Author Topic: Texans and taxes  (Read 3045 times)

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Offline franksolich

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Texans and taxes
« on: March 08, 2008, 08:49:15 AM »
Last night (Friday night), while I was posting here, an automobile drove past the William Rivers Pitt and up the driveway; I immediately recognized it as belonging to someone for whom I had done income-taxes.

I almost immediately recognized two of the five people therein; Felix, a transplanted Texan, and his wife Annamaria.  Felix is about 35 years old, somewhat short and round, and like most Texans of Hispanic descent, dark.  His wife is perhaps a couple of years younger, and as wide as the side of a barn.  They have two young boys (who were not with them last night).

Felix works somewhere where one takes hides off of cattle; not at a slaughter-house or meat-packing plant, but a "rendering" place; this is the sort of job where one works perhaps ten hours one week, seventy hours the next week.  Felix made $68,000 last year, doing this (he has been doing this for about ten years); his wife does not work.

They all came to see me because Felix knew it had been my birthday, and because they were so happy at the simply-enormous income tax refunds, federal and state, they are getting.

Felix thinks franksolich had something to do with all this, but franksolich had nothing at all to do with it.

The deal is, even though married and with two children, Felix steadfastly insists upon having income-tax withholding done as if he were a single male, meaning that tons and tons more money is taken out, than what needs taken out, of each paycheck.

Felix got one Hell of a massive refund.

I've done income-taxes ever since I was in high school, and it always perplexed me that certain segments of society "feel better" about having too much deducted from their paychecks, and then when the inevitable refund results, they think the guy who did the paperwork made it possible.

These "certain segments" in Lincoln usually involved Vietnamese, Armenians, and Azerbaijanis; in Omaha, Sudanese and Hispanics; and out here in the Sandhills of Nebraska, Texans.

I've never been successful at persuading such people that maybe it's better for them to have this money in their pocket right now, rather than loaning it to the federal and state treasuries.

One thing I have done, and the lesson does seem to sink in, is that since about the time of the first Reagan tax-cuts in the early 1980s, I give "customers" a chart showing what they would have paid in income-taxes under Kennedy, under Johnson, under Nixon, under Ford, under the Incompetent One, up to the present president.

Actually, it's two charts, one adjusted for inflation since 1961, and the other just straight dollars.

I think it's important illumination, although most of us need no illumination about the way income-taxes have gone under Democrat and Republican presidents.

I have no idea how taxes have changed for the rich and the super-rich since 1961, but I'm intimately acquainted with how taxes have changed for the middle classes, the working classes, and the poor, the past forty-five years.

No one here needs to know how oppressive income taxes were for the middle classes, the working classes, and the poor, prior to Reagan; but there's a lot of people outside of here who need that illumination.
apres moi, le deluge

Offline Rick

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Re: Texans and taxes
« Reply #1 on: March 11, 2008, 11:23:22 PM »
I too have more taken out. I have been audited every year since 1983, when the First interstate Bank of New Jersey electronically transferred $50,000 to my IRA. This way I have money to pay when they find something.

I would like too see your charts.

Offline Lord Undies

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Re: Texans and taxes
« Reply #2 on: March 11, 2008, 11:32:49 PM »
I totally agree, Frank.  I have been doing people's taxes since at least 1913.  It amazes me how ignorant folks are about their federal taxes.  It amazes me how a big refund dazzles them.  It amazes me that I have been able to make so few people see that withholding tax is not a savings account.

I've heard every excuse in the world, too. 

Them:   "Oh, if I get it every week, I'll just spend it."

Me:  "Weren't you evicted from your apartment this year because you couldn't pay the rent?"

on and on and on.

Offline franksolich

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Re: Texans and taxes
« Reply #3 on: March 12, 2008, 04:49:46 AM »
I too have more taken out. I have been audited every year since 1983, when the First interstate Bank of New Jersey electronically transferred $50,000 to my IRA. This way I have money to pay when they find something.

I would like too see your charts.

Well, I need a hypothetical example, as each one is different.

A gross income, number of exemptions.

I don't bother with itemized deductions, just the standard deduction of the particular year; otherwise because rules on itemized deductions change much over the years, I would be spending until August just making one.
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Offline Chris_

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Re: Texans and taxes
« Reply #4 on: March 12, 2008, 07:58:46 AM »
Tax question...

In addition to my "regular job" where taxes are deducted from my pay, I will soon be working a second job as an independent contractor.  My second employer will provide a 1099 at the end of the year to document payments.  Do I just include that information with my regular tax filing the next spring or do I have to make tax payments (i.e. quarterly) before then?
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline Lord Undies

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Re: Texans and taxes
« Reply #5 on: March 12, 2008, 08:33:21 AM »
Tax question...

In addition to my "regular job" where taxes are deducted from my pay, I will soon be working a second job as an independent contractor.  My second employer will provide a 1099 at the end of the year to document payments.  Do I just include that information with my regular tax filing the next spring or do I have to make tax payments (i.e. quarterly) before then?


That depends on the amounts involved.  If it is worth your time, you will most likely have to pay quarterly.  If it's REALLY good, you'll have to pay monthly.  If it's FANTASTIC, you may want to consider direct tax deposits.  Don't forget your SS taxes will be all yours to pay.

Offline Amityschild

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Re: Texans and taxes
« Reply #6 on: March 22, 2008, 08:03:59 AM »
It is simply amazing how little people understand the income tax system.  They treat knowledgable tax preparers as demi gods.  If we had to write a check for taxes each month vs. the withholding system the country would revolt.

Here is a great forum for tax research I found: http://www.taxalmanac.org/index.php/Discussion_Forum_Index
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Offline Chris_

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Re: Texans and taxes
« Reply #7 on: March 22, 2008, 02:36:07 PM »
It is simply amazing how little people understand the income tax system.  They treat knowledgable tax preparers as demi gods.  If we had to write a check for taxes each month vs. the withholding system the country would revolt.

Here is a great forum for tax research I found: http://www.taxalmanac.org/index.php/Discussion_Forum_Index
What cracks me up is people who PLAN on a "tax refund."  A "tax refund" means YOU WITHHELD TOO LITTLE! THE GOVERNMENT GOT USE OF YOUR MONEY AND YOU GOT NOTHING! 

People who can't do basic math are pitiful.

I got 60 bucks back this year.  That is about as close as you can cut it.

If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.