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Old 04-13-2014, 11:48 AM   #1
leebee
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Maine tax return… GRRRRR!!!

I am employed by the public school system, so I am REQUIRED to contribute to the Maine Public Employees Retirement System, which is a tax-deferred retirement program. It's tax-deferred for the feds; for the state tax return, we are required to add our PERS contributions INTO our federal income and then the state taxes us on the contributions. Of course, they'll tax us on the money when it's paid out during retirement, too. Tax deferred? To me, this seems to be DOUBLE TAXED… and no way to opt out.
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Old 04-13-2014, 12:02 PM   #2
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According to their website, you will pay federal taxes when you receive your money during retirement. You will not pay state taxes on the distributions because you've already paid those up front with your contributions. You are not being double taxed. You are paying state taxes now, and federal taxes later.
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Old 04-13-2014, 12:33 PM   #3
lauradis
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Most of the tax "scheme" are horse pooh.

Try investing more in retirement accts that are tax deferred, then the allotted federal except amt, you get "taxed" on the above exception amt first time around and taxed when you receive it.

But hey we get to retire before we die or too old to enjoy it
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Old 04-13-2014, 04:02 PM   #4
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Try wanting to opt out of social (in)security.

Quote:
Originally Posted by leebee View Post
I am employed by the public school system, so I am REQUIRED to contribute to the Maine Public Employees Retirement System, which is a tax-deferred retirement program. It's tax-deferred for the feds; for the state tax return, we are required to add our PERS contributions INTO our federal income and then the state taxes us on the contributions. Of course, they'll tax us on the money when it's paid out during retirement, too. Tax deferred? To me, this seems to be DOUBLE TAXED… and no way to opt out.
How about getting tax at the federal and state (possibly county/city don't know Maine well enough) and then the after taxed money is taxed again when you spend it to buy something.

$100 Earnings.
-$20 Fed
-$5 State
-$15 various FICA
====
$60 Take home

Tank of gas:

13% minimum tax on gas.
$7.80
=
$52.50 of actual earnings (best case for most folks) not spent on taxes out of $100 if that $100 is used to buy gas.


It's even worse if your try and spend your initial $100 of earnings on a cell phone bill, it goes up to about 55% of that $100 going to taxes overall.

People wonder why the economy can't get restarted? When half (or more) of everything most people earn goes to direct and indirect taxes, I'm surprised things are going as well as they are.
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