Reply to When making more actually is a real tax disadvantage?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The thing that's dumb is that you're presenting this argument in terms of your refunds for the respective years rather than your actual tax liabilities.[/quote]

The refund is a shorthand for tax liability in this case because of how I do taxes as a freelancer who is married to someone who is not. For people who have taxes taken out of their paychecks, a refund just reflects your overpayment after deductions are applied. For a freelancer, the refund is a more direct reflection of tax liability because I have to pay my taxes, including payroll taxes, separately.[/quote]

No, it isn't. It's a reflection of your husband being overwithheld (last year) and your quarterly payments. You do make quarterly payments, right?

It's not a good barometer of your tax liability or where you're hitting a marginal tax threshold.

Your payroll taxes aren't income taxes so aren't really part of this equation.

Look at total income and total income taxes paid to compare. Everything else is just illusory. Your $9,000 tax refund was financially foolish. Especially in this interest rate environment. [/quote]

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