Understanding Taxes...NSFW

[homerandpooh]

Explain this to me. My wife and I have no kids, we both claim married 0 all year and yet we have to pay the IRS more. Something doesn't make any fucking sense.

Payment for rant: (I'll need a receipt for this for next year's taxes).

[AldoNova]

make less, pay less or get some deductions and a real good cpa

[ElSeed]

did you both make more?

I am just about to dive into my c-corp taxes and then personal. I wish they could just send a bill once a month like the rest of the blood suckers.

[spunky]

quit your job, suck the gubbermint tit all year long...

[TheBullDog]

Assuming you have no capitol gains, or sold stock, or borrowed from a 401k, etc. something is fishy. Meaning if your only income was your paychecks, you should not owe anything after claiming 0 dependents.

However if you have income outside of paychecks that wasn't taxed along they way, then you might/could/should owe.

[BillMelayter]

minimum alternative tax?

[spunky]

buy yogurt stock ...

[Indianrockguy]

you forgot to divide by pi.

[Flew]

That's an easy one. The tax tables assume your job is the only income in the household. So since you are married, neither one of you have any witholding for the standard deduction for a couple filing jointly. Consequently, when you add your incomes together only one standard deduction is subtracted from the total, so you will have quite a bit more income to pay taxes on then what the withholding tables figured. This should be negated in part by your personal deductions, but probably not completely.

A good way to knock off a good chunk of that tax bill is to fund a standard IRA (If you haven't done so already, ot\r funded a Roth IRA). Money put in a standard IRA is deducted from you gross income which means it won't be taxted in most cases. So putting $6000 in a standard IRA may save you close to $2000 on your tax bill.

[IBHUNG]

thank the libs

[Geist]

You don't OWE anything. Send them a bill in fact. Fag tax.

[SpLiTHunter]

A new bill was passed last year in which you take home more pay each pay check.

[SpLiTHunter]

Making Work Pay tax credit read about it as this might be your problem. Compare this years federal withholding to last year. If this isn't your problem then maybe you can give a little more info so that you can be helped better.

[squirt]

Example #8,943,570 for why we need tax reform a helluva lot quicker than health care reform.

[ElSeed]

I just need someone to teleport here and do these for me.

[Geist]

Example #8,943,570 for why we need tax reform a helluva lot quicker than health care reform.

No, we need pigeons. Soothsayers in our time of need.

[IBHUNG]

A new bill was passed last year in which you take home more pay each pay check.

and then give it back at the end of the year.

Thats not a tax REDUCTION

[SpLiTHunter]

and then give it back at the end of the year.

Thats not a tax REDUCTION

I may be misunderstanding his question. I'm reading it as he has to pay the IRS more money this year than he has ever had to pay them. That would indicate that he isn't having enough money deducted from each pay check. Since he hasn't changed his deductions or filing status he is paying more because of the new bill. That is how I'm reading it, which might be the wrong way.

The only other explanation is that either or both of you got a raise and are now in the next tax bracket.

[RICRUDE]

Example #8,943,570 for why we need tax reform a helluva lot quicker than health care reform.

Agreed...............

[ElSeed]

I just sent the numbers to the accountant. not that anyone cares but it wasn't all that hard