It wasn't really worth it. My check only went up by a few dollars, but the taxes that came out were more than 25%.
what are you gonna do with your tax refund?
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It wasn't really worth it. My check only went up by a few dollars, but the taxes that came out were more than 25%.
Probably wouldn't have helped anyway. I have to claim an extra $1700 in income for last year.
What a stupid rule. "We forgave this debt, so therefore it's extra taxable income." Can anyone explain how that makes any sense? I already paid taxes off my paycheck for that 1700 I didn't pay them, so I get taxed for it again?
What a stupid rule. "We forgave this debt, so therefore it's extra taxable income." Can anyone explain how that makes any sense? I already paid taxes off my paycheck for that 1700 I didn't pay them, so I get taxed for it again?
My setup almost works that way. I have my check deposited into several separate bank accounts so I basically don't see the money that goes towards bills... One account receives money for the mortgage, and payment is auto-deducted. Same for the car payment, it's on a separate account. Utilitiy bills on another account, etc. Then I have one account that I use for spending money... food, gas, extras, it's really the only account I ever see on a daily basis. So basically the bills are all paid automatically, and anything I have in my 'main' account is spendable.
Other than the auto-pays, I don't have easy access to spend any of the money in the other accounts so it also works as a sanity check... If I ever were to freak out and spend everything on my card, all the bills are still paid.
its called a forgiveness of debt. lets say you use a cc to buy things, then don't pay that money back and receive a forgiveness of debt. that is counted as income because you used the money and do not have to pay it back. you essentially got yourself an extra stream of income in the form of the items you bought
once it goes from loan to forgiveness of debt it counts as income to you. a loan isn't income because it has to be repaid, but once it doesn't have to be repaid then it counts as income.
the taxes you paid for that 1700 that you did not pay them has nothing to do with it. that was income and it taxed as income. you are not taxed on it again. you are taxed on the money you borrowed and did not repay.
next time talk to be before making any important financial decisions. there could be a number of explanations and it sounds like this isn't the complete picture.
Also, you want a small refund. If you have a large refund, it means you made a zero interest loan to the government last year. You gave extra money to the government on your income, and then they gave it back, but if you would have had it during the year, you could've invested it for a profit.
yea but there are people like me that would take that extra couple bucks on my paycheck and piss it away. ill give them in interest free loan and get my lump o cash back
well i was told i don't need the toothbrush... i received a nice bonus to go with my small, free govt loan. my perio work doesn't start for another 4 months so i bought new coilovers and rigid collars for the veloster. bought kristen something nice, put a chunk of it attached to the first monthly on the veloster. the rest im going to save for our anniversary trip and / or anything that comes up.
And you still owe that much from claiming only two?
My AGI was higher and I had about 30k in deductions. I claim 6 exemptions and still got $11,000 back. I don't understand how you owe anything while claiming only 2.
I bought $600 worth of brake pads for the race car.. lol.
Rest went into savings.
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deductions are different than rental expenses.
you guys are killing me...
you can never compare 2 people based on general numbers because the situations are totally different for each taxpayer.
there are so many other factors that are not being considered in this comparison.
you guys are killing me...
you can never compare 2 people based on general numbers because the situations are totally different for each taxpayer.
there are so many other factors that are not being considered in this comparison.
so what you're saying is the tax code is somewhat complicated?
Ooops, thought he owned his properties. Either way 40k in deductions is quite a bit, more than I did.
he does "own" them theoretically, or the bank owns them i assume.
the mortgage interest on the condos should appear on the schedule E for rental properties to offset any rental income, a deduction for rental, but not an itemized deduction per say. Sch E vs Sch A
unless the rentals already had a loss, which isn't deductible because of passive activity loss limitations, in which case he might have taken those things as itemized but that wouldn't necessarily be legal or proper and i don't want to know about it, if you know what i'm saying.
but it all depends on a lot of factors and it ultimately is between him and his tax preparer and the gov't.
the mortgage interest on the condos should appear on the schedule E for rental properties to offset any rental income, a deduction for rental, but not an itemized deduction per say. Sch E vs Sch A
unless the rentals already had a loss, which isn't deductible because of passive activity loss limitations, in which case he might have taken those things as itemized but that wouldn't necessarily be legal or proper and i don't want to know about it, if you know what i'm saying.
but it all depends on a lot of factors and it ultimately is between him and his tax preparer and the gov't.
oops.
