I'm rich

2-14-02 | farmall

[farmall]

My wife and I are both public school teachers. We both teach additional day and after school classes. We both teach summer school and I have another job as a security guard. Combined total we earned @ $119,000 in 2001. IRS has already taken @ $19,000. It looks like they want another $ 3-5,000 on 4-15-02.

[higgmeister]

Be angry with the IRS.  Without the Federal
Government Tax money your Schools would
your own.

[vidbizz]

An even better idea would be for people to actually write a monthly check to the IRS based on what their taxes were the previous year. If people had to write a check like their monthly mortgage, they would REALLY know how much actually goes to the IRS....only then will the revolt happen!

[Inkie]

One or two people on this thread seem to think that, if you make more than them, then you deserve to have it taken away. Would they do that to their next door neighbor, say, if the neighbor had two nice cars and they had one crapped out one? Would they go over and say, "You have more than me; give me some of what you have." No, they wouldn't. So why is it okay to do that via the tax system? Furthermore, as to the original post on this thread, if you tally up all the hours that these two teachers work, they are probably making less than minimum wage.

[rrr51]

So is asking for pity They are not asking for pity. They are complaining about having their hard-earned money stolen from them.

[Skooz]

Exactly. That's why congress will never let it happen.

[SamAdams76]

Boo f'ing Hoo.. my family exists on 20,000 a year, with no help from the government (we don't believe in it), and we do fine. Go peddle your sob story somewhere else, We'd live like kings on your salary, even with the 25 grand you pay in taxes.

Where do you live? In a Mississippi backwater?

Up in the Boston area, you are lucky if $20,000 a year will even pay the rent. Plan on spending $1500 to $2000 a month in an apartment up here. If you want to buy a house, the median price is somewhere around $260,000 for a typical 3-bedroom starter. You try coming up here and living like a king.

[Skooz]

They are not asking for pity. They are complaining about having their hard-earned money stolen from them.

Welcome, rrr51. I like you already.

[technochick99]

If you want to REALLY get mad, figure out all the other taxes you pay - gasoline, sales, etc. My son-in-law did here while back. It was SEVENTY PERCENT by the time all "hidden" taxes were factored in.

I've often wondered about that.... I figured if I tracked it I would go beserk at the end of the year.

[Sloth]

See #141

[SamAdams76]

Do you mean you pay no income taxes, or come April 15 you don't have to pay anymore? I have a rather large mortgage and max out 401K, but that's not gonna get me close to having no taxable income.

What I mean is when tax time comes, I don't owe any money. Of course, I pay taxes. A good amount at that. I just hate having to write a check for even more on April 15 so I try to max out whatever deductions Uncle Sam deigns to make available to me. I also try to make it so I don't get a big refund. That's just giving an interest-free loan to the government. So I'll adjust my payroll deductions accordingly. For example, in 1999 I claimed single with no dependents and I ended up with a $5400 refund. I was pissed. So for the next year, I claimed my wife and one child. My refund dropped to $2200 so this year, I claimed two children. I should know by this time next month if I achieve my goal of breaking even.

[VRWC_minion]

This looks like a good thread for me to toss this out - does the government take (steal) a percentage of one's life insurance and how much? Is there any way to get around it?

Life insurance is not taxed when paid as death benefit. However if you accumulate a cash value and cash it in the value in excess of the premiums paid is taxed.

also, does anyone know about how to go about starting offshore accounts? Can these be hidden? Legally? I know zip about this and would appreciate any information.

You are free to open an account anywhere you like. The income is reported on your personal return just like any other income. In addition, sch b requests you report the existance of foreign accounts. Some folks attempt to put their assets into trusts with complex arrangements so that the ownership cannot be traced back to them. Even if you accomplish the set up of an offshore account that accumulates income not subject to income taxes you cannot touch it. When you bring the cash home it then becomes taxable income. As a tax avoidance device, its simpler and safer to put your money into your 401k.

The only compelling reason to use offshore accounts (besides having business reasons) is to attempt to protect your assets from future creditors. This too is complex and often not worth the trouble.

[sonserae]

Bump - You're RICH too!!

[VRWC_minion]

Be angry with the IRS

The IRS is not evil, (Well maybe a few are)...Congress is the devil, they pass the laws.

[Myrddin]

Change your witholding to Single 0/0. My wife and I had to do that to deal with the confiscatory rates in California. I just finished my taxes last night. Moving to Idaho is such a relief. The returns were slightly more complicated this year with part year residency in Idaho and California. The feds took $70,000 from me in 2000. CA took $17,500. It didn't help that my wife's employer did not withold enough. The witholding from my income would have resulted in a $10,000 refund from the feds. Once my wife's W2 was added, we owed the feds $2500. Home mortgage deductions and property taxes shifted the balance back to a $2500 refund from the feds...all of which Red Davis received in additional state income tax.

You need some competent advice on handling your witholding. I instructed my wife to put the maximum amount of deferred retirement contributions that were allowed to reduce her taxable income. She also carefully followed the instructions on the W4 to get the witholding increased on her income to compensate for the two earner disparity. Her gross income dropped from $47K to $16k in the relocation from San Diego to Pocatello. That also helped reduce the consequences of insufficient witholding on the second earner.

[Mustang]

According to Rep.Dick Gephardt,(DemRat),...you're just another winner in life's lottery.

Take your retirement buck$...and shut-up!

I served 26 years in the military, 2 tours in Nam, and will never whine.

Those of us who have dedicated the years and fears of future catastrophe in order to prevent such insanity are the true Patriots.

[wardaddy]

Where do you live? In a Mississippi backwater?

Geez Sam....I thought it was Mississippi Back Baywater??

No need to South Bash....this is a class struggle thread don't you know?

[PatrioticAmerican]

ONLY $3-5K!! You must not be paying your fair share. There is a little illegal Mexican girl with a new born by a gangbanger father she doesn't know who hasn't paid anything and needs your money. You had better give it or else your country will stick a gun in your face and take your home from you.

[PatrioticAmerican]

Yeah, Ken, I feed my family on jealousy. It tastes real good in the open air from not having a home because I am a fat lazy socialist looking for someone else to make money for me.

[Henk]

Since we don't own our own business, we can't reduce our taxes with fake expenses like so many small business owners do.

What the heck is that supposed to mean? You can only expense against income you make from the buisness to begin with.

[higgmeister]

"If nothing else, you certainly have a unique perspective on "living within your means."

This man tells us that he and his wife work
multiple jobs only to find out that he will
have pay the IRS up to $5000.00 more and
as others have pointed out possible penalties
for under estimating tax and your comment
is "live within your means!"

My perspective is very sane and I hope it is
not to unique yet fear that it may be.   The
Federal Government is becoming the beast
To many appear willing to crawl toward the
belly.  We must make this creature smaller
again and it won't be done by those saying,
"live within your means!" rather than,
"Abolish the IRS!"