Tax Refunds

[pilotbob]

Originally Posted by TallMomof2

I'd rather see a flat tax or a national sales tax. Our current system is ridiculous.

Here here! Support fairtax.org !!!

BOb

[VillageReader]

Originally Posted by HarryT

Could someone satisfy my curiosity, please?

Fictionwise say "Since many of our US customers will be receiving tax refunds this week...."

Why does one receive a "tax refund"? The way that the British tax system works is that, unless you run your own business, or something like that, income tax is simply deducated automatically from your salary by your employer, so you automatically pay the right amount of tax.

How does it work in the US to result in so many "refunds" being given?

Ah, but if it was that easy we couldn't sell tax preparation software, it would put tax consultants, tax lawyers, lots of other people out of work. We need complication. Even the IRS often doesn't know their own rules.

[DixieGal]

Originally Posted by Strether

Except that the "facts" need to be true. From the IRS website:

"Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment."

Jim

We are talking about taxes here, so there are many different "true facts." For us Alabamians, next year on our state forms we will have to include the federal rebate as "income" and the rebated tax will be re-taxed by the state. Is it clear as mud yet? 'Cuz I didn't mention that we always have to include our yearly regular federal tax refund to be taxed by the state. It's a tax on a tax on a tax and so on. However, with taxes being based on income.....

I WISH I PAID THE MOST TAXES IN THE U.S.!

Think about it

[slayda]

The only problem with the "Fair tax" is that it is not fair. The only problem with a national sales tax is that it wouldn't be long before they needed more money to give away to some special group and would start income taxes again (temporarily, of course but it would become permanent). Just my cynical opinion of course.

[pilotbob]

Originally Posted by slayda

The only problem with the "Fair tax" is that it is not fair.

I'm not sure why you say that... and don't really want to get into a debate about it. But, it's hella lot better than what we have now.

BOb

[pilotbob]

Originally Posted by DixieGal

We are talking about taxes here, so there are many different "true facts." For us Alabamians, next year on our state forms we will have to include the federal rebate as "income" and the rebated tax will be re-taxed by the state. Is it clear as mud yet? 'Cuz I didn't mention that we always have to include our yearly regular federal tax refund to be taxed by the state. It's a tax on a tax on a tax and so on. However, with taxes being based on income.....

I WISH I PAID THE MOST TAXES IN THE U.S.!

Think about it

I'm not sure how a rebate is income? So, I think you should strucutre your deductions so that you end up needing to pay a bit when you file. This way is will be an expense and you can deduct it from your state tax, right?

BOb

[Steven Lyle Jordan]

Originally Posted by tompe

And is the tax scale linear so if you get sick you should not pay less tax?

In the U.S., you're taxed (primarily) according to the income you receive. Some people continue to get paid by their employer when they are out sick, so they still pay tax on "sick leave" time. If you do not get paid during sick leave, you pay no tax on that time. (Whether you get paid or not depends on the job.)

I know everybody loves to hate taxes, but let's face it: Most of us live very extravagant and expensive lifestyles, and take for granted what would be considered luxuries in other countries (You know, little things like clean water, food, education, and someone to complain to when your car gets stolen. Not to mention internet service, eh?). If taxes weren't essentially supporting our infrastructure, most of us would be living in a lean-to and grunting at the other guy to get away from our fishing spot.

Under that light, I never complain about taxes.

[mjh215]

Originally Posted by pilotbob

I'm not sure how a rebate is income?

At what point did you start thinking ANYTHING with our tax code (coughgovernmentcough) was at all rational or reasonable? As far as the Fair Tax, it's a move in the right direction. And for that reason I support it. But it is still supporting a flawed system.

-MJ

[Steven Lyle Jordan]

Originally Posted by pilotbob

So, I think you should strucutre your deductions so that you end up needing to pay a bit when you file.

You're always better off paying the IRS... assuming you managed to actually save the money you'll owe them. That way you can bank or invest it and earn interest on your own money before you give it up.

[pilotbob]

Originally Posted by Steve Jordan

Under that light, I never complain about taxes.

I don't complain about having to pay taxes directly... But, I do compalin about:

1. Paying taxes on the same income more than once. See marriage penalty, see inheritence tax, see capital gains tax, etc.

2. What the government does with my tax dollars. Saying there is alot of waste in the federal government is an understatement.

3. The intrusive tax reporting and record keeping that I am required to do and the privacy I must give up to comply. This is one of the biggest reasons why I support the Fair Tax proposal.

4. The huge amount of people that don't pay tax because they earn their money illegally.

BOb

[DaleDe]

Originally Posted by Steve Jordan

You're always better off paying the IRS... assuming you managed to actually save the money you'll owe them. That way you can bank or invest it and earn interest on your own money before you give it up.

However the government is on to your trick. They want their money during the year and require estimated payments every quarter if you actually do this to the extent you could actually make money on it, i.e. will owe them an appreciable amount at the end of the year.

Dale

[pshrynk]

Originally Posted by DaleDe

However the government is on to your trick. They want their money during the year and require estimated payments every quarter if you actually do this to the extent you could actually make money on it, i.e. will owe them an appreciable amount at the end of the year.

Dale

I have been fined for overpaying and for underpaying. After several years of getting smacked with an "underpayment penalty," I had one employer withold about everything I made, thinking that I'd skip the penalty and have a nice little savings deposit after the first of the year. Got my taxes back from the CPA and -- overpayment penalty.

I guess it's a tribute to the terror tactics of the IRS that I actually filed again the next year.

[Steven Lyle Jordan]

Originally Posted by pilotbob

I don't complain about having to pay taxes directly... But, I do compalin about...

Well, I never said the system was perfect. That's a reason to complain about the government, though... not of taxes themselves. Anyway...

Originally Posted by pilotbob

This is one of the biggest reasons why I support the Fair Tax proposal.

Fair Tax proposal... and I just finished talking to a friend of mine about oxymorons...

[pilotbob]

Originally Posted by Steve Jordan

Well, I never said the system was perfect. That's a reason to complain about the government, though... not of taxes themselves. Anyway...



Fair Tax proposal... and I just finished talking to a friend of mine about oxymorons...

Heh... well, when I tell people there is NO NEED for personal income taxes they scoff at me and tell me we wouldn't have highways. I try to remind them that there was a time when there was no income tax... and the first income tax was to help fund the war, was only levied on the very rich and was supposed to be temporay...

Morons indeed....

BOb

[nrapallo]

I find it odd that in a thread discussing Tax Refunds, Big Brother, is watching (that is, Google)! Gotta be more careful....

See highlighted area of attachment.