Reply to Just saw our federal tax bill and nearly fainted

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If OP is self-employed, I totally understand.

Let's say:

fed income tax - 25%
MD income tax - 10%
self-employment tax - 15%
coming soon - $$$ Obamacare tax penalty (if you cant afford health insurance)

Total Tax - 50% + Obamacare tax penalty

And the Democrats say you should pay more (by repealing the Bush tax cuts - which cuts helped everybody, not just rich people)[/quote]
Yup, I'm sure the OP doesn't have any deductions--not even personal exemptions, let alone credits like the child tax credit.

And if s/he is self-employed, health insurance premiums can be deducted from AGI, which is a huge boon.[/quote]

1) An exemption is not a deduction - and they only save a taxpayer about $1,000 to $1,500 in income tax per year - wow.
2) He or she can't deduct health insurance premiums IF HE/SHE CAN'T AFFORD HEALTH INSURANCE - do you have any clue how expensive individual coverage for a family is???
3) The child tax credit gets phased out when people make over a certain income - another $1,000 tax saver - again, big numbers here. . . .
4) Itemized Schedule A expenses do not reduce the self employment tax.[/quote]

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