Tax prep

[HouseofWool]

DD - can you clarify? I realize that that when you are in the bottom 10% it is really hard to squeeze any more money out of the budget.

But, a flat tax without the numerous exemptions would certainly make things easier. And business need to have a flat tax as well. I am all for taxes being a use tax if I get to keep a bigger portion of my income.

[poky]

You might be surprised how our current tax system disproportionally taxes those in the lowest socioeconomic group. Unfortunately, flat tax rates exacerbate the problem.

This. Income tax isn't the only tax, and most of the rest of them are pretty un-progessive, in practice.

[diggitydot]

Tax prep

This. Income tax isn't the only tax, and most of the rest of them are pretty un-progessive, in practice.

Yup, this.

This tax study lays it out pretty succinctly:

http://www.itepnet.org/whopays.htm

Our current federal tax system is designed to incentivize specific behaviors with tax breaks or rebates. Flat rates eliminate those incentives.

Also, flat taxes are usually based on a household's consumption (not income), which disproportionally impacts lower income households.

[HouseofWool]

Thanks for the link.

[spotty_dog]

If you taxed my family on 15% of what we spend, you'd cut our taxes in fourth. But if you taxed us in 2003 at that rate, you'd increase our bill by about $4500 -- that we totally would not have had at that time.

I'd rather pay now and spare folks in our previous position.

[bobk]

Yup, this.

This tax study lays it out pretty succinctly:

http://www.itepnet.org/whopays.htm

Our current federal tax system is designed to incentivize specific behaviors with tax breaks or rebates. Flat rates eliminate those incentives.

Also, flat taxes are usually based on a household's consumption (not income), which disproportionally impacts lower income households.

That's an interesting way of looking at it. I wonder if there's a similar analysis on Federal taxation alone. I think most consumption and excise taxes are applied at the state and local levels. About those various incentives, do you think we'd be better off without them? Why should married homeowners with children get all the breaks? A flat tax strikes me as more fair and democratic.

[diggitydot]

Tax prep

That's an interesting way of looking at it. I wonder if there's a similar analysis on Federal taxation alone. I think most consumption and excise taxes are applied at the state and local levels. About those various incentives, do you think we'd be better off without them? Why should married homeowners with children get all the breaks? A flat tax strikes me as more fair and democratic.

If a flat tax were based simply in income, it might be, but they're usually like a sales tax. Sales taxes disproportionately impact lower income households.

I don't know that we'd be better off with without those federal tax breaks. I can see how some are helpful and some are harmful.

[MsSassyBaskets]

Still waiting on my 1099-div, but when that comes I'll get DH to do them in TurboTax. With only one income and both of us being students (lifetime learning credit!), we will get a refund that will probably be big enough to pay off my last undergrad loan. Then we will be "debt free" ( hahahahaha) until my grad loans and his med loans go into repayment.

[spaz]

Ok, I've gotten everything done with the exception of our farm expenses. I'm doing that today and putting it on hubby's desk. He will put all of the numbers into the form our accountant gave us and see if I missed anything...

[houseelf]

Have you guys received all your investment broker statements? They're due to be sent out by Jan 31, right?

[SuzySunshine]

TD Ameritrade says they send theirs out on the 15th. We haven't gotten them yet.

[spaz]

You can sometimes go online and print them!!!! In fact, since on some of our accounts that we don't get paper statements, it is the only way to get them. So check online!

[MsSassyBaskets]

Mine is available online but not until the 15th. Investment brokers/firms are not under the same timeframe as employers for getting forms out, I believe they all have until 2/15.

[DrBandMe]

I filed mine yesterday - I use turbo tax still and I feel like every year I end the process saying "yeah, that looks about right. I guess. Maybe. Hmm. Oh well. *submit*"

I should probably break that habit one of these years soon.

I should also pay attention to the local taxes soon, too. Otherwise, I'll forget like I usually do until April 15th.

[alison]

We use an accountant, but still have a 20-page questionnaire that he sends us each tax year AND we still go through the forms he completes for us before he submits them. He made a huge error last year that my dh randomly caught. So check your taxes even if you have a professional!!! No one cares about your money as much as you do.

We bought a house last year, dh is self-employed, and our taxes are just getting more and more complicated each year.