Federal Taxes

[Ronson]

Just did my taxes. Pretty much the same as last year ($40 less refund than last year).

My wife doesn't want to even look at it until March. But it seems the discrepancy isn't as widespread as I suspected.

[Sparko]

My wife doesn't want to even look at it until March. But it seems the discrepancy isn't as widespread as I suspected.

Yeah my refund varies a bit from year to year anyway. And I got a raise last year that might have changed the amount of my taxes I owed. But I still got a refund, and it was pretty close to last years.

[Ronson]

Yeah my refund varies a bit from year to year anyway. And I got a raise last year that might have changed the amount of my taxes I owed. But I still got a refund, and it was pretty close to last years.

My wife thinks we're going to owe the feds about $1400, but I think it will be at least twice that because not enough was taken out of my 401K either. A double whammy. We'll survive, but it's going to sting.

My brother says he will owe the feds about 50K. He makes a lot more money than me.

[Sparko]

My wife thinks we're going to owe the feds about $1400, but I think it will be at least twice that because not enough was taken out of my 401K either. A double whammy. We'll survive, but it's going to sting.

My brother says he will owe the feds about 50K. He makes a lot more money than me.

Just increase your debt ceiling and borrow more money!

[Cow Poke]

Just increase your debt ceiling and borrow more money!

No, no, no..... just PRINT as much money as you want!

[Sparko]

No, no, no..... just PRINT as much money as you want!

Print a 1 Trillion dollar coin!

[rogue06]

I never let them "take out taxes" from my income -- I do an estimate, and put that money in savings each month.

When they do payroll deductions, they're basically using your money totally interest-free, then applying it to your taxes due.
I'd far rather be earning interest on that money (currently 3.9%) and "pay in" at the end of the year, rather than get a "refund" of my own money.

It's deliberate. They realize that folks would rebel if they were presented a bill at the end of the year.

Further, many people simply could not fork over a couple months pay since they spent it.

[rogue06]

My wife likes to do it this way. I prefer to estimate to where it will come out close to zero as possible at the end of the year.

That's typically what I do. Generally I either owe or get back a couple hundred dollars.

[Mountain Man]

My wife thinks we're going to owe the feds about $1400, but I think it will be at least twice that because not enough was taken out of my 401K either. A double whammy. We'll survive, but it's going to sting.

My brother says he will owe the feds about 50K. He makes a lot more money than me.

Your brother sounds suspiciously like one of those rich people who isn't paying his "fair share"!

(Of course the problem with the "fair share" rhetoric is that exactly what constitutes a fair share is never specified.)

[rogue06]

Your brother sounds suspiciously like one of those rich people who isn't paying his "fair share"!

(Of course the problem with the "fair share" rhetoric is that exactly what constitutes a fair share is never specified.)

Several years ago, John Stossel asked Al Sharpton what he thought the percent of income tax should the richest 1% have to pay since he's one who regularly complains about the rich not paying their "fair share" (while owing several million dollars in back taxes that he'll never have to pay because that would be racist).

Sharpton thought about it for a few moments and replied that the richest 1% should pay 15% of the taxes collected blissfully unaware that at the time (2004) that they paid more than twice that -- 34%. And that number has grown since then. Today, they earn 22.2% of total AGI yet pay 42.3% of all federal income taxes.

[Ronson]

Just did my taxes. Pretty much the same as last year ($40 less refund than last year).

OK, we just did ours. We only owe the feds $643. WHEW! But we owe Missouri $800-something. Yuck.

[Sparko]

OK, we just did ours. We only owe the feds $643. WHEW! But we owe Missouri $800-something. Yuck.

So is that good? Do you have like a tax savings account to save up for taxes?

[Ronson]

So is that good? Do you have like a tax savings account to save up for taxes?

It's good because I was expecting to owe several thousand. Fortunately I paid taxes on my 401K.

Yeah, we can pay it. It will mean a few fewer expensive meals out.

[Cow Poke]

Wait, WHAT?!?!?! Mortgage Interest isn't deductible for 2022?!/!?!?

[Ronson]

Wait, WHAT?!?!?! Mortgage Interest isn't deductible for 2022?!/!?!?

I hadn't heard that. We haven't paid much in interest for the past couple of years so we haven't declared it. But this will be horrific for young first-time buyers with these current interest rates.