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Thread: Question about income tax

  1. #1

    Question about income tax

    I heard that when the Bush tax cuts reset, that a family of 4 making 40,000 dollars will pay an extra 2 grand in taxes annually. Is this true?

  2. #2
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    No.

  3. #3
    [QUOTE=PlumberKhan;2410083]No.[/QUOTE]

    Like you would know.

  4. #4
    I think it's more like a $60,000 income will pay an additional $1,800. (Because we clearly do not pay enough taxes as it stands today.)

  5. #5
    [QUOTE=sackdance;2410103]I think it's more like a $60,000 income will pay an additional $1,800. (Because we clearly do not pay enough taxes as it stands today.)[/QUOTE]

    Thank you. 60,000 bucks is peanuts in the NY metro area. F the democrats.

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    [QUOTE=Company_Man;2410120]Thank you. 60,000 bucks is peanuts in the NY metro area. F the democrats.[/QUOTE]

    If you have 2 or 3 kids who someday want to go to college, and you want to retire before the age of 137, 60,000 isn't alot of money in most areas. But I feel good knowing the US Gov. will spend my $1800 on a hammer or something else that it could but for $7.49 at Wal Mart.

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    [QUOTE=Company_Man;2410079]I heard that when the Bush tax cuts reset, that a family of 4 making 40,000 dollars will pay an extra 2 grand in taxes annually. Is this true?[/QUOTE]

    First off, taxes are not cookie cutter templates that are true or false. It ALWAYS depends on your SPECIFIC and PERSONAL situation and living expenses.

    If you're a family of four (I assume You, Wife and 2 kids) making a COMBINED income of $40k, the tax cuts won't automatically trigger you paying MORE in taxes. It just doesn't work that way.

    If you make all your proper deductions (standard vs. itemized, child credits and phase-outs, dependent deductions, mortgage payments, gift exemptions, etc.) you should have a minimal tax to pay if your AGI STILL is $40k. All the more so IF you have a business.

    **** Forgot to add: The Tax cut is really a temporary band-aid to provide more liquidity (ie CASH) in the short term (thus why you hear talking about everyone getting at least $400 back through the cuts). All it is, is a stimulus to create MORE consumer spending which THIS ADMINISTRATION believes would stimulate the economy. IT Won't.
    Last edited by Gas2No99; 03-04-2008 at 11:24 AM.

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    [QUOTE=sackdance;2410103]I think it's more like a $60,000 income will pay an additional $1,800. (Because we clearly do not pay enough taxes as it stands today.)[/QUOTE]

    This is the biggest reservation I always have when I consider voting for a Democrat. At any level of government they just can't help raising taxes.

  9. #9
    [QUOTE=Gas2No99;2410141]First off, taxes are not cookie cutter templates that are true or false. It ALWAYS depends on your SPECIFIC and PERSONAL situation and living expenses.

    If you're a family of four (I assume You, Wife and 2 kids) making a COMBINED income of $40k, the tax cuts won't automatically trigger you paying MORE in taxes. It just doesn't work that way.

    If you make all your proper deductions (standard vs. itemized, child credits and phase-outs, dependent deductions, mortgage payments, gift exemptions, etc.) you should have a minimal tax to pay if your AGI STILL is $40k. All the more so IF you have a business.

    **** Forgot to add: The Tax cut is really a temporary band-aid to provide more liquidity (ie CASH) in the short term (thus why you hear talking about everyone getting at least $400 back through the cuts). All it is, is a stimulus to create MORE consumer spending which THIS ADMINISTRATION believes would stimulate the economy. IT Won't.[/QUOTE]


    I don't think a family of 4 in NJ or nY making 60 grand a year itemizes deductions.

  10. #10
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    [QUOTE=Company_Man;2410169]I don't think a family of 4 in NJ or nY making 60 grand a year itemizes deductions.[/QUOTE]

    You're right, the not-so bright ones don't.

    You [B]always[/B] should itemize and compare that to what the standard deduction is for your bracket to see which saves you more, that's the POINT of it. Some people never realize that and the government hopes you're too lazy to do so.

    What do you lose by doing that and comparing which saves you more money? It's different from year to year. You might have more expenses one year than the previous and it could work out in your benefit. If you're concerned about handing over more money to the government via taxes, that's one of the FIRST steps one does in proper financial due diligence. :rolleyes:

  11. #11
    [QUOTE=Gas2No99;2410183]You're right, the not-so bright ones don't.

    You [B]always[/B] should itemize and compare that to what the standard deduction is for your bracket to see which saves you more, that's the POINT of it. Some people never realize that and the government hopes you're too lazy to do so.

    What do you lose by doing that and comparing which saves you more money? It's different from year to year. You might have more expenses one year than the previous and it could work out in your benefit. If you're concerned about handing over more money to the government via taxes, that's one of the FIRST steps one does in proper financial due diligence. :rolleyes:[/QUOTE]

    By due dilligance do you mean take it to an accountant? why, so they can screw you out of 100 bucks and maybe you get an extra ten bucks back and a possible red flag with the IRS because he had to inflate expenses to get it over the standard deduction?

  12. #12
    [QUOTE=chirorob;2410125]If you have 2 or 3 kids who someday want to go to college, and you want to retire before the age of 137, 60,000 isn't alot of money in most areas. But I feel good knowing the US Gov. will spend my $1800 on a hammer or something else that it could but for $7.49 at Wal Mart.[/QUOTE]

    Now now, we all must pay "our fair share". :rolleyes:

  13. #13
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    I'm am an accountant. :D

    Just trying to help pal, but do what YOU think is best. Just merely trying to explain what you didn't get.

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    [QUOTE=Company_Man;2410120]Thank you. 60,000 bucks is peanuts in the NY metro area. F the democrats.[/QUOTE]

    Median Family Income for NYC is 58,700. Suburban counties are quite a bit higher...Westchester is a bit over 100,000, Rockland is 97,000 as is Nassau-Suffolk.

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    [QUOTE=Company_Man;2410215]By due dilligance do you mean take it to an accountant? why, so they can screw you out of 100 bucks and maybe you get an extra ten bucks back and a possible red flag with the IRS because he had to inflate expenses to get it over the standard deduction?[/QUOTE]

    youre absolutely right, why get screwed out of $100 when you can get free tax advice on a Jets board.

  16. #16
    [QUOTE=Company_Man;2410079]I heard that when the Bush tax cuts reset, that a family of 4 making 40,000 dollars will pay an extra 2 grand in taxes annually. Is this true?[/QUOTE]

    No.

  17. #17
    [QUOTE=Company_Man;2410215]By due dilligance do you mean take it to an accountant? why, so they can screw you out of 100 bucks and maybe you get an extra ten bucks back and a possible red flag with the IRS because he had to inflate expenses to get it over the standard deduction?[/QUOTE]

    I may be wrong but thought you could write off any fees you pay that helps you prepare your taxes..

    also just use turbo tax, it makes it very easy to compare itemized deductions and standard deduction...

    keep your receipts!!!

  18. #18
    [QUOTE=PlumberKhan;2410348]Median Family Income for NYC is 58,700. [/QUOTE]

    How many of those families are subsidized by the government?

    No family of four is living in NY metro area on 60 grand a year without going into debt.

  19. #19
    [QUOTE=Gas2No99;2410251]I'm am an accountant. :D

    Just trying to help pal, but do what YOU think is best. Just merely trying to explain what you didn't get.[/QUOTE]

    I have itemized, and it came to a lesser amount than the standard deduction.

  20. #20
    [QUOTE=Company_Man;2410391]How many of those families are subsidized by the government?

    No family of four is living in NY metro area on 60 grand a year without going into debt.[/QUOTE]


    right, but maybe the rest of the state brings down the avg a lot...

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