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[–] tomdogg 0 points 33 points (+33|-0) ago  (edited ago)

Because it wasn’t taxed as income the first time you paid it. You used it as a deduction on state taxes but you overpaid. The amount you overpaid would have been taxed last year but it wasn’t because you paid it as a state income tax and deducted it. Now we found out you shouldn’t have done that (you should have paid the accurate amount) and so now that money gets taxed since wasn’t taxed last year when you overpaid.

Edit: listen up you stupid niggers. I wasn’t asked to debate tax law theory or describe why it’s theft. I was just answering op’s question.

[–] captainstrange 0 points 4 points (+4|-0) ago  (edited ago)

Correct me if I'm wrong, but does this mean I could achieve an effective lower tax rate by underpaying just long enough not to incur a penalty, and then paying later on when inflation has decreased the value of the amount owed?

[–] JefftheBaptist 0 points 1 points (+1|-0) ago 

Yes. If you owe money but not enough to incur a penalty, then you are essentially getting an interest free loan from the government.

[–] tippyc 0 points 1 points (+1|-0) ago 

This is basically what i already do. Take a deduction more than they recommend, and then pay the remaining bit every April.

[–] ketoll 0 points 0 points (+0|-0) ago  (edited ago)

Seems easier to just stick it in a retirement account, get the saver's tax credit, and then invest it all in an inflation-protection fund.

[–] Doglegwarrior 0 points 4 points (+4|-0) ago 

Paid the accurate amount. That is laughable i am absolutly not paying the accurate amount im being grosly over charged

[–] fuckmyreddit 3 points 1 points (+4|-3) ago  (edited ago)

you should have paid the accurate amount)

Do you think there is an accurate amount? Why do accountants that look at the same documents come up with different numbers for the "accurate amount" of taxes owed? Yes I'm sure Turbotax has made returns somewhat standardized but there is no precise percentage owed for an income. And taxes can be complex. There is no accurate standard tax amount to pay if you make x and you have x number of children.

As for your saying Tom SHOULD HAVE PAID his taxes blah blah blah. That is a philosophical and constitutional argument that takes too long to explain right now. We pay taxes because the big boys have the big guns. We bow to power. There is no REASON we Should pay taxes other than to keep our families from living in the street after we lose everything.

"SHOULD PAY TAXES" is not a compelling argument once you know where your money is going. And really, the Federal government's taxes should be about 20% if that. Do we really need a federal department of education and those types of bloated bullshit departments? I'm fairly certain, from what I've read, that 20% (some say 10%) would fund the necessary parts of the budget, for example, the military.

[–] 7e62ce85 1 points 1 points (+2|-1) ago  (edited ago)

Do you think there is an accurate amount?

This.

They have tricked the slaves into handing over their stuff on their own and do the paperwork too.

No one will notice if you change the result say 1% to either side unless some automated system catches it.

[–] skidder 0 points 0 points (+0|-0) ago 

The reason this issue crops up is that the state/fed gov't withhold taxes with just a general idea of what you will owe depending on your W-9 you fill out. Then at the end of the year they tell you what you paid them. You file your return and that is what you actually owe based on your individual circumstances. The difference is either a refund or a tax payment to them. Let's say you paid $1,000 in state taxes throughout the year. When you did your FED taxes you told them you paid $1,000 in state taxes, which you did. That $1,000 was used to reduce your reported income to the FEDs. Let's say you made $50,000 but with the $1,000 deduction your income tax owed was based on $49,000 (50-1). Then when you filled out your state return it calculated that you only owed $900. So the state sent you $100 tax refund. That $100 should have been reported on last years income so last year you should have paid the tax on $49,100 instead of $49,000. So you add that income onto this year and pay the tax. I don't recall if you are taxed at last years marginal rate so that could be more FED fuckery. Let's say this year you made 100K. The last $100 is taxed at the highest rate for making 100K. So if you were to add $100 in income from last year's state tax refund you would actually pay more taxes then you would have had to last year, because the $100 taxed would have been the last $100 you made on 50K, which would have a lower tax rate. Does that make sense? Either way, the previous posters are correct, you excluded that money from income last year so it's owed this year. BTW, this doesn't apply to FED tax refunds and last year was the final year for deducting state taxes anyway so it won't happen to you again. Hopefully we'll get rid of this stupid system in the reset.

[–] 8_billion_weiners 1 points 0 points (+1|-1) ago 

Looks at other replies to your thread. "Stupid niggers" seems about right.