Tax Refund
03-10-2006 | 08:44 AM
#13
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Joined: Jun 2002
Posts: 5,550
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Originally Posted by JSWhaler,Mar 10 2006, 10:35 AM
So last night we finalized out taxes and got to see what kind of money we would get back from taxes. This stinks cause apparently we just barely made a higher tax bracket (just over $1k more) so we get less back (1/16 of what we paid throughout the year) federal. In fact we owe money to CT for state taxes. I just don't understand anymore.
Federal tax rates are progressive. It means the tax rate in the higher tax bracket is only applicable to that $1,000. Your old tax rates are still applicable to the rest of your taxable income.
If I were you, I would double check the number of exemptions, your income adjustments and the itemized deductions (if you itemized) and compare them to your prior year's Fed tax return.
03-10-2006 | 09:27 AM
#14
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Joined: Dec 2001
Posts: 8,058
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From: Manchvegas, NH
Originally Posted by Bass,Mar 10 2006, 11:39 AM
how is that possable?? you have a "cash business"
if i were i'd be taking a lose on everything (not just on my jobs
)
if i were i'd be taking a lose on everything (not just on my jobs
)
03-10-2006 | 10:19 AM
#15
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Joined: Mar 2004
Posts: 7,111
Likes: 4
From: Mass
Originally Posted by The Hoth,Mar 10 2006, 11:44 AM
Without looking at your tax return, I'd guess the $1,000 and higher tax bracket things did not cause you to have a low federal tax refund.
Federal tax rates are progressive. It means the tax rate in the higher tax bracket is only applicable to that $1,000. Your old tax rates are still applicable to the rest of your taxable income.
If I were you, I would double check the number of exemptions, your income adjustments and the itemized deductions (if you itemized) and compare them to your prior year's Fed tax return.
Federal tax rates are progressive. It means the tax rate in the higher tax bracket is only applicable to that $1,000. Your old tax rates are still applicable to the rest of your taxable income.
If I were you, I would double check the number of exemptions, your income adjustments and the itemized deductions (if you itemized) and compare them to your prior year's Fed tax return.
Thomas, you stated that perfectly.....of course you ARE an accountant.And I keep saying.....getting money back means YOU PAID TOO MUCH to begin with.
My taxes are due April 15.....and that when they'll get the rest of their money.
03-10-2006 | 10:20 AM
#16
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Joined: Oct 2004
Posts: 313
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From: Connecticut, USA
Originally Posted by Lainey8484,Mar 10 2006, 08:18 AM
In about 10-15 years (when you are Vintage +), you will have both a remodeled kitchen and an S. These things take time.
(it took 20 years of home hownership to get to the kitchen remodeling stage, and 18 years to get rid of the PINK bathroom fixtures). After 25 years of home ownership, things finally start to fall into place. I just got my S last year, so it's not like I was ever able to buy a house and a sports car at the same time. The first 10-15 years of owning a home was tight, but eventually you start to catch up. Discipline and patience.
then have some kids - another write off
03-10-2006 | 10:24 AM
#19
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Joined: Mar 2004
Posts: 7,111
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From: Mass
Originally Posted by Twiztid,Mar 10 2006, 12:27 PM
That doesn't help the business grow , If I am at a lose that means I have no buying power .
I know plenty of small business owners that play that game, I think it just hurts them in the end.
