]

So you withheld ~$1905 from your check throughout the year? Seems high if you made less than 13660..

Maybe thats why he's getting $400 back.

 

[Raziaar]

So you withheld ~$1905 from your check throughout the year? Seems high if you made less than 13660..

Fed Income Tax witheld: 723.45
Soc sec. tax witheld: 548.55
Medicare tax withheld 189.39

I withheld a little over 1450 in taxes, as I said before. I *GOT* over 400 back.

 

[RakuraiTenjin]

Fed Income Tax witheld: 723.45
Soc sec. tax witheld: 548.55
Medicare tax withheld 189.39

I withheld a little over 1450 in taxes, as I said before. I *GOT* over 400 back.

you paid ~1050 in taxes as a whole then is what you should say. But welcome to the taxpayers. More people take more than they'll ever contribute and depend on it as it could never go away. We shouldn't have to pay anything out of OUR income (replace with national retail sales tax)

 

[Raziaar]

you paid ~1050 in taxes as a whole then is what you should say. But welcome to the taxpayers. More people take more than they'll ever contribute and depend on it as it could never go away. We shouldn't have to pay anything out of OUR income (replace with national retail sales tax)

No, I haven't gotten my tax refund yet, so I have paid the amount I said.

 

[RakuraiTenjin]

No, I haven't gotten my tax refund yet, so I have paid the amount I said.

That's not what it means in tax terms. It's important to say withheld. Like I said, people will say they were taxed X amount but really you just set aside that much money. You can elect what you want to withhold. You can withhold nothing if you change your paperwork with your place of employment. What your net taxes is is what you paid.

That said in your first post I never took issue with EITC as a credit towards taxes paid. My issue is with FULLY REFUNDABLE tax credits where people can TAKE an amount of money with no cap from the treasury regardless of how much they withheld. You can actually take over your lifetime hundreds of thousands without contributing anything, under the right circumstances. It's wrong. And when I say wrong it's wrong as a law. I don't blame people who take it at all. It's free money and if its there its there. The problem is as a policy it discourages gainful employment and is wrong to take from a person's income. Tax in itself is not wrong, income tax is.

 

[Raziaar]

That's not what it means in tax terms. It's important to say withheld. Like I said, people will say they were taxed X amount but really you just set aside that much money. You can elect what you want to withhold. You can withhold nothing if you change your paperwork with your place of employment. What your net taxes is is what you paid.

That said in your first post I never took issue with EITC as a credit towards taxes paid. My issue is with FULLY REFUNDABLE tax credits where people can TAKE an amount of money with no cap from the treasury regardless of how much they withheld. You can actually take over your lifetime hundreds of thousands without contributing anything, under the right circumstances. It's wrong. And when I say wrong it's wrong as a law. I don't blame people who take it at all. It's free money and if its there its there. The problem is as a policy it discourages gainful employment and is wrong to take from a person's income. Tax in itself is not wrong, income tax is.

The entire issue you held with the EITC is that it makes people slaves. That they are dependent entirely on that EITC and don't know how to plan and manage their finances otherwise. That's why I made fun of you in my OP.

 

[RakuraiTenjin]

The entire issue you held with the EITC is that it makes people slaves. That they are dependent entirely on that EITC and don't know how to plan and manage their finances otherwise. That's why I made fun of you in my OP.

Yeah EITC and other fully refundable tax credits can make you into a slave to it. EITC should be a tax credit but not fully refundable. I'm all for tax credits and such getting you down to 0. Getting you to -0 liability fully refundable is wrong. More people take than contribute. The top 20% of earners pay 86% of income taxes. And that's not billionaire stockbrokers because they pay capital gains tax not INCOME tax. Income tax is people on salary/hourly wage.

 

[Maestro]

Warren Buffett's tax rates are lower than his secretary's.

 

[RakuraiTenjin]

Warren Buffett's tax rates are lower than his secretary's.

warren buffett pays capital gains tax not income tax. he doesnt have an income or its minimal.

 

[Raziaar]

Just got my $410.00 deposited in my bank account today. Sweet.

 

[unozero]

did mine last night I'm getting $900

 

[Krynn72]

Getting back ~$920. **** yeah, I'm going to buy so many tiny Nazis with this.

 

[Raziaar]

Getting back ~$920. **** yeah, I'm going to buy so many tiny Nazis with this.

And they're all going to suffer horribly from attrition!

 

[Yorick]

Man, becoming an adult sucks. I'm only getting $105 back from Massachusetts and I owe $114 to Uncle Sam. This is the first year I didn't get at least $500 back.

 

[Dog--]

My very first year I got like $35, year after I got $1025, hopefully it's around that this year

 

[Dynasty]

In the UK, you typically don't file a tax return unless you are;
a) Your income from other (than employment) earnings is more than a certain amount
b) Your income is more than £100k
c) A minister (of any faith)
d) A company director
e) Self employed
f) Have foreign income
g) You've made a capital gain

There's a few more obscure examples which I won't bother posting to save needing a tl;dr, in what is already a somewhat dull post.

It sounds like you US guys have to file one even if you are a simple case or earn nothing?

Do you guys have tax deducted at source in your employments?

I have to admit, having just under 2 years in the work environment as experience, when I was listening to the radio about 2 weeks ago, and heard the advert regarding the tax return being due by, what is it, January 20th or something, and if you dont fill out your return form, even if you owe nothing, you get a 100 fine or something? I went into serious panic mode for like an hour. Calmed down and looked it up and sighed a huge relief when I read it was for like truck drivers or self employed people etc.

But I'm confused. Isnt there a period, I'm guessing April, when people owe tax or get tax paid back to them or something in the UK? See lots of FB updates cheering on how much people got paid back to them or how much they hate the government as they owe tax.

 

[kazsymonds]

...But I'm confused. Isnt there a period, I'm guessing April, when people owe tax or get tax paid back to them or something in the UK? See lots of FB updates cheering on how much people got paid back to them or how much they hate the government as they owe tax...

The tax year runs from 6 April to 5 April. Tax returns are due on 31 January for online submissions, with paper being due in October.
The deadline is 31 January, so for the year 6 April 2010 - 5 April 2011, you have to submit your return by 31 January 2012.

The worst part about our system is that you not only have to settle the tax due (or reclaim any overpaid amounts), but you have to pay a payment on account for the next tax return. You also have to make a payment on account in July each year. I won't go in to more detail as it's pretty mundane, but you get the idea.