taxes
FOR FREE!!!! I hate when people gloat about getting a huge tax check because 95% of the time they overpaid the government and gave them a free loan. Sometimes the Child credit adds up to a bunch though so I cant harp on those guys.
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From: Fort Worth / Crowley / Burleson, Texas
"AMT" = the Alternative Minimum Tax.
Was created in the 1960's that would eliminate alot of the itemized deductions for a certain income group (1040 Schedule A). Well, in the 60's, that income group was high $50k's to $100k's.
The problem is, that Congress NEVER ADJUSTED THE AMT TAX to cover inflation.
So, that SAME amount is now required to pay AMT. That being said, nowadays $50k - $100k income bracket is barely making a living because of the increase of cost of living. Now 40 years later.
This year, I am in that income bracket for the first time,basically, with my house and other itemized deductions that I was eligible for last year which SAVED my ***, I might not get this tax year. I setup a separate savings account just in case.
However, at the end of 2007, Congress repealed it at the LAST minute saving my ***. But because they left it SOOOOO late, now my return probably won't get processed until March.
But I really don't care, because I shouldn't get much back if any. Depends on how much my wife made that is working full time for the 1st time since we've been married (now going on 4 years). I had her fill out her W4 claiming 0 and single JUST in case.
For you single folk claiming 0, probably should be claiming 1. But if you own a house and single, I'd claim 2 just to keep even because the house is a "Tax shelter" no pun intended.
I'm not a tax expert, and I do my own returns but I do alot of research. My returns are "Easy" but people that have 401(k)'s and HSA's your on your own!!!
Peace!
Was created in the 1960's that would eliminate alot of the itemized deductions for a certain income group (1040 Schedule A). Well, in the 60's, that income group was high $50k's to $100k's.
The problem is, that Congress NEVER ADJUSTED THE AMT TAX to cover inflation.
So, that SAME amount is now required to pay AMT. That being said, nowadays $50k - $100k income bracket is barely making a living because of the increase of cost of living. Now 40 years later.
This year, I am in that income bracket for the first time,basically, with my house and other itemized deductions that I was eligible for last year which SAVED my ***, I might not get this tax year. I setup a separate savings account just in case.
However, at the end of 2007, Congress repealed it at the LAST minute saving my ***. But because they left it SOOOOO late, now my return probably won't get processed until March.
But I really don't care, because I shouldn't get much back if any. Depends on how much my wife made that is working full time for the 1st time since we've been married (now going on 4 years). I had her fill out her W4 claiming 0 and single JUST in case.
For you single folk claiming 0, probably should be claiming 1. But if you own a house and single, I'd claim 2 just to keep even because the house is a "Tax shelter" no pun intended.
I'm not a tax expert, and I do my own returns but I do alot of research. My returns are "Easy" but people that have 401(k)'s and HSA's your on your own!!!
Peace!
