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-   -   Taxes! Yay! (http://www.wakeworld.com/forum/showthread.php?t=785862)

smitty1258 02-10-2011 5:42 AM

Taxes! Yay!
 
well its once again time for me to repay my loan I took all year long to the government. Tax return/rebates are for suckers.

I dont need any specific help yet, just asking generally what the rest of the self employed people here are using for write-offs this year? I am switching CPAs this year because we did not feel our last one really was looking for those extra deductions for us and I want to make sure I know about some of the odd ball/ overlooked deductions.

jarrod 02-10-2011 8:23 AM

"Tax return/rebates are for suckers. "

That's the only way I can save money!

wake77 02-10-2011 9:56 AM

I don't understand your rationale "tax return/rebates are for suckers."

If you overpaid in Federal Income Tax over the course of the year, you receive a refund. If you underpaid, you send the IRS a check. Which ever course you choose to take, taking the other course hardly constitutes one being a "sucker".

helinut 02-10-2011 10:02 AM

Problem is I can't claim enough exemptions to NOT get a refund. It's a good problem to have btw... Government paid me this year...

deltahoosier 02-10-2011 11:44 AM

The government did not pay you. You gave the government a loan. It was your money.

phatboypimp 02-10-2011 2:45 PM

Although sucker is not the best term to describe it, it is a bad move financially as you are giving the government an interest free loan. Much better to "owe" at the end of the year than to receive a return, but for many people (not sure if J-Rod is joking or serious) who may not be great at saving to be "forced" into putting a little money aside. I am always amazed how many people "rely" on that money and have it spent months before they receive it.

cadunkle 02-10-2011 4:54 PM

Yep, it's an interest free loan to the government. Those same folks who take your money at every opportunity. At the least you could put that same money in a high interest savings account and be ahead.

In my case I overpaid a lot this year and last due to school. Getting large refund back, but I could have put that money toward my student loans. So while I was giving the government an interest free loan I was paying interest on my loans. That's where the sucker part comes in.

ttrigo 02-10-2011 5:01 PM

this is my first year in a long time we are getting a return. however, it was necessary this time around. with me not working, we sold quite a bit of stock to help pay property taxes, and to pay off our equity line. as much as I hate loaning our govt anything, it is nice to get a chunk of change back this time around.

smitty1258 02-10-2011 8:04 PM

Giving the government my money, for them to "hold" for me throughout the year makes no sense.

I have heard people tell me that its the only way they can save money, and I always tell them to get an automatic deduction on there pay into a savings that they WONT use, at another bank that is not there primary bank.

I like to find other ways to take the money I would pay quarterly to the IRS and invest and grow that money in various ways.


Anyway, I was excited to see so many replies, but none have any deduction advice :(

fly135 02-11-2011 6:58 AM

Maybe some people would rather the govt hold their money, than their wife.

brettw 02-11-2011 7:39 AM

I used to use the 'interest free loan' to the government argument, but how much interest are you really losing? It's probably not much depending on your investments and if you'd really invest that little bit of extra cash each paycheck, which most don't. For many, it's better just paying a little extra to make sure there's nothing owed at the end of the year and then to also have that little extra chunk of change at tax time.

As for deductions, I guess all the standard ones. Some that I might have forgotten before having a tax guy or before using the tax software available now:

-vehicle license fees
-charity - ($500 in non $ donations) $ after that. (as for charity, if you're doing alright, instead of selling some of your old furniture, tvs, etc. - just give it to charity like the Salvation Army next time. It's less hassle and helps other people out. You also get that tax deduction.
-school supplies for teachers up to a certain amount
-mileage for any self employed folks
-If you have rentals, milk them for every dime they're worth with things like mileage to visit them to every little thing you buy for them. Don't forget advertising for when you listed the place in the paper or the VRBO fee. Even if you make too much to take the deduction each year, those deductions will pile up to be taken off capital gains when you/if you sell the place
-child care

I can't think of anything else too easily forgotten. Most tax software and a decent tax person shouldn't miss much. If you use a tax guy and need a new one, I'd say try yelp to find someone with good reviews.

eubanks01 02-11-2011 7:55 AM

@ John - Hahahahaha! That's funny Dude. Great point.

innov8 02-11-2011 10:11 AM

Quote:

Originally Posted by cadunkle (Post 1659537)
Yep, it's an interest free loan to the government. Those same folks who take your money at every opportunity. At the least you could put that same money in a high interest savings account and be ahead.

In my case I overpaid a lot this year and last due to school. Getting large refund back, but I could have put that money toward my student loans. So while I was giving the government an interest free loan I was paying interest on my loans. That's where the sucker part comes in.

ummm, no such thing as a high interest saving account any more, hahaha

wake77 02-11-2011 12:53 PM

Cory, name the "high interest savings account" one can put that money.

I feel much better giving the govt. an "interest-free loan" for a year, than having to write them a check in April.

k9fxr 02-13-2011 10:27 AM

I will volunteer to hold anyones money until they need it in April

cadunkle 02-13-2011 11:01 AM

Okay, so these days you're getting a pittance, 1% - 1.5% at best. Not exactly high interest, but why give the government an interest free loan when you could be making money on it? Even if you couldn't make anything on it... Why give the government an interest free loan?

jcfox00 02-13-2011 4:13 PM

This topic came up in my online class and completely agree with Cory. Here is part of my opposing view section I posted:

On the devils advocate side of things an article I found for the opposing view of my own is according to Mangla, "One study found that people who get bonuses tend to save more of the money than those who get the same amount in bits over time." This is because people tend to save a large chunk of their refund if it is from $2500 to $3000 more than if they were to receive a couple extra dollars each paycheck. For people that are not good with budgeting their money I would suggest this would actually be beneficial to this particular individual. If they were good at budgeting their money they would have a savings expense section on their budget.



Mangla, Ismat Sarah, S. I. ((2009), April). Should you really adjust your withholding? . Money, 31(4), 30-30.


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