madville
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Sat Oct-29-11 02:27 AM
Original message |
Watch your income and how you pay taxes, less can be more |
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Just wanted to share some experiences over the last 5 years with taxes and income. I was single during the 2006-2009 tax years, I made about $48,000 gross per year and was technically working in Georgia so I had to pay their state income tax as well. For 2010, I was now married and made about $36,000 gross in Florida.
It broke down like this:
2009 and a few previous years - single in GA $48,000 gross income $5,000 paid in federal taxes $2,000 paid in GA state taxes $3,200 paid to social security and medicare Net take-home pay: $37,000
2010 married with two dependants to claim $36,000 gross income - no income for the wife, takes care of the kids No state income tax in Florida Had $3,000 withheld but received a refund for $7,800 = net +$4,800 with credits $2,400 to social security and medicare Net take-home pay: $38,400
I actually took home more money making 25% less and qualifying for the EIC, living and working right across the state line, and having more credits. Just throwing this out there so others might evaluate what they are doing and where they live, it could be working for you or against you.
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dkf
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Sat Oct-29-11 02:42 AM
Response to Original message |
1. It's not the tax rates, it's all the other stuff that makes the difference. |
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Joe S had a good point. You could raise the top tax bracket to 70% and Warren Buffet will still pay an effective tax rate of 18% because he knows how to make his income capital gains. The smart people know how to create the deductions and loopholes. You would raise more taxes from Warren Buffet by changing loopholes than by doubling the top tax rate.
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Lasher
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Sat Oct-29-11 04:28 AM
Response to Reply #1 |
5. The most important change would be to treat all income the same. |
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Investment and earned income should be treated the same for income tax purposes.
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Scuba
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Sat Oct-29-11 07:16 AM
Response to Reply #5 |
madville
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Sat Oct-29-11 08:33 AM
Response to Reply #6 |
7. And treat all people the same |
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Even though I am now getting back money for making less and having a few dependents, it's not fair that one person pays and another doesn't.
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Luminous Animal
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Sat Oct-29-11 02:43 AM
Response to Original message |
2. Excellent. You have and extra $1400 a year to raise 2 kids and support a wife. |
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So it is like this. Single and take home pay = $37,000 per person.
Married with three dependents and take home pay = $38,400 = $9600 per person.
The only way you took home more money is if you starved and thus, killed your wife and kids.
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madville
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Sat Oct-29-11 02:56 AM
Response to Reply #2 |
3. I just always thought it was unfair for single people |
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Why should a single person actually pay taxes into the system while a married person in this instance actually gets more net take-home money by filing their taxes?
Your arguement doesn't make much sense either. Housing and utilities for instance really don't change that much going from married to single, for example we still live in the same house I have had for years and the bills are about the same as always.
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dkf
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Sat Oct-29-11 02:59 AM
Response to Reply #3 |
4. Also having kids makes you eligible for more safety nets. |
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A single person is pretty much on their own.
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Bluenorthwest
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Sat Oct-29-11 08:50 AM
Response to Original message |
8. And so do you understand why marriage equality matters? |
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You saved because you are allowed to file jointly. Gay couples are not allowed to do that. Discrimination,theft,unfair taxation, to please bigots in the straight community. We have been together for decades now. So, how nice for you and the rest of the Sanctified Ones. Must be great.
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TBF
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Sat Oct-29-11 08:54 AM
Response to Reply #8 |
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back when I was a paralegal I used to volunteer at a clinic to help AIDS patients file their forms for SSD. I was floored that their mates couldn't even get info from their doctors - they are not recognized legally as next of kin. So stupid.
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Bluenorthwest
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Sat Oct-29-11 09:00 AM
Response to Reply #10 |
11. These posts piss me off |
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So many post about single people getting the shaft, no straights ever think about those of us who are couples treated like singles. The op, no offense, is recently married and instantly has a child as well. We have been together for 20+ years, screwed most years by the bigoted tax code. And no one cares at all, instead they excuse the anti equality politicians and their 'ministers'. And it does hurt and anger me. I've paid lots of taxes, every year since age 18. Bit we do not count, all we did is worthless to straight America.
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TBF
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Sat Oct-29-11 08:52 AM
Response to Original message |
9. We are pretty high income but also a lot of debt - |
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and haven't managed to buy a house yet. Still we are working away at it. I found that by staying home with my kids we actually came out better with taxes (especially if the 2nd income isn't very high and you are still paying work clothes, parking, daycare). So our focus the last few years has been to cut spending and pay down that debt (we are professionals with the accompanying massive student loans). It has been going well, but we are so fortunate to still have work. So many others would love to have these problems.
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DU
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Fri Apr 26th 2024, 02:07 PM
Response to Original message |