If I’m interviewing anywhere that asks me anything about taxes, I’ve done something seriously wrong with my life.
Every decision I make is based on NPV. Every single one. 
That’s cute. See post #52.
^ Y’all need to lay off this cat. He aight.
Hong Kong: 15% flat income tax. Living in NYC and accounting for sales tax, I basically pay 50% in tax.
Please correct me if I’m wrong (nicely please), but my understanding on bonuses is that the govt. basically annualizes them and withholds whatever bracket you would fall into based on that income. For example, say you’re paid 2x per month and get a $20,000 bonus. The govt. equates that to $480,000 per year ($20k x 24 pay periods) and withholds whatever the effective rate is for $480k (multiplied by $20k obviously).
^ That’s how it works for me. I do get taxed at a higher rate for bonuses.
I just received an audit on my tax return for 2012 back from the IRS. It puzzles me!!! They are questioning how many dependents I claimed. I guess it was because of my response to the question: “List all dependents?” I replied: “12 million illegal immigrants; 3 million crack heads; 42 million unemployed people on food stamps, 2 million people in over 243 prisons; Half of Mexico ; and 535 fools in the U.S. House and Senate. 1 useless President.”
Evidently, this was NOT an acceptable answer. I KEEP ASKING MYSELF, WHO The Hell DID I MISS?
^weak and not funny
^Lighten up nigga.
I agree. Weak.
You forgot nine Supreme Court justices.
just messing with ya
This is one of the methods that the IRS has authorized withholding.
There are two principal systems - 1. The percentage, or exact, method, and 2. the wage bracket method.
There are also several alternative withholding methods, such as 1. annualized wages (like Higgs mentioned above), 2. cumulative wages, 3. part-year employment, 4. average estimated wages, and 5. any other method that results in substantially the same amount of withholding as the percentage method.
Withholding is specifically covered in Pub 15, as mentioned by Ghibli.
So Greenie, any tips for us as tax season kicks off? Care to share any loopholes you’re privy to?
Contribute $15k to a MyRA then convert it to a Roth.
Actually, I really don’t. Most “loopholes” are for people with businesses. Either a C-Corp, S-Corp, Partnership, or a Schedule C business. If you just get a W-2 from your employer and a few 1099s from your brokerage account, then you really don’t have a lot of options.
Just make sure you’re taking advantage of all the page 1 and Sch. A deductions that you can.
Especially if you’re single and childless, there is really very little you can do.
^ Yeah, those damn single moms get all the tax breaks!
Start a business and use an S-Corp as your entity. Then make fat stacks and pay yourself a very small salary. You’ll save big by not paying self-employment taxes.
Yo Greenie,
I’m doing my taxes and nearly losing my sht regarding how much I have to pay. In any case, I see that I now can itemize my sht.
Question - How far can I game the donations before it looks fishy? Under $250 for donated items does not warrent a receipt. Can I donate $220 in clothing and have no proof?
Also, I throw cash in the collection box at the church I attend. Am I out of luck with claiming this? Can I have my jive a$$ preacher vouch for me? Wil I need to start getting receipts for all my ish?
What else can I throw in the itemization bin to lower my pay in that won’t raise any eyebrows?