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This is the first year I can take a lot of itemized deductions. Having a home really shelters a lot of income. Last year my effective tax rate was 16.84%, this year it is 9.62%. This is with a similar income (made 5 grand less this year )

Look at some of the stuff you have to claim or can exempt:

Claim:

Income from recycling aluminum cans. (damn, kids hiding income)
Value of meals provided to you by your employer. (yeah right)
Income from mining operations. (im thinking they mean small time prospectors)

Exempt:

Tax preperation software. ( ie Turbo Tax)
VLF - Vehicle License Fees ( not sure of the reasoning but okay)
Hobby expenses (not sure how this works, might try next year)

Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.

When you mean effective tax rate, is that your averaged rate? Because that is pretty low.

neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.

When you mean effective tax rate, is that your averaged rate? Because that is pretty low.

I own a home this year, plus I sold some stock at a loss. I got to deduct 12,000 dollars so it really cuts down on my income. Effective tax rate is the percentage of my income paid to federal govt when compared to gross income.

Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.

neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.

Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.

TrailerParkJawa wrote:

neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.

Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.

Yes, thank you for that news to brighten my day.

Taxes? I don't need no stinkin' taxes!

(Being able to file a W-4 is nice )

neoolong wrote:

TrailerParkJawa wrote:

neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.

Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.

Yes, thank you for that news to brighten my day.

Is this a good time to tell you that CA has really high income taxes compared to our neighbor Nevada?

I already pretty much knew that. Taxes can suck here. I am an economics major after all.

neoolong wrote:I already pretty much knew that. Taxes can suck here. I am an economics major after all.

Ah, cool. Mabye you should go check out the thread about the Great Libertarian Offer. Id be interested in what you think.

TrailerParkJawa wrote:

neoolong wrote:I already pretty much knew that. Taxes can suck here. I am an economics major after all.

Ah, cool. Mabye you should go check out the thread about the Great Libertarian Offer. Id be interested in what you think.

Yeah, I started reading that article. I'll take a better look and post something after I get some sleep.

We did. And we bought a DVD player. Woo-hoo!

The Beatuy of being part of the Military, I make as much as your avarage minium wager(17k a Year) though I don't have to pay for Food and Shelter which as most folks know... is ALOT

argh! taxes! so glad that i dont have to pay them yet. but i´m not looking forward to doing my "steuererklärung". i imagine it as a real nuisiance since i dispise all paper work. which reminds me that i´m late again on paying my uni fees.

neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.

Actually if you are getting a refund you want to file as early as possible so you can get your refund as fast as possible. If you owe then you should wait till the April deadline and then file for an extension. You want to wait as long as possible.

As for me I sent my taxes in a week and a half ago. My family is getting a nice sized fefund.

TrailerParkJawa wrote:This is the first year I can take a lot of itemized deductions. Having a home really shelters a lot of income. Last year my effective tax rate was 16.84%, this year it is 9.62%. This is with a similar income (made 5 grand less this year )

Unfortunately for me I didn't borrow enough money for my mortage to really make it worthwhile to itemize. I itemized it last year and really had to stretch things to end up with the taxes I owed being within $100 of what the standard deduction was. That's what I get for putting 20% down so I didn't have to pay for mortage insurance.

Tsyroc wrote:That's what I get for putting 20% down so I didn't have to pay for mortage insurance.

Well, it probably evened out in the end, depending of course on how much PMI you would have paid had you not put 20% down.

ArthurDent wrote:

Tsyroc wrote:That's what I get for putting 20% down so I didn't have to pay for mortage insurance.

Well, it probably evened out in the end, depending of course on how much PMI you would have paid had you not put 20% down.

That's pretty much how I look at it but I was still disappointed that having a mortage didn't help me out more with my taxes.

Yeah done em...then again worked for CPA...so still know some tricks and she still does my taxes.

God Tax time I wish I was in the military(get to claim a different state then the one you reside...a variety of exemptions...argh)

Tsyroc wrote:

TrailerParkJawa wrote:This is the first year I can take a lot of itemized deductions. Having a home really shelters a lot of income. Last year my effective tax rate was 16.84%, this year it is 9.62%. This is with a similar income (made 5 grand less this year )

Unfortunately for me I didn't borrow enough money for my mortage to really make it worthwhile to itemize. I itemized it last year and really had to stretch things to end up with the taxes I owed being within $100 of what the standard deduction was. That's what I get for putting 20% down so I didn't have to pay for mortage insurance.

My interest payments from July-December were $8500. I got around PMI by getting a 10/10/80 loan. 10% down, borrow 10% for the down, and the traditional 80% mortage.

Hello, random. I did them today, actually. Only getting a little refund, but hey, it's something.

Refund is always better than owing , babe

Whew...the amounts I've seen.....thankfully I have always gotten something back(yes, sometimes small...sometimes large...but always something)

I'll be getting it done shortly, though I need to get some paperwork from my parents first.

ArthurDent wrote:

neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.

Actually if you are getting a refund you want to file as early as possible so you can get your refund as fast as possible. If you owe then you should wait till the April deadline and then file for an extension. You want to wait as long as possible.

As for me I sent my taxes in a week and a half ago. My family is getting a nice sized fefund.

Im getting a big refund from both FED and STATE so it is important to get is as soon as possible. Especially since I have no income right now.

Jawa, I take it you have some expertise concerning taxes. Well, I have a question. I started up a ROTH IRA this year, putting down $2000 (yeah, I'm a REAL early starter). Can I get any sort of deduction?