So its that time of the year...TAX TIME!!!! Yayyyy.

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  • thegoat30
    Something clever
    • May 2003
    • 240

    #46
    Re: So its that time of the year...TAX TIME!!!! Yayyyy.

    married - filing jointly:
    0 - 15,650 10%
    15,650 - 63,700 15%
    63,700 - 128,500 25%
    128,500 - 195,850 28%
    195,850 - 349,700 33%
    349,700 - …. 35%

    just to complete the brackets...

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    • nymets3000
      Rookie
      • Nov 2005
      • 349

      #47
      Re: So its that time of the year...TAX TIME!!!! Yayyyy.

      I should be getting money back. Not sure how much though.

      Comment

      • mjb2124
        Hall Of Fame
        • Aug 2002
        • 13649

        #48
        Re: So its that time of the year...TAX TIME!!!! Yayyyy.

        Originally posted by Trevytrev11
        Unless you are cashing out a Roth IRA early, you should not have to pay any additional taxes since your contributions to the Roth IRA are already taxed. The whole benefit of the Roth IRA is that you pay the tax now on the your contribution and pay no taxes down the road when you withdraw (assuming you wait until you are 59 1/2).

        The possible way you are losing out is that you just can't deduct the contribution that you could with a traditional IRA, but that is fine because you've already paying taxes on $4,000 instead of paying taxes on say $10-$15,000 down the road like you would with a traditional IRA.
        What I'm doing is transferring a 401k from my former employer to a Roth IRA. I left the company and am starting a new job. So I have to pay taxes on the Roth this year.

        Comment

        • 23
          yellow
          • Sep 2002
          • 66469

          #49
          Re: So its that time of the year...TAX TIME!!!! Yayyyy.

          Originally posted by Trevytrev11
          It won't/shoudln't impact how you file. In a few month's, you'll just receive a check in the mail ($600 if your single, $1,200 if your married + $300 for each child). You may get less if you make more, though.

          File like you normally would and wait for your check.
          I'm speaking of the next time you file. Will it affect your 09 tax returns.

          Comment

          • jdros13
            MVP
            • Oct 2004
            • 1255

            #50
            Re: So its that time of the year...TAX TIME!!!! Yayyyy.

            Originally posted by ChiefIllinimac
            But it's only the excess money that puts you into the higher tax bracket that is taxed at that high rate. Not all of your money is taxed at the highest rate. So, yes, this exists, but it's not nearly as bad as it sounds.
            My only advice is if it is your first year married...do your return early and figure out the best way to file. If you are both in the same tax bracket and you won't go up a bracket it shouldn't make much of a difference and good for you. If you suddenly owe money and are used to getting it back though, it's better to know now than to be surprised in April.

            We owed our first year married, after typically getting money back, and it didn't matter which way I filed (jointly or seperate). This isn't uncommon for young people early in their careers.

            Just do the math early. It may not affect you, but it does affect some.
            Goal Line Blitz

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            • jdros13
              MVP
              • Oct 2004
              • 1255

              #51
              Re: So its that time of the year...TAX TIME!!!! Yayyyy.

              Originally posted by Trevytrev11
              It won't/shoudln't impact how you file. In a few month's, you'll just receive a check in the mail ($600 if your single, $1,200 if your married + $300 for each child). You may get less if you make more, though.

              File like you normally would and wait for your check.
              This is going to be very nice by the way...never turn down money I say....I'm sure I can find a use for $1800.
              Goal Line Blitz

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              • Chief Illinimac
                Gimme the Oscar, Friendo.
                • Dec 2004
                • 2365

                #52
                Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                Originally posted by jdros13
                My only advice is if it is your first year married...do your return early and figure out the best way to file. If you are both in the same tax bracket and you won't go up a bracket it shouldn't make much of a difference and good for you. If you suddenly owe money and are used to getting it back though, it's better to know now than to be surprised in April.

                We owed our first year married, after typically getting money back, and it didn't matter which way I filed (jointly or seperate). This isn't uncommon for young people early in their careers.

                Just do the math early. It may not affect you, but it does affect some.
                I'm not sure what you're getting at here, I was just trying to explain how taxes are calculated from taxable income. Someone went into much more detail, and explained it very well.

                It depends on the exact situation, but I'll say right now: it RARELY, and I mean RARELY is better to report married filing separately. If anyone is wondering, you should probably ALWAYS file jointly. I can't think of a single advantage to filing separately.
                Listen to some of my covers:
                http://profile.ultimate-guitar.com/chiefillinimac/

                Currently:
                Asilos Magdalena by The Mars Volta
                LOST Theme
                The Rain Song by Led Zeppelin
                Rage Against the Machine Acoustic Medley

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                • Heelfan71
                  Hall Of Fame
                  • Jul 2002
                  • 19940

                  #53
                  Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                  any info on the refund check. I would normally get back $1800 (married, wife and kid) but if you make over a certain amount it could be less. What is that amount ? Any concrete numbers yet ??
                  My Fan Page http://theusualgamer.net/MyFanPage_Heelfan71.aspx
                  Heelfans Blog http://www.operationsports.com/Heelfan71/blog/

                  Comment

                  • Heelfan71
                    Hall Of Fame
                    • Jul 2002
                    • 19940

                    #54
                    Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                    oops, I think that is $1500 for me.
                    My Fan Page http://theusualgamer.net/MyFanPage_Heelfan71.aspx
                    Heelfans Blog http://www.operationsports.com/Heelfan71/blog/

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                    • jdros13
                      MVP
                      • Oct 2004
                      • 1255

                      #55
                      Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                      Originally posted by Heelfan71
                      any info on the refund check. I would normally get back $1800 (married, wife and kid) but if you make over a certain amount it could be less. What is that amount ? Any concrete numbers yet ??
                      Overall, 117 million families would receive rebate checks, including 35 million with earnings too low to have qualified under an earlier Bush proposal that limited checks to income tax payers. Rebates would be limited, however, to single taxpayers with adjusted gross income up to $75,000 -- up to $150,000 for couples. Above that, the benefit would phase out until hitting zero for individuals with adjusted income of about $87,000, $174,000 for couples.

                      Washington Post article
                      Goal Line Blitz

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                      • Heelfan71
                        Hall Of Fame
                        • Jul 2002
                        • 19940

                        #56
                        Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                        thanks. unfortuneatly my refund will probably go to pay taxes I owe this year. But it will definitely help, can't complain.
                        My Fan Page http://theusualgamer.net/MyFanPage_Heelfan71.aspx
                        Heelfans Blog http://www.operationsports.com/Heelfan71/blog/

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                        • jdros13
                          MVP
                          • Oct 2004
                          • 1255

                          #57
                          Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                          Originally posted by ChiefIllinimac
                          I'm not sure what you're getting at here, I was just trying to explain how taxes are calculated from taxable income. Someone went into much more detail, and explained it very well.

                          It depends on the exact situation, but I'll say right now: it RARELY, and I mean RARELY is better to report married filing separately. If anyone is wondering, you should probably ALWAYS file jointly. I can't think of a single advantage to filing separately.
                          I wasn't disputing you...other than the fact that even if it isn't a ton of money that was taxed at the wrong rate, it is still money you are going to owe. If you aren't ready for that, it can be a big surprise...probably shouldn't have quoted.

                          You are correct...it rarely is better to file seperate.
                          Last edited by jdros13; 01-25-2008, 12:08 PM.
                          Goal Line Blitz

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                          • 23
                            yellow
                            • Sep 2002
                            • 66469

                            #58
                            Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                            Originally posted by Heelfan71
                            thanks. unfortuneatly my refund will probably go to pay taxes I owe this year. But it will definitely help, can't complain.
                            That sounds like there is a good chance you guys make a pretty good salary.

                            It's better to have more money during the year than just a one time deal

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                            • Heelfan71
                              Hall Of Fame
                              • Jul 2002
                              • 19940

                              #59
                              Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                              Originally posted by KDRE_OS
                              That sounds like there is a good chance you guys make a pretty good salary.

                              It's better to have more money during the year than just a one time deal
                              my and my wife both work, but yeah I would like to get it to where we break even (it was that way for a few years) but I have to set a side a little here and there for taxes now.
                              My Fan Page http://theusualgamer.net/MyFanPage_Heelfan71.aspx
                              Heelfans Blog http://www.operationsports.com/Heelfan71/blog/

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                              • 23
                                yellow
                                • Sep 2002
                                • 66469

                                #60
                                Re: So its that time of the year...TAX TIME!!!! Yayyyy.

                                Originally posted by Heelfan71
                                my and my wife both work, but yeah I would like to get it to where we break even (it was that way for a few years) but I have to set a side a little here and there for taxes now.

                                It's a catch-22 on either side. There are people who don't owe but have more difficulties financially throughout the year.

                                Likening it to our company bonus, it's better if they would give us a better raise than a couple of thousand, then take half of that in taxes out which you don't get back anyhow.

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