My Son Did His Taxes for the First Time. Rage Ensued.
Nothing focuses the mind quite so intently on the sheer stupidity of government as doing your taxes.
Nothing focuses the mind quite so intently on the sheer stupidity of government as doing your taxes. What is taken from us is excessive, the intrusiveness is maddening, and the rules are byzantine, which is the distilled essence of most of our interactions with the state. So, it was with a certain degree of anticipation that I told my son that, after working hard at the supermarket in addition to his homeschooling and martial arts, he would have to file his first tax return. Much fun ensued.
Given the complexity of our returns, involving a trust, commercial real estate, and business entities, my wife and I pay an accountant to wrangle our taxes. But before Anthony heads down that path, we thought he should understand what it means to fill out his own return and hope for the best.
"The whole system is based on the premise that the government already knows how much you owe, but won't tell you. You have to guess," I told my son.
"What happens if you guess wrong?" he asked.
"Well, there's no actual right answer in terms of how much you're supposed to pay. If you can even reach them, IRS employees contradict each other all the time because nobody really understands the rules. But if you come up with something they don't like, they just might destroy your life."
"Oh, shit," he said.
At the IRS website, we clicked on the "File Your Taxes for Free" link which touted "a public-private partnership between the IRS and many tax preparation and filing software industry companies who provide their online tax preparation and filing for free." The first option was for "guided tax preparation" involving "simple questions" and letting "software do the work." That sounded like a great way to undergo an expensive and potentially perilous process without understanding what the hell is happening. We opted for "free fillable forms" instead, which walked Anthony through a 1040.
"What the fuck does that even mean?" my son asked multiple times as he worked his way through the usual questions about wages, capital gains, deductions, withholding and the like.
"Pull up the instructions," I told him, as if they offered much in the way of help.
He doggedly plowed through the dense verbiage. Because I'm not a complete monster, I helped him through the spots where he was stuck. When the 1040 itself was finished, he had to reenter all of the information from his W-2 because scanning has not yet come to the world of free fillable forms. Then, he submitted his return.
Two days later he received an email rejecting his tax return. For reasons unknown, rejections consist of gibberish such as "XML data has failed schema validation. cvc-complex-type.2.4.b." You copy the email into the IRS's Error Search Tool to get a (sort of) clear explanation that could have been included in the rejection to begin with. In Anthony's case, we narrowed it to a missing zip code for his employer on the W-2 form. I could have sworn he filled that in, but who knows? He entered the zip and resubmitted.
Two days later, he received another rejection. This time the Error Search Tool told him that he had checked "Yes" to "the Third-Party Designee area at the bottom of Form 1040" without including a required PIN. That was very helpful, except that he'd printed the forms before submitting and the box in question was definitely checked "No," so no PIN was required.
Fortunately, the public library had a rack of paper 1040 forms and booklets. Anthony copied the information to the old-school form, stuck it and his W-2 in an envelope with a stamp, and mailed it off.
"Let the IRS do it the hard way," I told him. "It's more work for them, which is all the more reason to send them paper forms."
Then it was on to state taxes. To give Arizona credit, it was actually possible to file a return through the means provided. All Anthony had to do was navigate past the Arizona Department of Revenue (AZDOR)'s prominent warning of "intermittent issues with AZTaxes.gov. Technical staff are actively working to resolve the matter as quickly as possible. We apologize for the inconvenience." Then he clicked on the box promising that he could "E-File My Taxes for Free" only to find the AZDOR, like the IRS, was trying to slough him off on a "fast, safe and free way to do your tax return online" through partnered services.
"Oh, hell no," we both said after the experience with federal taxes.
It took an internet search to find that the AZDOR had PDFs of its 140 (individual income tax) form in both it-does-the-math and simple printable formats on its website, along with instructions. We chose the calculating form. It was our own fault that we overlooked the instruction to use it only with stand-alone Acrobat software, since it locks up in web browsers. With just a little drama, Anthony got his return filled out and mailed to the Department of Revenue.
As expected, my son was less than enthusiastic about the experience, amidst much cursing and references to official incompetence. He could have bypassed a lot of the hassle by going with a tax preparer, or one of the answer-easy-questions services. That's certainly what the tax collectors prefer.
"Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year to avoid refund delays," the IRS urged in January. "If you need a tax refund quickly, do not file on paper – use software, a trusted tax professional or Free File on IRS.gov."
But that would also bypass the full experience of preparing a tax return and wondering over its arcane terminology and the judgment calls necessary for navigating the form's many entries. It reduces the pain of filing (though not of watching money disappear from your pay) while also diminishing comprehension of the process. There's a lot of value in having to stop and ask yourself, "What the fuck does that even mean?" as my son did many times while wandering through a minefield of rules.
With part-time income and refunds due, the stakes are low for Anthony. This is a good stage in life for him to experience filling out a 1040 form and a state return and to wonder if he got it right. When his income rises and there's more at risk, he'll be able to go to a professional tax preparer with a better understanding of just what he's sparing himself.
And when his accountants mumble curses under their breath, as mine frequently does, and complain of the arcane red tape and incompetence of tax collectors, my son will know exactly what they mean.
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You sound like a couple of ungrateful white people. Don’t you know that taxes are the price we pay for civilized society?
https://www.youtube.com/watch?v=1P3FExwBTaY
Here’s part of the price paid for democrat governance……
https://www.kptv.com/video/2023/03/02/all-portland-walmart-stores-permanently-close/
FTA:
“The last two Walmart stores within Portland’s city limits will be closing later this month, the company announced.”
That’s Democrat governance. The problem is the Democrat party and their basic antipathy to democracy.
Google pays a $100 hourly salary. For a 40-hour work week, my most recent online earnings were $3,500. My younger brother’s buddy claims that he at-90 works for about 30 hours per week and makes an average salary of $12,265. I’m amazed at how straightforward things used to be. More details may be found
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More information→→→→→ https://dollarwork9.blogspot.com
I just flagged you as a racist comment, which it obviously is.
You don’t merely SOUND like a racist BUM. You just flat out confessed that you are.
The video you like is 100% pure propaganda.
It’s a rite of passage.
Try being an entrepreneur and filling out any tax forms. Best to hire an accountant and say “fuck it”.
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And when his accountants mumble curses under their breath, as mine frequently does
No no no, don’t try to make your accountant the good guy. The tax-preparer industry lobbies for a complicated tax code. Your pain is their gain.
If only your homeschooling had included something about the free market, and proper use of internet tools, you would have filed for free using just a commercial tax company with no IRS wall of confusion in the middle.
(and perhaps proper English without obscenities)
I have filed for “free” (paying only with my financial information) for years. Takes about 10 or 15 minutes of data entry once all the various W2 – 1099 type forms are in hand. They also include validation steps so missing zip codes etc, are caught before filing.
I believe this was intended to be a learning experience, before he started using the easy button.
“…my wife and I pay an accountant to wrangle our taxes. But before Anthony heads down that path, we thought he should understand what it means to fill out his own return and hope for the best.”
(and perhaps proper English without obscenities)
Fuckin‘ A!
I know this is batsh1t crazy, but how about all taxes get thrown out, and we simply pay a national sales tax on everything? No exceptions. No exemptions. No credits. No write-offs. No depreciation. No nothing. Simply pay the national sales tax and be done.
It’s an idea and maybe better than what we have. Are you planning to apply the tax every time a carton of eggs changes hands from the farmer, to the processor, to the distributor, to the grocer, and finally to you? Or only retail?
If you plan to just tax the last step, be prepared for an incredibly complex 500 page book of federal sales tax regulations, continuously changing due to heavy lobbying and executive orders, defining what counts as the last step.
Also be prepared for seriously invasive inspections to prevent “revenue leakage” – i.e. goods disappearing untaxed from some level without being officially transferred to the next level.
Be prepared for more intense regulation of bartering, since it will be viewed as tax evasion. As will “growing your own” if it’s done at a significant scale by a larger group with distribution to many households.
And don’t for a second think that you can look at Europe and how it worked out there. We have different government culture here, especially at the federal level. If you want to know how it will work out in the US, look at federal taxation of alcohol.
But still, better than what we have….IF you actually scrapped all the other taxes. But that won’t happen either. About half the country views class hatred as good thing that should be acted upon by government.
do companies not pay taxes today?
do people with yard sales charge sales tax?
Stop giving them ideas.
Dare to dream; The ‘feds’ already have thousands of “sales tax” on all sorts of specific produce. Don’t see very many understanding that now.
Yard sales don’t charge tax because it’s recovering some value from depreciated assets, so there’s no real profit.
Now, if it’s an estate sale, maybe there is some tax involved for assets which appreciated. But estate sales generally come after someone has died, and a tax is assessed on wealth (including tangible assets) for that, so the tax has arguably already been paid.
No company pays taxes. They collect taxes as part of their pricing structure, and pass the tax portion along to the government. And we, rubes that we are, call that ‘paying their fair share’ or something.
easy there cherry…you’re going to confuse people with “facts” and “information”. they prefer their feels and sense of piety.
duck,
I think we should tax every transaction. let’s say 3%-5%. but on every single transaction. the coal, the steel, the car. build in the 18-20% that the federal government coaxes out of GNP in a more efficient manner. then if you want welfare, do it as a stand-alone bill, not via the tax code.
That’s a VAT (value added tax), like they do it Europe. The problem in Europe is that at each step the cost in the next step includes the tax on the previous step. So you are paying a tax on a tax. Unconstitutional here. You could only do the sales tax on the actual cost, not including the previous taxes.
No, that not how it works. At each stage you pay the tax on the price you charge, but claim back the tax paid on the inputs, so the net tax is on the value you *added*. The clue is in the name.
that’s a called a tax on a tax…do a quick calc and see that that does to the price of things as they are marked up throughput the supply chain. perhaps you were suggesting a tax on finished goods? a more palatable idea
The tax codes are written to confuse and to make us all feel inadequate so that we have to find accountants. Accountants are truly ONLY necessary for corporations and businesses.
It does not matter how many times the system taxes items throughout the process. It reduces the tax at every step and makes it a simple process if the TOTAL TAXATION is limited.
Currently, the rich watch WHERE they purchased what to avoid taxes. AN example might be a boat or an airplane that has luxury tax on one place an not another. That can pay thier living expenses for year at the right level.
There are HUNDREDS, even thousands of tax games to play. Not many accountants get it and the ones that do can get returns for even simple taxpayers.
I would rather that food and simple clothing (under some value be tax free, all the rest are taxed at a very simple rate, a few percent nationally.
However, history has proven that societies that had less than a 17% total tax rate expanded and grew and became world leaders. It has also shown that every nation whose taxes exceed that number begin to falter and fail. Part of the equation is that government begins to become rife with exploitation and abuse of funds and even ideologies being to change.
So I would say that IF we looked at the GDP, subtracted all food goods and medicines, and LABOT, then made a base line such as $XXX per person clothing allowance untaxed we could design the tax to be total of 17% throughout the rest of all purchases, even if paid at every step along the way. When the bottom line consumer pays for an item, he IS PAYING TAXES all along the line anyway. Therefore many are paying 30-40 65% in taxes, depending upon income. I know that my Father’s property tax is currently a HUGE percentage of his income, enough that he can no longer afford to LIVE.
With regard to clothing allowance, This would mean that the government would send a check back every year to every person for the clothing allowance and the tax paid at the counter. WHETHER they spent the money or not!
I can tell you this: Property tax was meant to Be THE ONLY TAX at one time and allowed one to VOTE. Today since all can vote, property tax needs to be eliminated in favor of a general tax.
“About half the country views class hatred as good thing that should be acted upon by government.”
I certainly hate the mandarin class. Can we get the mandarins to off themselves?
Because a sales tax, especially if just baked into the price as it is with the VAT in Europe, is a great way for government to hide how much they are sucking out of the economy and prevent the citizens from resisting.
But you were right about the idea being batshit crazy.
hide in plain sight?
They do that now via withholding. And to top off the trick, they make you feel great about getting refunds, when in reality what you did was give the government an interest free loan to send off to Ukraine and to pay for Drag Story Time.
Exactly. They also think that their employer pays half of the payroll tax. Tax filing to the employee class is like Christmas. They can’t wait to spend that big refund they get from the U.S. Treasury. There is no way they will accept a paygo sales tax. They’ve already proven that they can’t do the math.
I’m not convinced that’s worse than an income tax. Of course income tax would have to be abolished entirely for me to get behind any kind of national sales tax.
There are too many people who think someone else makes too much money to ever be rid of the income tax.
Too many democrats, in other words.
A sales tax is also the most regressive tax, the poor pay the highest percent of their income.
Consumption taxes are as intrusive as income taxes because the government has to audit everybody who could sell. Yard sales, wholesalers, retailers, manufacturers, taxis, everybody.
Why? Because people will go a long way to dodge the hefty taxes necessary. Local, state, and federal governments spent 40% of GDP last year. Can you imagine how hard you’d work to avoid paying 40% of everything you sell? Do wholesalers and manufacturers pay the consumption tax, or is it only retailers? Define each, and remember, you have to audit everyone to make sure everyone is in the right category. That craft brew pub, the winery with tours — they are both retailers and wholesalers. Can you imagine how intrusive those audits are going to be, and that includes audits of all their customers to make sure they didn’t lie to the brew pub or winery.
The only tax which can be anonymous and easily verified is a real estate property tax, where all the government cares about is that the tax was paid, not who paid it; they don’t even need to know who the owner is, for that matter, because they know where the real estate is, and if the tax isn’t paid, they can pay a visit in person.
does the government audit people for yard sales today?
yeah, heaven forbid people actually have to see how much it costs for “free” stuff.
Property taxes should be and would be abolished.
They should be but the Fair Tax proposal at this point only applies to federal taxes.
I live in Green Bay, they audited people for parking cars on their lawns during Packer games.
You do know that the National Sales Tax is a tax, right? That taxes require tax collectors, right? That this National Sales Tax wouldn’t do away with the IRS, as I’ve heard National Sales Tax advocates claim, right?
And you do know that the National Sales Tax would do nothing to satisfy Congress and the Presidency’s desire to spend, right?
National Sales Tax wouldn’t do away with the IRS
Every state has its own Department of Revenue and most already have a sales tax. The IRS would be completely unnecessary.
So why doesn’t the State just collect Federal Income Tax?
National Sales is a dumb idea that goes no-where. It’s just change for the sake of change.
I’ve long favored organ harvesting the left, to pay down the national debt.
That’s a revenue-only tariff, what financed These States before 1914. It’s what the South wanted (besides to bully and rape blacks), but the yankees wanted Comstockism, censorship and a protective tariff to help artificial people gang up on and extort individuals.
“What the fuck does that even mean?” my son asked multiple times as he worked his way through the usual questions about wages, capital gains, deductions, withholding and the like.
I remember when my Dad showed me how taxes are done for the first time and I must say, WHAT THE FUCK IS WRONG WITH YOU WAITING UNTIL IT’S *HIS* TAXES TO SHOW HIM HOW TO DO THEM?
When you pay the tuition, you remember the lesson. Watching “Dad” struggle with his tax form, and then going out to ride your bicycle or lope your mule while Dad writes the check is not a lesson likely to really teach anything. When YOU are wrestling with and trying to interpret the form, when YOU are receiving the IRS rejections for spurious and inarguable reasons, when YOU are having to write the check, and most importantly, someone has impressed upon you just how miserable the IRS can make YOUR life based on an error they have made (or for no reason at all, or for having demonstrated a lack suitable respect as indicated by failure to genuflect at the appropriate time) — then, you have paid the tuition and are much more likely to remember the lesson.
I remember that moment. Realizing how big of a chunk taxes end up being was quite the eye opener. That’s what got me more than the stupid complexity, which I never really found all that difficult to deal with. I always just did my own on paper forms until I got maried.
Local, state, and federal governments spend $10T a year, $9T from taxes, the rest borrowed/printed. That $30K/year per person, $40K/year per adults. Or $27K/year per resident and $36K/year per adult for taxes.
You tell people that and they don’t believe you. You explain about 14% payroll taxes, 10% sales tax, gasoline tax, property tax included in rent, people just don’t believe it.
Anti-government cranks and disaffected right-wing misfits are among my favorite culture war casualties.
I’m just grateful my children and grandchildren will get to compete economically with the next (and smaller) generation of antisocial, faux libertarian losers.
Curl up and die, shithead.
But before you cash in your shit chips, I am still waiting for examples of those “shining examples of progressive communities” you mentioned, ass-wipe.
Detroit. Chicago. Oakland. Portland. Progressive utopias, one and all.
I’m just grateful my children and grandchildren will get to compete economically
When they’re sold at auction?
It’s a lucky thing for spiritual girl-bullying mystics with redneck state legislatures that Wily Oriental Gentlemen now produce the Twentieth Century Faux plastic girls for export. The only thing Texans man enough to bully girls will be able to cuddle up to are sex dolls and trannies. Sinfest’s border joke sums it up…
Hey, no clingers today?
Uh huh. You leftists fags are taking some pretty big hits lately. I would ditch the gloating and practice begging if I were you. Of course I’m infinitely superior to a subnormal prog soyboy beta male, like you.
FUNNY! the beta-cuck soy boys are all pissed at you now. shouldn’t you be hunting wabbits? and the term they use isn’t “male” it’s some other term we fucking don’t give a shit about…way down the alphabet of lesbofagtrannyfey initials.
i am the patriarchy and i approve this message.
You don’t have any kids. No one would ever fuck you. Unless you were being bottomed at some bathhouse.
Clingers should try to be be nicer. Increasingly, as America progresses, about the only thing disaffected right-wingers will have going for them is the magnanimity and generosity of the culture war’s (and economy’s) winners.
They won’t have to compete. They will have been trained under your tutellage to adore their pederasts and enjoy their time with sodomites.
“The whole system is based on the premise that the government already knows how much you owe, but won’t tell you. You have to guess,” I told my son. “What happens if you guess wrong?” he asked. “Well, there’s no actual right answer in terms of how much you’re supposed to pay. If you can even reach them, IRS employees contradict each other all the time because nobody really understands the rules. But if you come up with something they don’t like, they just might destroy your life.”
That’s it in a nutshell. Nicely done, J.D.
I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life.
This is where i started………….>>> http://www.jobsrevenue.com
Compensation for labor is not income. I’ve been exempt for 7 years. Read and follow the Constitution.
Let’s hear your elevator pitch.
His elevator doesn’t go all the way to the top.
Good luck with the same dumb notion that’s gotten so many before you charged with tax evasion. We’ll laugh at you while you’re in prison.
(I’m not saying that the income tax system is good, or even that it’s constitutional, let alone consistent with libertarian principles. But if you don’t like it, actually work to change it instead of wishing it away with what you think are clever interpretations of the law. That’s the same thing as people who pretend that highly intrusive gun control can exist alongside the Second Amendment and that it doesn’t really mean what it says. The 2A means what it says, and the IRS means what it says when they say they’ll lock you up for not counting what THEY consider to be income when you do your taxes.)
^+: Do not pass go…
He’s not exempt, he just hasn’t got caught.
Good reasons for voting libertarian before the Jises Caucus turned the LP into a girl-bullying Holy Rollers crusade.
Just as many pro girl bullier libertarians as there are pro infanticide libertarians. And your side is losing.
re: unconstitutional… isn’t there an amendment about income tax? Somewhere between the 15th and 17th. Unless there is an argument of whether that amendment was legally ratified or something I am not sure if it being in the constitution wholly defeats the argument it’s unconstitutional. Unless by unconstitutional you mean something completely different than what most people think that term means.
I was involved with some tax protesters many years ago although I always filed my returns. I think you can make a pretty solid case that the income tax as it is currently enforced isn’t legal even under the 16th amendment and there are serious questions about the ratification thereof. But the federal courts have always found and always will find that these are political issues and that the courts have no jurisdiction. Yes there are people out there that don’t file returns and get away with it. But if they come after you you are toast.
Why is Exempt an option? If they came after me, would it be under business law, maritime law, or common law? I am not a citizen of the Federal Government. I am a resident of the Ohio Republic. During the scamdemic I didn’t receive any stimulus funds. I did receive a letter and a form with which I could declare myself a Federal Citizen and receive a check. The form was ignored and no check has been received.
How much did you pay someone to give you that valuable information?
Just wondering if it was “worth it”.
I tried doing taxes on paper once, but I quickly became so angry I could not actually read the rules printing in very tiny type on the back of the forms. I was not just emotionally upset but felt physically ill. Now I just do TurboTax or whatever, its takes an hour, maybe 2, and then I’m done an on with my life.
Because these companies have become so effective, and they have a symbiotic relationship with govt, taxes will never be reformed. It’s never happening. Let me restate for reason:
Taxes are never going to be reformed. It’s always going to be like this, until the end of life or the end of the United States of America.
It’s ultra-complicated on purpose, and the market has provided a solution that masks the problem. That market is now entrenched and will actively resist any efforts to simplify taxes. I honestly have no idea how Grover Norquist sleeps at night.
As someone who knows exactly what “XML data has failed schema validation.” means, I can tell you that some lazy-ass software developer somewhere didn’t feel like doing the work to generate a useful error message. In this respect, sadly, the government is state-of-the-art.
Even Tuccille, who ought to know better, repeats “your” taxes the way The Looter Kleptocracy has repeated and parroted a jillion times to Goebbels’ specifications. Those are THE GOVERNMENT’S TAXES! Public roads, parks, libraries and sewer monopolies are all owned, operated and run by looter minions.
Does the 1040 -EZ not exist anymore? Its been a very long time since I could file one of those. But when i could it was like one page long. Input data from W-2 in appropriate box; sign, date and send.
… and the real kick in the shorts come’s later when leftard National Socialist (Nazi) – fanboys run around after every Tax Cut claiming you’re not handing over your “fair share”.
Every single lower-middle employed income earner (~$60K/yr) is paying JUST the FEDERAL government income taxes of MORE than *all* their required living expenses (Rent, TV, Food, Utilities, Car, Insurance) in taxes.
This isn’t the USA anymore; It’s a nation conquered by National Socialists (syn; Nazi’s).
TurboTax checks your return for errors before you send it to the IRS. Do some research first.
Confusing by design. Employs a lot of accountants. Gives loopholes for rich people exploit. You won’t find an honest discussion in Washington. The GOP just wants to replace it with a regressive flat tax.
I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life.
This is where i started………….>>> http://www.jobsrevenue.com
I am retired and have a brokerage account that I collect dividends on and periodically receive options premium.
Very simple income – either qualified dividends or short-term capital gains.
My stupid tax return, this year as I just got them signed and sent of, was 61 PAGES of forms!
This is so out of control. We take the standard deduction and have no other write-offs or deductions yet 61 pages of forms is what my stupid tax return was this year. Sadly, it has been longer in the past, but this year is about the norm.
??? What did you have, thousands of buy and sells that each needed to be listed?
That’s one hairy teenager!
(Yes, I know it’s a stock photo.)
If all he has is part time wages, the process is as easy as round the control number from his W2.
If he had other income sources or deductions that required a more complex return, you’re whole “the government already knows how much you owe” boomer bullshit premise falls apart, too.
Tax returns are NOT that hard if you passed 2nd grade math and are honest in them.
I can remember my daughters coming home from their first job with their first paycheck. They had it all figured out, 20 hrs at $6.00 an hour = $120.00. They opened their pay envelope and screamed, where the hell is my money? They screwed up, this is SHORT!. I then sat them down and showed them the withholding part on the check stub, called taxes, Federal, State, Social Security and Medicare. It now dawned on them what taxes were, theft of their hard earned money. And at that age, working part-time, not very much. Mostly Social Security and Medicare, little to nothing in federal or state taxes.
I am surprised it took your son to tax filing season to figure out his money was being stolen by our humanitarian and altruistic government (sarc). Of course they don’t teach much math in school these days, as you have heard, math is racist. Did you raise him to vote for big government Democrats like Joe Biden?
Libertarian view: All taxes are theft.
“Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year to avoid refund delays,” the IRS urged in January. “If you need a tax refund quickly, do not file on paper – use software, a trusted tax professional or Free File on IRS.gov.”
———————
This is the biggest scam of all: people who think the point of a tax return is getting the principal back from their interest-free loan to the government so they can engage in consumer spending… and the government and tax industry encouraging them to think about it that way. People should be mad about refunds, not happy. A refund means you paid too much in the first place.
Seeing statements like this makes me a little ragey. The “get your maximum refund today!” TV commercials do too.
I try hard to never get a refund, and in fact to owe money to the IRS and to my state.
The way to get a maximum refund is to have maximum withholding.
Not a good idea, but most people use this as a way to save a bit as they can’t or won’t budget, and money burns holes in their pockets. It is an interest free loan to the government. But you have to be careful. I ended up owing the IRS thousands one year, and decided that would never happen again. Match your withholding with your expected taxes as closely as possible. Your return or what your taxed owed should be small then either way.
While I do agree that there is excessive taxation as a result of excessive spending, I do not see this specific case as the fault of the IRS. The kid probably doesn’t pay any income taxes, only payroll taxes. The real problem seems to be a couple of “Humanities” types struggling with sequential logic.
No matter what you earn you pay Social Security and Medicare taxes. This is what the kids see. You are correct, a part-time minimum wage job pays little to no INCOME tax.
Funny how other countries seem to manage this perfectly well. I’m in the UK. Right now I have one job and no other income, so I don’t have to fill in any tax forms *at all*. The government knows what I earn, and not only are my taxes paid via my employer, they actually pay *the right taxes*: none of this claiming a refund for the extra taxes withheld over the year.
On occasions when I’ve had to fill in a tax form I don’t have to bother with any software suppliers: I just fill in our equivalent of the 1040 (https://www.gov.uk/government/publications/self-assessment-tax-return-sa100) which you can do on-line or on paper as you prefer. Its not complicated.
Capitalism is supposed to be there to serve the people, to create prosperity and wealth that everyone can share in. But capitalism is like fire; while it can be a powerful servant, it also makes a terrible master. The tax industry has decided that anyone who doesn’t pay them a share of their income is going to have a terrible time sorting out their tax affairs, and they work and lobby to keep it that way. https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free
Hmmm. Perhaps if some of the money paid to the tax preparation industry were spent on the IRS, things might get better. But no, that would be socialist!
no other income
How does the UK treat interest on a savings account?
https://www.gov.uk/apply-tax-free-interest-on-savings
Depends on how much you earn. A basic rate taxpayer gets at least £1,000 allowance tax free.
so they “allow” you to have about 100,000 lbs in an account? how generous they are to let you have the income you earn from money earned and not spent
they don’t manage perfectly well. most of the EU is a hot mess and broke. portugal, italy greece and spain are such dumpster fires they named them PIGS.
You glossed over the issue of getting the “tax code” right, which can affect the amount of taxes withheld by the employer (and thus, the amount of any payments/refunds when/if a tax return is filed).
But the whole process does seem simpler and less stressful–especially the “not having to file a tax return” part (which is, frankly, a wide open invitation to tax fraud, but hey!)
. I’m in the UK. Right now I have one job and no other income, so I don’t have to fill in any tax forms *at all*. The government knows what I earn, and not only are my taxes paid via my employer, they actually pay *the right taxes*:
How does it treat any other income you might earn “under the table”?
Not a word about the magnitude of his taxes? That was what sobered both my kids to government costs. Neither one of them was foolish enough to try the “free” online system.
I propose an experiment.
For ONE MONTH, abolish income tax withholding. Instead, require all employees to be paid their GROSS pay in cash. As soon as they are handed the pay, they would go to the next station in the payroll line and hand over the Federal income taxes that would otherwise have been withheld. The next station would be to pay FICA taxes. There would be stations for EVERYTHING currently withheld. This would force people to actually realize how much of their pay they currently never see.
I predict Congress would be deluged with demands to slash spending in a manner of hours.
Also, change Election Day (quaint, I know) to be the day immediately after tax filing is due.
i’ve often said that the day they ask everyone to write a monthly or quarterly check for taxes on earnings there will be a revolt and demand for efficient government. in the most ironic twist that a libertarian might encounter, “Milton Friedman was an economist at the Treasury during the early part of the war. In his 1998 memoirs, Two Lucky People, written with his wife Rose, he observed: “It was clear to all of us at the Treasury, as we set out to multiply the amount of revenue to be collected from the personal income tax, that it would be impossible to do so unless we could develop a system to collect the taxes as the income was earned, not a year later.”
Dump the income tax and IRS, replace with sales tax. Pay when you buy
https://fairtax.org
DemoRATS will veto, they love brokering the IRS scam on we the people so they can get their fat cut.
Then it should easily pass the House. When’s the vote scheduled?
Will it change his voting habits going forward?
I was 12 years old when I filed my first IRS form 1040.
I was 13 years old with I received my first and only IRS “random” audit. $700 and change gets an audit.
Anyone who has any comprehension of (1) how much in campaign donations can be harvested, (2) how many cost-free five-star dinners can be consumed with multiple bottles of premier wine, and (3) how many fact-finding trips to interesting places can be had/made by a “cooperative” legislator who is attentive to inserting appropriate clauses into the tax code – anyone with such understanding – would have no expectation whatsoever of any change favorable to the common taxpayer. And if the “Honorable” Congressman Grabbem Bytheass is careful and discreet, and not overly burdened by a conscience (a long-extincted creature not seen for at least two generations in W.D. of D.) a lithe and youthful, attractive, good-smelling, fair-skinned (unless your preferences run otherwise) and not-too-virtuous young staffer of your preferred “gender” can enjoy those dinners with you, and travel with you to ease your anxieties and help you perfect your understanding on those “fact-finding” trips.
And he did.
😉
https://www.gov.uk/apply-tax-free-interest-on-savings
Depends on how much you earn. A basic rate taxpayer gets at least £1,000 allowance tax free.
Hey Liz – see my comment to Ashley above.
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