Tax refunds

unfortunately, if you are an "EMPLOYEE" and are issued a W-2, there is no alternative to withholding. you could change your status (fill out a new W-4) so they withhold less, but if it is TOO little, you'll get hit with penalties.

i am fortunate that as a self employed person, i pre-pay my taxes quarterly, and b/c i keep a close eye on the gross each week, i can titrate how much i send in each quarter in order to be more on-target with what the total taxes owed are come april. this would work also for people who are independent contractors and are issued a 1099 in january. no withholding, but you have to pre-pay.
 
Yeah. . there is no CAP per say, just a 100% reduction in the payout . . . . .

It could be an interesting discussion on who REALLY is paying for the stimulus package.

On one level. . .*I* am paying for it. But in reality. . the gooberment was already writing hot checks before this package went out the door. All they do is sell more T-Bills right?

Hmmm. Who makes them sell T-Bills? I suppose they could just print money (so to speak). If they just started printing money. . .without telling anyone. . .would you notice? If it was an *extreme* amount -> It would be noticable. But a small amount (say, 1% of GDP). . .could anyone tell. . . .hmmmm.
 
that's the way i'd like to remember old chuck. there he is, all bitter, clinging to his gun (the bible is on the rock just off-camera), and not trusting anyone over 30! :thumbsup:

skibum is right - if john lennon and all those dead hip-hop artists can still be productive, why cant charlton heston run this country from the grave?
 
This stimulus payment subject will be going again next spring at tax time. Next year there will be a new credit allowed that will reduce the tax liability of alot of people. This credit is no different than any other credits they currently allow. It reduces your tax liability. The stimulus money dished out now is actually an advance on the tax savings that is generated by this credit.. The current stimulus payment is being calculated on 2007 AGI. Come spring 2009 it will be recalculated on 2008 AGI. Some people will actually get more at that point. For those that got more than they should have they will not have to pay back.
 
Woody said:
The stimulus money dished out now is actually an advance on the tax savings that is generated by this credit.
Click to expand...

Say what now? Can we translate that into American English? So you are saying this *credit* will generate a Savings on my 2008 tax bill? And that savings is being paid out in advance this month?

Wow. . .that's a nice bit of circular logic.

Oh wait. . .I get it now. . . the CREDIT is going to put the economomy in a tail spin such that I am going to lose my job. And after losing my job. . .my 2008 tax bill will be much lower. . . and instead of a refund in April 2009 (because my income will drop like a rock), they send me the check in April 2008? (so that I spend it *now* when I don't need it, instead of April 2009 when I really need it???)

Or (to state it a bit less cynically). . . .the credit will stimulate the economy so much that it will produce HUGE tax revenues. So huge that the government books will be balanced and we can have a non-debt-producing tax cut while still being fiscally responsible?

- - - - - -

To put this in real terms . . .I doubt I will lose my real job. . .but the stimulus package is helping to tank the U.S. equity markets. And since the equity markets are tanking, my capital gains income for 2008 will be much, much less. And since my capital gains income will disappear. . .then my tax bill for 2008 will be much less. Huh. Holy crap. This stimulus might really work!! except I didn't get a stimulus check. . . . . . .
 
Shhhhhh! They might ask for the money back!
 
comsnark said:
Say what now? Can we translate that into American English? So you are saying this *credit* will generate a Savings on my 2008 tax bill? And that savings is being paid out in advance this month?

Wow. . .that's a nice bit of circular logic.

Oh wait. . .I get it now. . . the CREDIT is going to put the economomy in a tail spin such that I am going to lose my job. And after losing my job. . .my 2008 tax bill will be much lower. . . and instead of a refund in April 2009 (because my income will drop like a rock), they send me the check in April 2008? (so that I spend it *now* when I don't need it, instead of April 2009 when I really need it???)

Or (to state it a bit less cynically). . . .the credit will stimulate the economy so much that it will produce HUGE tax revenues. So huge that the government books will be balanced and we can have a non-debt-producing tax cut while still being fiscally responsible?

- - - - - -

To put this in real terms . . .I doubt I will lose my real job. . .but the stimulus package is helping to tank the U.S. equity markets. And since the equity markets are tanking, my capital gains income for 2008 will be much, much less. And since my capital gains income will disappear. . .then my tax bill for 2008 will be much less. Huh. Holy crap. This stimulus might really work!! except I didn't get a stimulus check. . . . . . .
Click to expand...
First I'll say that the gov sure did a pee poor job of putting info out so that people could understand what this stimulus payment is. Next I'll tell you to search the net and you'll find what I'm talking about. I don't think my post can be much clearer. I am not trying to debate the effect of this stimulus plan on the economy or in particular your job.
 
skibum said:
Some people have no clue how much they really give away. At least making them write the check every week would provide some visibility to the issue. I'll bet even the folks in the lowest tax brackets would start squealin' like stuck pigs.
Click to expand...

and most employees have no idea that the employer is having to match his 8.75% FICA contribution in addition to the amount thet are paying in.
 
FICA is 6.2% for each (employee and employer), making a total of 12.4%. i havent heard of an increase in this percentage.
 
We arent getting back squat from this "economic stimulus" check thingy. Kinda bullchit that they are making exceptions based on income at all, since the ones who deserve it most in my opinion are the ones who already put the most money into the economy.

As usual, redistribution of wealth occurs and we make up for those lacking motivation to become successful.
 
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Woody said:
First I'll say that the gov sure did a pee poor job of putting info out so that people could understand what this stimulus payment is. Next I'll tell you to search the net and you'll find what I'm talking about. I don't think my post can be much clearer. I am not trying to debate the effect of this stimulus plan on the economy or in particular your job.
Click to expand...

holy-F'ed-up-tax-code batman!

I did a search. . . . . so this is a credit on the 2008 returns, and the checks going out now is a no-risk advance? http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/

Bottom line is if I didn't get money now because my 2007 income was too high, I get a second chance based upon 2008 income? Hahahahah. That is *so* retarded it is simply beyond words.

But thanks for pointing this out to me. . .I simply had no idea. . . .

- - - - - - - - - - - - - -

As for redistribution of wealth: I hear that one. Making this thing go out to those who *pay nothing* is way over the top. And I am personally in *favor* of a progressive tax code.

But I favor progressive taxes in *moderation*. Kind of like alcohol. Alcohol in moderation is good. Too much alcohol, like too much taxes, can be real bad.

Sometimes, a good idea can just go too far. This is one of those cases.
 
Their crappy job of disseminating info created alot of confusion. The important point is the stimulus is a result of a change that reduces the taxes some have to pay. At this time they're saying this is a one time credit but who knows maybe they'll choose to do it again in the future. Not everone gets some and yes we can debate the amounts. But for those on the recieving end what's to complain about.
 
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Progressive tax schemes are bunk.

Part of the reason that we have so many "poor" (not really, compared to other countries...) people is that they get hit hard with taxes as soon as they start to make any real money. This prevents them from ever catching up or getting ahead, so they quit trying and just sit around waiting for the government to tax the hell out of Gary and send it to them. If anyone in Washington believes in a real progressive tax code, how about making the 2nd tax bracket start at something like $250,000?

My tax plan: take whatever the government spends, divide it by the number of citizens over 18 that live here, send each one a tax bill for that amount. I don't give a rat's you know what if you work or not. Your over 18 and you live here - you pay your share. Part 2 - part of the tax bill sent out would be an itemized list of every area where the government spends money, and how much of your taxes go to each one. If you want the government to run that program, check off the box, and it gets funded. If you don't want to pay for that program, leave the box blank, and subtract the appropriate amount from your payment. This way, anything that the people don't want to get funded, won't. Of course, we'd have to make the basic necessities manditory. You know, the military, bombers, nukes, 14,000 busses to haul the illegals back to Mexico, state parks, coast guard, etc...

Michael
 
Woody said:
But for those on the recieving end what's to complain about.
Click to expand...

The fact that it hasn't been available for my use since the government confiscated it. Ever hear of the "time value of money"? Guess what? They've had MY money for a period of time, and I didn't. They profitted off of it and I did not. It was me that earned it, so I should have had that "value", not them... In effect... they HAVE stolen from me.

Michael
 
comsnark said:
holy-F'ed-up-tax-code batman!

I did a search. . . . . so this is a credit on the 2008 returns, and the checks going out now is a no-risk advance? http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/

Bottom line is if I didn't get money now because my 2007 income was too high, I get a second chance based upon 2008 income? Hahahahah. That is *so* retarded it is simply beyond words.

But thanks for pointing this out to me. . .I simply had no idea. . . .

- - - - - - - - - - - - - -

As for redistribution of wealth: I hear that one. Making this thing go out to those who *pay nothing* is way over the top. And I am personally in *favor* of a progressive tax code.

But I favor progressive taxes in *moderation*. Kind of like alcohol. Alcohol in moderation is good. Too much alcohol, like too much taxes, can be real bad.

Sometimes, a good idea can just go too far. This is one of those cases.
Click to expand...
If you haven't done it already go to the IRS stimulus calculator(one of the guys posted the link on this thread) and plunk in the numbers they ask for, then you'll know where your at instead of guessing. I know all us SR guys are loaded but it takes a decent size income before you're phased out.
 
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Skibum:

Yeah. . .check off boxes so the taxpayers control funding. . . .I can *imagine* how that would work.

What would be considered mandatory? What would be considered discretionary?
Some would consider "social security" discretionary. Some would consider "military" discretionary. Others would consider "paying interest on the debt" discretionary.

- - - -
 
skibum said:
The fact that it hasn't been available for my use since the government confiscated it. Ever hear of the "time value of money"? Guess what? They've had MY money for a period of time, and I didn't. They profitted off of it and I did not. It was me that earned it, so I should have had that "value", not them... In effect... they HAVE stolen from me.

Michael
Click to expand...
It might be a good experience for you to discuss this with someone who has alot of knowledge on the subject of the gov and how they tax. Perhaps you and Wesley Snipes could get together.
 
Woody said:
If you haven't done it already go to the IRS stimulus calculator(one of the guys posted the link on this thread) and plunk in the numbers they ask for, then you'll know where your at instead of guessing. I know all us SR guys are loaded but it takes a decent size income before you're phased out.
Click to expand...

Well. . . I am single. I don't have to check for either 2007 or 2008.
If I get married, "the most likely candidate" and I together also don't have to check either for 2007 and 2008.

And no. . .I am *not* loaded.

I actually hope it is a one time credit. . . because I am one of those very few people who don't believe in deficit spending. I also don't believe in a goofball tax code riddled with special interest deductions and stupid-gimmie-gimmie tax credits. Once you get a real federal budget. . then set *approriate* tax rates to cover the legitimate spending.

I favor a straight forward progressive tax code that can be filled out with a one page form and 20 minutes. Maybe you get a deduction for mortgage interest. .. but let everything else go to blazes.

- - - -

I noticed both the democratic contenders seem to not want to raise taxes on the middle class. . which seems (by them) to be $200-$250K. Won't that be nice. Except that I am hearing much squirming when "capital gains" rates or "wage tax cap" are mentioned.

- - - - -

Skibum: The 'credit' is nominally a 2008 credit, which you are getting *now*. This is *NOT* a 2007 tax rebate. By your logic, you actually might be coming out ahead since with-holdings are taken across the entire year, but you are getting this money NOW.

Of course. . .this is all insane, any which way you slice it.

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