You can't make $400k and be an idiot, even working for the government. But those skills aren't that rare, although they are harder to find in rural areas.
2018 Taxes
- Thread starter Cyclone06
- Start date
You can't make $400k and be an idiot, even working for the government. But those skills aren't that rare, although they are harder to find in rural areas.
At some point there is no point. How about 50%, 60%, 70%? At some point its better to just go sit on a beach.
Simple question. Say you are making $10 million a year and there was a 70% tax bracket for income over $10 million. Your boss offers you a 10% raise. Would you take it?
Taxes PAY FOR...government. At least that is what I have been told. Kind of like a bad habit I guess,
I paid my taxes over a year ago. Chumps.
I get a 5 figure refund every year and I dont think Im a moron. We have a financial plan and it works for us. Sure I could take that extra $900 a month and put it in a money market and make 2% instead of letting the govt borrow it. Everyones situation/plans/dreams are different so be careful painting with a broad brush.
Did my taxes last night:
Lost the following:
$12,150 in exemptions
$5,130 in state and local taxes (since it is capped at $10,000 and we had $15,130)
Went from the 25% bracket in 2017 to the 24% bracket in 2018.
Conclusion: My loss of deductions outweighed the 1% lower bracket I was in. I would have prefered to keep my deductions and stay in the 25% bracket.
Regarding the Sec 199A, this should be calculated on a individual business level and not on an aggregate business level. ugh.
Lost the following:
$12,150 in exemptions
$5,130 in state and local taxes (since it is capped at $10,000 and we had $15,130)
Went from the 25% bracket in 2017 to the 24% bracket in 2018.
Conclusion: My loss of deductions outweighed the 1% lower bracket I was in. I would have prefered to keep my deductions and stay in the 25% bracket.
Regarding the Sec 199A, this should be calculated on a individual business level and not on an aggregate business level. ugh.
[QUOTE="DreamyCy, post: 6521448, member: 18833"
People who get consistently large refunds are just morons who don’t know how to properly set up their withholdings.[/QUOTE]
I'm far from a moron and I prefer a large refund. See one of my prior posts.
People who get consistently large refunds are just morons who don’t know how to properly set up their withholdings.[/QUOTE]
I'm far from a moron and I prefer a large refund. See one of my prior posts.
I’d probably not put it in a money market. I’d probably spend it. So it’s better that the government has it than me.
Trying to get caught-up - if you've finished your taxes have you shared whether your effective tax rate changed year over year?
Don't need the money so badly, they like the ritual of filing and getting the check, they've had ID theft or banking problems in the past, it has no impact on their lives... same reason people wear stretchy jeans, carry paper money, or listen to bad music. Personal choices?
Question - are people really judging tax policy by the size of their refunds and NOT by the percentage of income paid in taxes?
Doesn't sound right. You know your gross income this year and last. You know total fed income taxes paid this year and last. Simple math isn't it?
Years ago when I was CPA-ing, we had some doctors as clients. They came in 2 stripes - guys who became doctors to make a lot of money so they could make MORE money (savvy financially - new services, real estate, etc...) and those who were doctors to save lives and had little clue or interest in their finances.
I'm a republican and used to be CPA. I don't feel your statement has any basis in fact.
This is getting way to close to cave territory - toodles!
