#16
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I don't think I saw it mentioned, but the best tax shelter for us "W-2 people" is a 401(k)/403(b) (as applicable to your occupation). Max them out as soon as you can in your career.
Greg |
#17
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Any of the tax-advantaged accounts will work, depending on your income and what accounts are available to you. IRA, Roth IRA, etc.
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#18
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Greg |
#19
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I can't speak to your specific situation, but one big trend since 2017 is the standard deduction has been creeping up significantly, while people's ability to itemize has gone down. The state and local tax deduction has been capped at 10K beginning in 2018. For existing homeowners, many of whom refinanced around 2021 when rates were so low, that is significantly reduced their deduction.
This was the first year for me since I was in college that I finally crossed over the threshold from itemizing to standard deduction. When you are itemizing, you are typically taking more deduction than has been taken into account with your withholding, when you take the standard deduction you're not. I can't speak to your specific situation, but if you have been itemizing, a useful exercise would be to go back over the past couple of years and compare your itemized deductions to the standard deduction.
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Instagram - DannAdore Bicycles |
#20
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It did not happen this year, but a few years ago there was an adjustment made to my Federal return which resulted in a corresponding adjustment to my Maryland state return. I received a letter from the state showing that I owed an additional $350 (or so) on my return for that year. I mailed them a check and they credited my return for that year. But the state then snatched the same amount from my current year refund, even though the amount had been already paid. I called the state twice and spoke to agents who both told me that they could see the return was overpaid and I would receive my money, but nothing happened. I then sent a package of the return with all of the attachments to the state and requested a refund. I never from them. It was only $350 but I will never say anything good to anyone about the state's tax department.
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#21
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I did my own tax returns in my youth when I wasn't earning much then had a tax attorney handle them for me. When I was selected for a compliance audit by the IRS I was SO GLAD to send him to meet with the IRS agent. Of course he was armed with every receipt, check stub, etc. they needed and they were all color-coded, alphabetized so he said it was the easiest audit he had ever handled. My wife was an excellent bookeeper and we avoided submitting any "iffy" red flag deductions like home office deduction, country club membership, etc. Even though I have been retired for years we still have a tax preparer handle our returns because Leslie gets a salary as Director of Music Ministries at our church plus shegives private piano/organ lessons to 30-40 students and that is like running any other small business. Glad to say there is also investment income to deal with so we are very happy to have pro overseeing our tax compliance. I guess I just wrote a generic advert/promotional piece for tax preparers but mine have helped me sleep better for years. |
#22
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C64 SR12 EPS SPEEDVAGEN Integrated Road Intense Tazer MX Last edited by KarlC; 04-08-2024 at 10:39 AM. |
#23
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Note to youngsters, marry a CPA. All I do is get turbotax to work on my computer and its here game.
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#24
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I'm trying to understand how OP got hosed. We have had a couple of years when we didn't withhold enough, it happens. Then you pay the taxes later.
I was grumpy a couple of years ago because USAA decided to get out of mutual funds and the people they turned the business over to sold everything and we had capital gains tax for no benefit to us. I don't think we had any way to offset the gains either. |
#25
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Yea I owed more than anticipated but a wise person told me I must be doing okay if I owe money...... I like to say I owe my "uncle" this time of year makes me feel better that way. and Im a company man
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#26
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#27
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I'm going to have to pay tax on Social Security soon since I'm going to have to claim my benefits this year. It's double taxation since I paid into it in my working career with after tax money. At least California doesn't tax the benefits.
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#28
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You might want to try your state reps. |
#29
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Glad you got your money. I will try something different.
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#30
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The downside is that with the volume he goes through they might think he's laundering money.
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It's not an adventure until something goes wrong. - Yvon C. |
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