Taxes - big jump this year?

[Anonymous]

Just sent off an unexpected 18K check to the IRS.

Our landscaping will be not happen this year

[Anonymous]

Anonymous wrote:Good thing none of you have kids in schools, or drive on roads or (about to fall down) bridges or fly in airplanes controlled by the FAA or eat inspected food or anything. Your taxes pay for nothing! NOTHING, I tell you!

(They also pay for those two deficit-financed wars that the Republicans you are going to vote for from now on decided were a good thing.)

Not pp, but -- Schools are funded at the local and state level. In 2012, the rest of all of those things you mention consumed 17 percent of the federal budget. Defense spending was 19 percent. I don't have the 2013 numbers handy, but the percentages were even smaller, even before recent defense cuts. The rest is mandatory spending -- Medicaid, social security, etc. The majority of taxes are going to pay for programs I don't use (I'm fully expecting social security to be means tested by the time I qualify). If we don't get mandatory spending under control, it won't be long before a 100 percent tax on the "rich" won't cover it. The current system is unsustainable.

[Anonymous]

Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Summary from Forbes:

Now, let’s get to the good stuff. As you may remember, 2013 was a pivotal year in tax policy. Beginning on January 1st, a series of tax increases proposed and signed into law by President Obama came into effect, including:


A new maximum rate on ordinary income of 39.6%. The rate applies only to taxable income in excess of $450,000 (if married filing jointly, $400,000 if single).
A new maximum rate on qualified dividends and long-term capital gains of 20%, but once again, only if the taxpayer’s taxable income exceeds $450,000/$400,000.
A resuscitated limitation on itemized deductions; taxpayers with adjusted gross income in excess of $300,000 (if married filing jointly, $250,000 if single) lose 3% of most itemized deductions (maxing out at 80% of itemized deductions) for each dollar adjusted gross income exceeds the threshold.
A taxpayer’s personal exemptions are phased out once adjusted gross income exceeds the $300,000/$250,000 thresholds. Mechanically, once a married taxpayer has adjusted gross income in excess of $400,000, the exemptions are gone.
A new payroll tax was born. Starting in 2013, taxpayers with earned income from wages or self-employment income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 0.9% Medicare tax on the excess earnings.
Lastly, and perhaps most famously, taxpayers with adjusted gross income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 3.8% surtax on “net investment income,” which includes items such as interest, dividends, capital gains, rents, and royalties.

Holy s. I think we ticked each of these boxes this year.

Lucky you! You are incredibly wealthy.

Umm are you stupid? Mark cuban is wealthy 400k is not.

Seriously? Mark Cuban is stupid rich. $400k is beyond wealthy by any stretch of the imagination.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Summary from Forbes:

Now, let’s get to the good stuff. As you may remember, 2013 was a pivotal year in tax policy. Beginning on January 1st, a series of tax increases proposed and signed into law by President Obama came into effect, including:


A new maximum rate on ordinary income of 39.6%. The rate applies only to taxable income in excess of $450,000 (if married filing jointly, $400,000 if single).
A new maximum rate on qualified dividends and long-term capital gains of 20%, but once again, only if the taxpayer’s taxable income exceeds $450,000/$400,000.
A resuscitated limitation on itemized deductions; taxpayers with adjusted gross income in excess of $300,000 (if married filing jointly, $250,000 if single) lose 3% of most itemized deductions (maxing out at 80% of itemized deductions) for each dollar adjusted gross income exceeds the threshold.
A taxpayer’s personal exemptions are phased out once adjusted gross income exceeds the $300,000/$250,000 thresholds. Mechanically, once a married taxpayer has adjusted gross income in excess of $400,000, the exemptions are gone.
A new payroll tax was born. Starting in 2013, taxpayers with earned income from wages or self-employment income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 0.9% Medicare tax on the excess earnings.
Lastly, and perhaps most famously, taxpayers with adjusted gross income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 3.8% surtax on “net investment income,” which includes items such as interest, dividends, capital gains, rents, and royalties.

Holy s. I think we ticked each of these boxes this year.

Lucky you! You are incredibly wealthy.

Umm are you stupid? Mark cuban is wealthy 400k is not.

Seriously? Mark Cuban is stupid rich. $400k is beyond wealthy by any stretch of the imagination.

Being rich is having money; being wealthy is having time

http://elitedaily.com/money/entrepreneurship/difference-rich-wealthy/

[Anonymous]

Anonymous wrote:Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

You didn't get fucked. You didn't plan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

You didn't get fucked. You didn't plan.

$4600 here. We make about 170K combined and don't own a home, so no mortgage interest deductions, etc. Phased out of almost every deduction we used to take.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Summary from Forbes:

Now, let’s get to the good stuff. As you may remember, 2013 was a pivotal year in tax policy. Beginning on January 1st, a series of tax increases proposed and signed into law by President Obama came into effect, including:


A new maximum rate on ordinary income of 39.6%. The rate applies only to taxable income in excess of $450,000 (if married filing jointly, $400,000 if single).
A new maximum rate on qualified dividends and long-term capital gains of 20%, but once again, only if the taxpayer’s taxable income exceeds $450,000/$400,000.
A resuscitated limitation on itemized deductions; taxpayers with adjusted gross income in excess of $300,000 (if married filing jointly, $250,000 if single) lose 3% of most itemized deductions (maxing out at 80% of itemized deductions) for each dollar adjusted gross income exceeds the threshold.
A taxpayer’s personal exemptions are phased out once adjusted gross income exceeds the $300,000/$250,000 thresholds. Mechanically, once a married taxpayer has adjusted gross income in excess of $400,000, the exemptions are gone.
A new payroll tax was born. Starting in 2013, taxpayers with earned income from wages or self-employment income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 0.9% Medicare tax on the excess earnings.
Lastly, and perhaps most famously, taxpayers with adjusted gross income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 3.8% surtax on “net investment income,” which includes items such as interest, dividends, capital gains, rents, and royalties.

Holy s. I think we ticked each of these boxes this year.

Lucky you! You are incredibly wealthy.

Umm are you stupid? Mark cuban is wealthy 400k is not.

No. (I'm just a parent who lives on a normal salary). But I'd suggest that you are. $400,000 in annual salary is a lot of money to 99 percent of this country.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

You didn't get fucked. You didn't plan.

$4600 here. We make about 170K combined and don't own a home, so no mortgage interest deductions, etc. Phased out of almost every deduction we used to take.

What prior deductions were you phased out of?

[Anonymous]

Anonymous wrote:... Schools are funded at the local and state level. ...

Not accurate. Significant portions of local school budgets come from federal grants. Below is just one example. A quick search will yield dozens more examples.

Schools across the country are sending out pink slips as they brace for the possibility of deep federal budget cuts .... Congress fail[ed] to reach a deal to stop the across-the-board cuts, known as sequestration, which could force thousands of teachers out of their jobs. ... Federal officials estimate that they will be forced to trim more than $1.3 billion in education spending, most of which goes toward programs for poor children and students with disabilities.
http://www.washingtonpost.com/local/education/us-schools-brace-for-federal-funding-cuts/2013/02/21/eb7dbdf8-7c39-11e2-82e8-61a46c2cde3d_story.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

You didn't get fucked. You didn't plan.

$4600 here. We make about 170K combined and don't own a home, so no mortgage interest deductions, etc. Phased out of almost every deduction we used to take.

What prior deductions were you phased out of?

Student loan interest. Child tax credit. Dependent care.

[Anonymous]

Ours was almost exactly the same as last year.

[Anonymous]

I feel better reading this and knowing that we aren't alone with the massive increase. Our total tax bill (state plus Fed) was $88k last year and $105k this year. We made quarterly payments based on last year's taxes so this was a very unpleasant surprise. My earnings from self-employment have a huge impact. Ugh - we really don't have cash laying around to pay the unexpected bill either. We make good money, but it really feels like we will never catch up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yep, we got f*cked. $4500 we weren't expecting to have to pay at all.

You didn't get fucked. You didn't plan.

$4600 here. We make about 170K combined and don't own a home, so no mortgage interest deductions, etc. Phased out of almost every deduction we used to take.

What prior deductions were you phased out of?

Student loan interest. Child tax credit. Dependent care.

REALLY? I thought that only happened to HHI's $250 and more. I'm anxiously awaiting my taxes, accountant filed for an extension, but will have them back soon. I know we are going to owe, but I'm dreading to know how much. Our gross HHI is about $170,00 also.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Summary from Forbes:

Now, let’s get to the good stuff. As you may remember, 2013 was a pivotal year in tax policy. Beginning on January 1st, a series of tax increases proposed and signed into law by President Obama came into effect, including:


A new maximum rate on ordinary income of 39.6%. The rate applies only to taxable income in excess of $450,000 (if married filing jointly, $400,000 if single).
A new maximum rate on qualified dividends and long-term capital gains of 20%, but once again, only if the taxpayer’s taxable income exceeds $450,000/$400,000.
A resuscitated limitation on itemized deductions; taxpayers with adjusted gross income in excess of $300,000 (if married filing jointly, $250,000 if single) lose 3% of most itemized deductions (maxing out at 80% of itemized deductions) for each dollar adjusted gross income exceeds the threshold.
A taxpayer’s personal exemptions are phased out once adjusted gross income exceeds the $300,000/$250,000 thresholds. Mechanically, once a married taxpayer has adjusted gross income in excess of $400,000, the exemptions are gone.
A new payroll tax was born. Starting in 2013, taxpayers with earned income from wages or self-employment income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 0.9% Medicare tax on the excess earnings.
Lastly, and perhaps most famously, taxpayers with adjusted gross income in excess of $250,000 (if married filing jointly, $200,000 if single), will pay an extra 3.8% surtax on “net investment income,” which includes items such as interest, dividends, capital gains, rents, and royalties.

Holy s. I think we ticked each of these boxes this year.

Lucky you! You are incredibly wealthy.

Umm are you stupid? Mark cuban is wealthy 400k is not.

No. (I'm just a parent who lives on a normal salary). But I'd suggest that you are. $400,000 in annual salary is a lot of money to 99 percent of this country.

Might be true, but that doesn't make it any easier. Love the constant theme that if you make some money on this board that your financial problems don't really sting, they are only mild setbacks - leave the real complaining to those of us with real problems!

What a joke.

Last year, I cut a check for $26K - this year it was over $90K. Total federal burden of $425K. We were prepared, but it is painful.


Now, to the comment above, the roads I drive on aren't any nicer than anybody else's, the schools aren't any better but the burden is certainly on the high end and borders on ridiculous.