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Federal Taxes

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  • #16
    Originally posted by Cow Poke View Post

    Nope - fully employed - not quite ready for retirement yet.

    My biggest challenge is that, when I signed up for Social Security, I didn't have them do "withholding", but that's OK - I just put that money in savings every month and pay up in March.
    I am still trying to figure out my retirement (I retire in 4 or 5 years) I am trying to figure out a way to not have my SS taxed. I have some ROTH IRA and some regular IRA savings. The Roth IRA isn't taxed so I need to figure out how to do a combination of SS, Roth and Non Roth, so I don't go over the SS limit ($25,000) that ends up taxing it.

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    • #17
      Originally posted by Cow Poke View Post
      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.
      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.

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      • #18
        Originally posted by Sparko View Post
        CP I thought you were retired? And do they even tax your police pension?
        My brother is retired and he is taxed. Feds will tax any income.

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        • #19
          I hope to retire in two years, although it will probably be a couple years longer than that. My biggest obstacle is I still have a mortgage. I need to get this behemoth of a house sold and buy a bungalow outright, then it will be smooth sailing.

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          • #20
            Originally posted by Ronson View Post

            My brother is retired and he is taxed. Feds will tax any income.
            That's why I put all of my 401K contributions in a Roth fund. Unfortunately the company's matching contributions and profit sharing go into a regular taxable 401K. So I have a mix.

            But I thought since CP was a retired cop, maybe his cop pension was tax free. And maybe his pastor salary since churches are 501c3?

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            • #21
              Originally posted by Cow Poke View Post

              An EGGcellent point ---- if average citizens were required to pay quarterly - not from "withholdings", there would be FAR MORE uproar about the spending by "our government" like a whole navy of drunken sailors.

              It is a bit stunning - however, I have the satisfaction of knowing that I've earned interest along the way - something the tax system will collect, but never pay.


              Definition of "interest" - them what knows what it is collect it, them what don't understand it pays it.
              I think the paycheck withholdings are used partly to hide just how much we're really paying in taxes, but mostly because most people simply don't have the financial means and budgeting discipline to pay it all at once, and the government wants to be sure it gets its money.
              Some may call me foolish, and some may call me odd
              But I'd rather be a fool in the eyes of man
              Than a fool in the eyes of God


              From "Fools Gold" by Petra

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              • #22
                Didn't realize so many of you are that close to retirement. I still have a good 20 years before I will be considered "retirement age".
                Some may call me foolish, and some may call me odd
                But I'd rather be a fool in the eyes of man
                Than a fool in the eyes of God


                From "Fools Gold" by Petra

                Comment


                • #23
                  Originally posted by Mountain Man View Post
                  Didn't realize so many of you are that close to retirement. I still have a good 20 years before I will be considered "retirement age".
                  Just look at how gray my whiskers are!

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                  • #24
                    Originally posted by Mountain Man View Post
                    Didn't realize so many of you are that close to retirement. I still have a good 20 years before I will be considered "retirement age".
                    Boomers, the lot of them .


                    Originally posted by Mountain Man View Post

                    I think the paycheck withholdings are used partly to hide just how much we're really paying in taxes, but mostly because most people simply don't have the financial means and budgeting discipline to pay it all at once, and the government wants to be sure it gets its money.

                    Imo, it's just easier to overpay and then get a refund. A year's worth of interest is negligible on the difference or you'd just have to file the 1099 to pay on the interest.
                    Last edited by Diogenes; 02-06-2023, 06:13 PM.
                    P1) If , then I win.

                    P2)

                    C) I win.

                    Comment


                    • #25
                      Originally posted by Sparko View Post

                      That's why I put all of my 401K contributions in a Roth fund. Unfortunately the company's matching contributions and profit sharing go into a regular taxable 401K. So I have a mix.
                      Roth 401ks are the greatest thing since fire.
                      P1) If , then I win.

                      P2)

                      C) I win.

                      Comment


                      • #26
                        Originally posted by Mountain Man View Post

                        I think the paycheck withholdings are used partly to hide just how much we're really paying in taxes, but mostly because most people simply don't have the financial means and budgeting discipline to pay it all at once, and the government wants to be sure it gets its money.
                        there's an internet meme something like....

                        I'm so glad they taught me about parallelograms instead of doing taxes -- it comes in so handy on parallelogram day!
                        The first to state his case seems right until another comes and cross-examines him.

                        Comment


                        • #27
                          Originally posted by Sparko View Post

                          That's why I put all of my 401K contributions in a Roth fund. Unfortunately the company's matching contributions and profit sharing go into a regular taxable 401K. So I have a mix.

                          But I thought since CP was a retired cop, maybe his cop pension was tax free. And maybe his pastor salary since churches are 501c3?
                          My church salary is taxable except for the housing allowance, and I use the maximum amount of housing allowance the law allows.
                          All my current retirement money goes into a 403(b), and when I start drawing that, I can even designate a large portion of that as housing allowance, which is non-taxable.

                          My police retirement was rolled into my 403(b), as was my 401(k) from my gas compression days.
                          The first to state his case seems right until another comes and cross-examines him.

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                          • #28
                            Hey! I want a non-taxable housing allowance too!

                            Remember the days when we could write off the interest paid on a car loan? I understand that also applied to credit cards, but that was before my time.

                            Comment


                            • #29
                              Originally posted by Ronson View Post
                              Hey! I want a non-taxable housing allowance too!

                              Remember the days when we could write off the interest paid on a car loan? I understand that also applied to credit cards, but that was before my time.
                              Yeah, the housing allowance is a constant target of the left in Congress, who have threatened to do away with it because it's "double dipping".

                              I can carve out a non-taxable segment of my salary, as long as it meets certain criteria (actual expenses, fair market value, etc) so I'm not taxed on that, but I also get to deduct my actual mortgage interest and property taxes and so on.... It's about the only way some smaller churches can actually afford to pay a pastor.
                              The first to state his case seems right until another comes and cross-examines him.

                              Comment


                              • #30
                                Originally posted by Cow Poke View Post

                                there's an internet meme something like....

                                I'm so glad they taught me about parallelograms instead of doing taxes -- it comes in so handy on parallelogram day!
                                My 15-year old daughter often complains that she doesn't learn anything truly useful in school. I can't entirely disagree.
                                Some may call me foolish, and some may call me odd
                                But I'd rather be a fool in the eyes of man
                                Than a fool in the eyes of God


                                From "Fools Gold" by Petra

                                Comment

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