Taxmageddon

Native_NM · April 16, 2012, 05:14:13 PM

Another reporting and tax season is behind me.

Filed the SEC reports and even managed to get the corporate taxes in pretty good shape. I filed the extension as usual.

On a personal note, I owe a bunch of money this year. I hate writing big checks to anyone but me!

On the other hand, I consider myself fortunate to have that problem, but it still hurts. We are in that band of earners that just lose child tax credits, etc, but are not wealthy enough to not care. My wife went back to work in 2011 and her salary pushed us into the next highest marginal rate. Even with the extra withholdings we got clobbered. Always the patriot, we pay our fair share and move on.

I'm more worried about next year. For those of you who have not heard the term 'Taxmageddon', you might want to do some research. Next year is shaping up to be ugly if the Obama tax cuts don't get extended.

http://www.businessinsider.com/chart-of-the-day-the-size-of-the-coming-tax-hikes-in-context-2012-4

http://www.nytimes.com/2012/04/15/sunday-review/coming-soon-taxmageddon.html

What does this mean to me, you ask? Well if you are earning $50,000 a year in 2012, your paycheck could drop $200 a month in 2013. Families making long-term decisions might get a huge shock. That is a car payment, cabin supplies budget, or land payment. Everyone should at least be aware of the potential and make informed decisions about long-term spending.

I'll leave the politics out, but just remember that most of the Bush tax cuts went to the middle class, contrary to what you might hear. Take it from your friendly CP accountant.

Now, on a different note, I have $3K worth of lumber sitting in the yard. I've decided to build a 16 x something in the yard and decide where to move it to after. If I keep waiting it will never happen...

NM_Shooter · April 16, 2012, 07:44:24 PM

Don't get me started.

I sent in our taxes yesterday. I continue to be amazed at the amount of money I pay, for having such little representation.

It would be easier to be a patriot if we weren't $15T in debt with nothing to show for it.

April 16, 2012, 08:55:18 PM

Quote from: NM_Shooter on April 16, 2012, 07:44:24 PM
Don't get me started.

I sent in our taxes yesterday. I continue to be amazed at the amount of money I pay, for having such little representation.

It would be easier to be a patriot if we weren't $15T in debt with nothing to show for it.

It is scary. My wife has decided it is not worth it to work. The kids are in high school and she has plenty to do keeping up with them. She is going to work P/T, but there is no benefit to working F/T to give almost half away.

Rob_O · April 16, 2012, 10:52:33 PM

Done! Owed $245, much less than I had planned on. I have money left in the bank account!

MountainDon · April 16, 2012, 11:24:32 PM

I forgot to reduce a couple of quarterly payments because one rental was empty for months while we tried to sell it. Then I messed up because I didn't realize I had extra exemption money due because I was 65. So we got federal and state refunds.

Haven't had that happen for some time. I must say that when you file electronically the refunds comes amazingly quick; just a matter of days, less than a week with a weekend included.

April 17, 2012, 08:43:44 AM

Filed for my largest tax return ever

the solar energy rebate was a nice addition too (30%)

I think this is the last year for that rebate -- too bad I think this was a very good use of tax incentives

fishing_guy · April 17, 2012, 09:02:15 AM

Don't even get me started...
We lost the last exemption...as well as the college credit. Ouch.
The good news...we only paid a $6 penalty for underpayment of taxes. The bad news...we had to cut them a sizable check. This claiming 0 exemptions withholding at the single rate.
They are going in the mail at 4:59 p.m. I hate giving them their cut until the last possible minute.

Tinga · April 17, 2012, 12:02:52 PM

Wow.. and I thought OUR tax situation was messed up. We are poor,monetarily challenged whatever.
Husband FINALLY got back to work *YEAH* with a flooring company.
Made less than 15k last year and somehow, with 2 kiddos that entitled us to 8k in refunds??? No way we spent 50% of our income on *just* the kids.

It's outrageous, the gubment is PAYING PEOPLE to stay poor.