Today I Learned...

[Yoshoobaroo]

Originally Posted by Captain Snooze

Assuming the personal tax in the US works the same as in Aus at no point does increasing your personal income make you worse off.


Attachment 206864

Yea sadly A LOT of people don’t understand that you only get taxed the higher rate on income in excess of the previous bracket. The amount of times I’ve had to explain this to otherwise very smart people, people that own their own business even, is baffling.

[Dadhawk]

Originally Posted by Yoshoobaroo

Yea sadly A LOT of people don’t understand that you only get taxed the higher rate on income in excess of the previous bracket. The amount of times I’ve had to explain this to otherwise very smart people, people that own their own business even, is baffling.

I have the same problem when I tell people we have no mortgage. "WHAT! But what about the tax deduction!". They don't seem to get that depending on your top tax bracket, you are sending a lot more money to the bank to get an amount equal to your tax bracket back from the government and the lower your bracket the less you get back.

Or, I'll donate the money to a better cause than a bank and get the same deduction, well at least that used to work. Not so much under the current tax law.

Sometimes I literally have to use 4 quarters to demonstrate.

"So, in my situation, I have to send $0.25 to the government" putting that in their hand. "Now I have $0.75". "Or, I could send the entire amount to the bank" putting the $1.00 in their hand "and the government will send me $0.25 while the bank keeps the rest" taking back one quarter.

Even after that, there are some people don't seem to get it.

It's primarily because most people don't understand the difference between a tax credit and a tax deduction.

[Spuds]

Originally Posted by Yoshoobaroo

Yea sadly A LOT of people don’t understand that you only get taxed the higher rate on income in excess of the previous bracket. The amount of times I’ve had to explain this to otherwise very smart people, people that own their own business even, is baffling.

This is something I myself was confused about a long time ago.
Taxes and such is not really a subject taught in schools (at least that I know of) so knowledge of it requires asking the right questions or parents that proactively explain tax law to their children.

[Dadhawk]

Originally Posted by Spuds

Taxes and such is not really a subject taught in schools (at least that I know of) so knowledge of it requires asking the right questions or parents that proactively explain tax law to their children.

I suspect there is a reason for that, just like there is a reason taxes are taken through payroll deduction for most wage earners.

If folks got all their "wages" then had to write a check (or do some other type of manual transaction) to the government every pay check there'd be a lot more paying attention to it.

Sort of the same mentality that worries about the size of the car payment and not the cost of the car itself.

[Stephen W.]

Originally Posted by Ultramaroon

Doesn't mater if it's software vendors, or mechanics. People either GAF, or they don't. Sad reality.

Are you using "GAF" as defined by the Urban Dictionary, (Give A F*ck) or as defined by mental health professionals, (Global Assessment of Functioning)?

Hmmmm, come to think of it both would fit. Sadly, there are far too many in the work force these days that either or both apply to.

[JD001]

Today I learned that I'm still on the electric car fence.. Got the company car list.. lots of full blown Electrics.. The furthest trip I do for work is circa 180miles (round trip).. the list contains cars with a range of circa 260miles. We have a home charger too but I still compromised, gone for a hybrid!! Keep Greta happy!!

[Ultramaroon]

Originally Posted by Stephen W.

Are you using "GAF" as defined by the Urban Dictionary, (Give A F*ck) or as defined by mental health professionals, (Global Assessment of Functioning)?

Hmmmm, come to think of it both would fit. Sadly, there are far too many in the work force these days that either or both apply to.

Haha... I was definitely thinking along the lines of Urban Dictionary. To be fair, there has always been a spectrum of fucks given by people. I don't think that has changed. The world has been going to hell in a handbasket ever since that phrase was first recorded in Cuneiform on a clay tablet.

[Ultramaroon]

Originally Posted by Dadhawk

I have the same problem when I tell people we have no mortgage. "WHAT! But what about the tax deduction!". They don't seem to get that depending on your top tax bracket, you are sending a lot more money to the bank to get an amount equal to your tax bracket back from the government and the lower your bracket the less you get back.

Or, I'll donate the money to a better cause than a bank and get the same deduction, well at least that used to work. Not so much under the current tax law.

Sometimes I literally have to use 4 quarters to demonstrate.

"So, in my situation, I have to send $0.25 to the government" putting that in their hand. "Now I have $0.75". "Or, I could send the entire amount to the bank" putting the $1.00 in their hand "and the government will send me $0.25 while the bank keeps the rest" taking back one quarter.

Even after that, there are some people don't seem to get it.

It's primarily because most people don't understand the difference between a tax credit and a tax deduction.

Originally Posted by Tcoat

Not exactly a meme but screw it I am posting anyway (for @Dadhawk if nothing else)

amirite

[Tcoat]

Originally Posted by Ultramaroon

amirite

TIL That Ultra has a very good memory!

[cjd]

Originally Posted by Spuds

Yeah, our situation is a bit different. My wife has some confidence issues we need to overcome, so we aren't likely to be dual income for a while at least.

Brackets are graduated though. They only apply to the money in excess of the lower limit of the bracket. So if it bumps you over slightly the higher rate should only apply to the amount you are over. Paying less taxes at the end of the day is better, but if it's the right time to sell, it's the right time to sell. I'd be more concerned about what's long term capital gains vs short term myself.

<<(Not a tax professional or financial advisor)

At this point confidence is starting to surface here too. It really sucks.
And, I'm hoping to avoid *any* at the higher bracket. Also there's AMT to worry about. It'll be all income no matter what, and even if I sold to cover the amount of income tax won't change. But I'd be left holding a single stock.

Deductions are a joke now. I love paying taxes on my taxes.
Could pay down the mortgage, it's tempting. At 3% and making extra payments it's pretty well in hand. Might save $10k in interest, but attempting to get things rolling so I can afford my next car means I'll try investing. Probably will beat 3%. "Lost" $15k failing to sell last week. Blah. Gambling sucks. I should pay off the house and put the rest under my mattress. I probably won't be able to afford TP let alone ever buy a car again.

[soundman98]

a little good news, despite the fact that it has little bearing on any of us.

today i learned that britany spears conservatorship was dissolved.
https://apnews.com/article/britney-s...830f2cb001d74c

an article i saw earlier on bbc said that her dad had a salary of $16k/mo as the conservator, while britany was given an allowance of $2k/mo.
https://www.bbc.com/news/world-us-canada-53494405

my hope is that conservatorship is a little easier to dissolve for others now with some sort of precedent, but i think the numbers/fame involved here are too big to really be of much use anywhere outside of the fantasyland of celebrities...

[Sapphireho]

I was an accountant. I never did tax work in my career, but I did have tax in college, and passed the CPA exam, so I know a little. So few people understand anything about tax. Too frustrating to try to educate. I refuse to engage anymore. Just smile and "how bout them Giants!"

[soundman98]

Originally Posted by Sapphireho

I was an accountant. I never did tax work in my career, but I did have tax in college, and passed the CPA exam, so I know a little. So few people understand anything about tax. Too frustrating to try to educate. I refuse to engage anymore. Just smile and "how bout them Giants!"

i know better. i just find the guy that seems to know the most about it, and let them do my taxes.

oh, a totally completely unrelated question, what are you doing around late january?

[Spuds]

Originally Posted by cjd

At this point confidence is starting to surface here too. It really sucks.
And, I'm hoping to avoid *any* at the higher bracket. Also there's AMT to worry about. It'll be all income no matter what, and even if I sold to cover the amount of income tax won't change. But I'd be left holding a single stock.

Deductions are a joke now. I love paying taxes on my taxes.
Could pay down the mortgage, it's tempting. At 3% and making extra payments it's pretty well in hand. Might save $10k in interest, but attempting to get things rolling so I can afford my next car means I'll try investing. Probably will beat 3%. "Lost" $15k failing to sell last week. Blah. Gambling sucks. I should pay off the house and put the rest under my mattress. I probably won't be able to afford TP let alone ever buy a car again.

I think it's just the standard deduction that increased with the tax changes didn't it? I don't think any regular deductions decreased.

Idk. Good luck?