Taxes a REAL budget buster!

[djbleach]

We are by no means rich. Middle class if there is still such a thing. (no it seems like most middle class are living pay check to pay check.) Rich keep getting.....and poor get from the middle for a hand out.
I'm not opposed to helping people who help themselves, anyway. I'm just so upset I think I want to join the tea party or something!!

If I've got this correct, the government gets 36% out of my weekly pay.
Then my aunt passes and I get the executure fee. I bump my 401K up to try and offset any penalties. Well 25% going to 401 didn't do It. Still have to pay $4700. Unbelievable to me.
Insult to injury. Contractors in Iraq, etc. get tax free up to 90k!! Not talking about military. Contractors, living on base, room and board free, making up to or over 100k, don't have to pay taxes up to 90k.
Only in America.
It's depressing. Gas, food, electric , etc. are all just steady going up.
Anyway.
What's the secret. How do you make out so you don't have to pay and still be able to live weekly.

 

[okeydokey]

Well I guess you could move to Iraq and work there. I prefer to stay home and pay taxes for the services we have all come to expect and desire.

 

[Purseval]

Insult to injury. Contractors in Iraq, etc. get tax free up to 90k!! Not talking about military. Contractors, living on base, room and board free, making up to or over 100k, don't have to pay taxes up to 90k.

Actually they can get it all tax free but they have to be back in America less than 30 days/year or it is all taxable. They also work their butts off for that money, 14 to 16 hours a day 7 days a week. There is nothing to do there besides work and sleep and people trying to kill you. If you think it's so unfair I suggest you apply for a job. Kiss your family goodbye for a year and have at it.

 

[scrapquitler]

Insult to injury. Contractors in Iraq, etc. get tax free up to 90k!! Not talking about military. Contractors, living on base, room and board free, making up to or over 100k, don't have to pay taxes up to 90k.

I believe that any American living abroad has an exemption from paying income taxes (presumably they have to pay something in the country where the income is earned, and they aren't getting all the so called benefits of living here). So it's not just the contractors. But those people are in a REALLY dangerous situation. I'm willing to give them some benefits to compensate for the fact that they are risking their lives like that.

Do you think you shouldn't have to pay anything? I don't like paying either, but if you are being withheld at 36%, your income is fairly decent, and a good tax planner can tell you how to minimize what you need to pay. If you want to get a refund or not have to pay extra each April, have more withheld.

 

[mombrontrent]

Not only in America.
I live in Canada and pay huge taxes, probably quite a bit more then you do but we do have health care. I am fine paying taxes to have the things we have come to expect and desire (health care, safe roads, great schools which are far superior to US schools, public libraries ect. ect. ect.). What I don't like is how our government and I am sure the US government as well wastes SO MUCH of our tax dollars on redicoulous things! (like election after election, stupid public advertising, useless studies ect.ect.ect.)

 

[clutter]

If you're getting 36% taken out of your pay, you are either enormously well-paid or you will be getting a heck of a refund. I think you have your top tax rate confused with how much you pay over all. Even if you end up in the 36% bracket, your total tax burden is not that much. Now, if you got a fee for performing executor duties and have to pay taxes on that, it will be taxed at your highest bracket. Divide your total tax liability by your total income. That's your tax rate.

As for the contractors in Iraq, that's a dangerous job, but if you really want the tax benefit, good luck to you.

 

[funcinderella]

OP, I hear ya. (Don't know enough about Iraq workers to comment on that part!) I don't know your location but I live in NJ, am a single mother and making approx $100k per year, the federal government considers that rich! My child tax credit are almost phased out, even as HOH. I own a home but it is not luxurious, 1100 square feet on 50 X 100 property, and for that I pay 7k per year in property taxes, and original price of $420k. We take our vacations, and are not going hungry, but we are MIDDLE class, and not close to wealthy by any stretch of the imagination. It just frustrates me that location is not taken into account for federal tax purposes...grr... all I want is the tax credits that people living in middle America, making half what I do but living in a 4000 sq ft home, are entitled to... it's even worse for the married folks here in NJ. A couple of married teachers would not qualify for any tax credits...it's just wrong...

 

[Purseval]

A couple of married teachers would not qualify for any tax credits...it's just wrong...

Nobody is stopping you or those teachers from moving to middle America and buying that 4000 square foot house.

 

[JoiseyMom]

OP, I hear ya. (Don't know enough about Iraq workers to comment on that part!) I don't know your location but I live in NJ, am a single mother and making approx $100k per year, the federal government considers that rich! My child tax credit are almost phased out, even as HOH. I own a home but it is not luxurious, 1100 square feet on 50 X 100 property, and for that I pay 7k per year in property taxes, and original price of $420k. We take our vacations, and are not going hungry, but we are MIDDLE class, and not close to wealthy by any stretch of the imagination. It just frustrates me that location is not taken into account for federal tax purposes...grr... all I want is the tax credits that people living in middle America, making half what I do but living in a 4000 sq ft home, are entitled to... it's even worse for the married folks here in NJ. A couple of married teachers would not qualify for any tax credits...it's just wrong...

I am also in NJ, our property taxes are over 10k/year. I just had this same conversation with my accountant yesterday. That in NJ we are just normal middle class...just getting by. But you put our income elsewhere and we would be rich.... It is crazy...and nope...not fair.

 

[JoiseyMom]

Nobody is stopping you or those teachers from moving to middle America and buying that 4000 square foot house.

Sure there is...jobs, family...connections. Not that easy to pick up and go.

 

[robinb]

We are by no means rich. Middle class if there is still such a thing. (no it seems like most middle class are living pay check to pay check.) Rich keep getting.....and poor get from the middle for a hand out.
I'm not opposed to helping people who help themselves, anyway. I'm just so upset I think I want to join the tea party or something!!

If I've got this correct, the government gets 36% out of my weekly pay.
Then my aunt passes and I get the executure fee. I bump my 401K up to try and offset any penalties. Well 25% going to 401 didn't do It. Still have to pay $4700. Unbelievable to me.

An executor fee is about 3% of the estate and you need to pay $4700 in taxes? On 3% of an estate? You got $14K to administer your aunt's estate above and beyond what you will be getting in inheritance and you are complaining? Oh Brer Bear! Don't throw me into THAT brier patch!

 

[Purseval]

Sure there is...jobs, family...connections. Not that easy to pick up and go.

People do it all the time. In fact it's so common they have a name for it, voting with your feet. If you are making excuses then you obviously aren't as unhappy about your situation as you claim to be.

Those mid-Americans with the 4000 square foot houses probably don't get paid as much as the people in NJ either. Then again, with lower taxes, housing costs and overall cost of living companies don't have to pay as much to attract them, which is why companies are moving out of places like New Jersey and into mid-America, the South and other parts of the country that place less of a burden on them.

 

[crisi]

If I've got this correct, the government gets 36% out of my weekly pay.

Well, off the bat, you got that wrong. Your top marginal rate is 35%. You only pay that on (assuming your are married filing jointly) income OVER $373,650. From $209,250 and $373,650 you pay 33%, from $137,300 and $209,250 28%, and so on. And that is on taxable income - after you've taken your exemptions and your deductions.

Granted, FICA will take another 11.5% on the first (this one is from memory) 108k. And your state and local tax burdens - including property, income, sales, etc. will add to that. But its really rare to find anyone who ends up paying 36% of their weekly pay, even fully loaded.

 

[BBandDisney]

 

[marie1203]

W
Insult to injury. Contractors in Iraq, etc. get tax free up to 90k!! Not talking about military. Contractors, living on base, room and board free, making up to or over 100k, don't have to pay taxes up to 90k.
Only in America.

Seriously?!?!You are way out of touch with reality if you think your job here compares to the job of the contractor over in WAR zone. We all got choices if you want your 90k then please by all means apply to be one. Most contractors do more dangerous jobs that our military. We know one that died doing his job so please don't even go there. Yeah that is what contractors do hang around base in the nice AC tents, eating the amazing FREE food they provide on base, and the amazing view that war zone provides . Oh yeah and some contractors make way more than that depending on the job. We all have choices we choose were to live (unless you are in the military), what to buy, where to go, what career we go on to. If you are not happy with it then move, change jobs, etc.

 

[DawnM]

I think you need to take a closer look at what is actually being taken out FOR TAXES ONLY and re-figure. I don't think you have that right.

Now, it could be 36% if you are looking at your NET income and deducting your GROSS directly, but that would only be because that includes taxes, retirement, social security, FICA, and maybe a few other things depending on how your employer has things set up.

There is no big "secret" out there, however, there is a lot of confusion over what one actually pays it seems.

Dawn

 

[ICF]

all I want is the tax credits that people living in middle America, making half what I do but living in a 4000 sq ft home, are entitled to... it's even worse for the married folks here in NJ. A couple of married teachers would not qualify for any tax credits...it's just wrong...

Exactly how is it "wrong"? Tax credits are the same for all people.

Do you REALLY think that tax credits should be adjusted due to cost of living?
People think taxes (and our governemnt in general) are messed up now, imagine if they said that your income level for tax credit purposes were zip code specific. Yeah, that would go over really well.

You chose to live in NJ and elect officials that have you pay property taxes that are triple what mine are for a house 1/3rd of my size. If you are unhappy there, move. Sure, it may be tough to find a job but sell that $400K house and move someplace else where you can get a house that size for $100K or take that $400K and buy a nice big house rather then one that tiny.

 

[eliza61]

We are by no means rich. Middle class if there is still such a thing. (no it seems like most middle class are living pay check to pay check.) Rich keep getting.....and poor get from the middle for a hand out.
I'm not opposed to helping people who help themselves, anyway. I'm just so upset I think I want to join the tea party or something!!

If I've got this correct, the government gets 36% out of my weekly pay.
Then my aunt passes and I get the executure fee. I bump my 401K up to try and offset any penalties. Well 25% going to 401 didn't do It. Still have to pay $4700. Unbelievable to me.
Insult to injury. Contractors in Iraq, etc. get tax free up to 90k!! Not talking about military. Contractors, living on base, room and board free, making up to or over 100k, don't have to pay taxes up to 90k.
Only in America.
It's depressing. Gas, food, electric , etc. are all just steady going up.
Anyway.
What's the secret. How do you make out so you don't have to pay and still be able to live weekly.

Yes, you are right Taxes suck. no doubt about it but let's get a reality check.

You've got 25% of your income going into your 401K? If you've got that much going into an accoount you can't touch for a few years, you are by no means poor.

You got taxed on your executor fee, in order for that to kick it, the estates was pretty hefty and you got a nice piece of change for it. Once again no way are you hanging out on a corner, pan handling.

won't even touch the Iraqi comment. there isn't enough money in the world to get me to work in a war zone.

and as Crisi pointed out, if you are in the 33% bracket, middle class would not be what I described you.

I think you might just be a bit frustrated in writing that check to the IRS. I totally understand as I average ~3k this year but in the grand scheme of things, I made a decent living and that too is in America

 

[mrodgers]

I own a home but it is not luxurious, 1100 square feet on 50 X 100 property, and for that I pay 7k per year in property taxes, and original price of $420k. We take our vacations, and are not going hungry, but we are MIDDLE class, and not close to wealthy by any stretch of the imagination. It just frustrates me that location is not taken into account for federal tax purposes...grr... all I want is the tax credits that people living in middle America, making half what I do but living in a 4000 sq ft home, are entitled to...

Seems you are quite mistaken on how us "poor" folks live. I am that one making half of what you do and I certainly don't live in a 4000 sq. foot home. I'm living in a 1007 sq. ft home that cost $88k and have to search under the seats in the car to pay it.

Also wondering what all the tax credits are that you say I get, because I'd like to start getting them. I get the child tax credit and that is it. Oh, forgot about the "making work pay" credit, but that is gone now.

You make twice I make and say you owe $4700. Ok, I make half what you make and paid $2700 in taxes. So about half of what you owe...

 

[Virgderon]

Whoa. I think what OP might have meant is that she inherited money, once, and did not take out enough to pay the taxes. I also think that the comments about the military folks not having to pay taxes came out of an angry place.

Since I owe about 7k this year, and cannot claim a loss on the house (that I rent out because I could not sell it) I am LOSING MONEY on, I do understand that frustration.

One of my best friends owes 30k because she did not know how to manage her tax implications when her DH died.

Give the OP a break folks. There will be some frustrated people on here this week when they figure out their taxes. Things will pop into your mind when you are upset.

Once on TripAdvisor I complained about the raw hamburger in Paris- lightheartedly, I might add. About 20 pages of posts later beating me up for that comment ensured I would never post there again.