Posted on 02/23/2010 10:56:56 PM PST by TheRevolution1776
So, my wife and I decided to file our taxes. To my surprise and trust me it was a surprise we ended up owing money. What gets under my skin was the fact that we ended up owing because our employers either took too little or none at all during the last year(Federal that is). I think it was a ploy to save money on the employers behalf which left us with the bill. What I wanted to say to all Freepers that it might be in your best interest to check your W-4's for this year, since last year is most likely a lost cause, and make sure they are withholding at least 10%. My wife and I are no where near the "rich" or even middle class income bracket, no kids, in school, and also underneath a state tax bracket as well, yet we owed. Many of us are like this and it is beyond infuriating to me, hopefully some of you as well, that doing it the right way is getting harder and harder.
I've always said we Americans are taxed beyond belief and I still believe that today. With talks of nailing people under the 250,000 mark now to fund health care, the talks of performance tax for radio, sugar tax and even the talk of tanning tax, I say...............
Didn't we fight a war for less ?
Personally, I have made up my mind and will be getting further involved, running for a local or state office or at least getting a chance to speak to Americans. Sometimes all it takes is a pen and the will to wield it. I don't have to win an election, all I would want is the chance to encourage more to seek office and like that we will control this beast. We just can't allow them to run it anymore, it is up to us and only us.
God bless.
Good response (political action). Don’t be a victim.
Generally, you want to owe some money when you pay taxes. That way, the government gets what they were owed with no interest-free loan to them.
This is what I always tell FReepers. The Founders fought for less.
That’s what bothers me. They get what is owed. Why do any of us owe anything. To think if my wife and I decided to have a kid we would have gotten back 3,000 ? Now think about those on welfare popping out kids. How about we tax only those on welfare since most don’t work. Watch how quickly people find jobs. My personal message to all socialize this and that people “there is no such thing as free, if your mom gave you a car, she had to pay for it.” It is time to teach some of these “Americans” a lesson in honor and responsibility. This wasn’t really aimed at you just what I was thinking when I read your post.
It’s quite alrght. I used “owed” loosely.
This probably is not your employers decision. 0bama had the IRS change the withholding tables for last year. It was to put more money in peoples pockets to “stimulate” the economy. I spent a lot of time telling people I know to expect this. But most did not listen until it was too late. You might want to consider withholding even more than 10% now because the reductions in rates President Bush established expire. Not only will there be withholding shock, there will also be tax rate increases (timed to be felt after the 2010 election). In other words, if you were shocked when you paid this years taxes, just wait another shock is coming.
Highlights
Highlights of Report Number: 2010-41-002 to the Internal Revenue Service Commissioners for the Wage and Investment Division and Small Business/Self-Employed Division.
IMPACT ON TAXPAYERS
The Making Work Pay Credit is to be advanced to taxpayers through their wages by a decrease in Federal income tax withholding. This creates the vulnerability that some taxpayers may have their taxes underwithheld at the end of Tax Years 2009 and 2010. If taxpayers are advanced more of the Making Work Pay Credit than they are entitled to, they may ultimately owe taxes when filing their Tax Years 2009 and 2010 tax returns and may be assessed estimated tax penalties.
WHY TIGTA DID THE AUDIT
The Making Work Pay Credit, a provision of the American Recovery and Reinvestment Act of 2009, will apply to most taxpayers with earned income. The credit will be in effect for Tax Years 2009 and 2010. The Making Work Pay Credit was implemented using new income tax withholding tables issued by the Internal Revenue Service (IRS). Application of the tables could negatively affect a significant number of taxpayers. The overall objective of this review was to assess IRS efforts to implement the Making Work Pay Credit and to evaluate its impact on taxpayers.
WHAT TIGTA FOUND
Based on an analysis of Tax Year 2007 tax return data, TIGTA estimates that more than 15.4 million taxpayers could unexpectedly owe taxes for Tax Year 2009 as a result of the Making Work Pay Credit. TIGTA’s analysis of the new withholding tables and the amount of the credit that taxpayers are to receive identified taxpayers who would be advanced more of the credit than they were entitled to receive. The changes to the withholding tables do not take the following situations into consideration:
· Dependents who receive wages.
· Single taxpayers with more than one job.
· Joint filers where one or both spouses have more than one job or both spouses work.
· Individuals who file a return with an Individual Taxpayer Identification Number.
· Taxpayers who receive pension payments.
· Social Security recipients who receive wages.
More than 1.2 million taxpayers included in these groups may be subject to: 1) paying back some or all of the Making Work Pay Credit and 2) being assessed the estimated tax penalty or an increased estimated tax penalty as a direct result of the Making Work Pay Credit.
My husband got the $250 disabled veteran stimulus check last year. Schedule M must be filed to declare this money. The IRS deducted exactly $250 from our small refund this year. What crooks! I pity the poor elderly that must return their $250. The gov taketh away!
Actually, they didn’t “change the tax rate tables,” just changed the withholding amount for everybody so they got more money in their checks. If they had changed the tables to reflect the withholding, the right amount of tax would have been taken out.
Check out the second sentence that I wrote. The tax rate change came when they allowed the Bush tax cuts to die without renewing them. That is this year. And the tax rate change is an increase. So everyone will actually owe more taxes. Last year, 2009, was the withholding tables funny business.
I apologize if I was not clear enough for you.
How does withholding less save the employer money?
If you get money back, that means you gave them even more than your exorbitant tax bill to hold all year.
One of these days I’m going to figure out how to claim my *entire* paycheck, and then grudgingly cut them a check at the end of the year.
Then I’ll get as many people as I can to do the same.
Currently about 46-48% of the people in this country pay NO income tax. This is a real problem because these people never have to be concerned when a tax increase is proposed or is implemented since they won’t pay anyway. When tax CUTS are proposed they howl because they get nothing out of it (you can’t get a tax cut if you don’t pay to begin with)
The solution is to make sure EVERY person who either holds a job OR receives government assistance in any form pays at least something in taxes. Even if it were as little as 1% or half that it would force these people to become engaged and enraged each time the government tried to raise taxes, since it would come out of ther pockets as well as everyone else’s.
The opposite would happen when tax cuts were proposed and instead of being against them (they don’t get them if they aren’t paying as it is now), they would be in favor of them and make their voices heard.
I have read in “Liberty and Tyranny” that the Earned Income Tax Credit was one of the biggest mistakes in the tax system, since it created a class of people who paid no taxes and got money back.
Gotta find someone with lots of money, or the ability to collect lots. It pretty expensive to run for office. Especially if you have to work for a living also.
The new plan will provide $11 billion to expand Community Health Centers that will certainly do abortions. Apparently Obama and his Party believe Americans especially Pro Lifers are fools.——————————That’s exactly why my spouse and I changed our withholding. We will not give Obama or Geithner money to play with all year and hope we get it back at the end of the year. I trust me, more than I trust them. So If I owe a few dollars at the end of the year, I will file an extension to pay it, further starving the beast....Until there’s a new President...
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