Domain: irs.gov
Stories and comments across the archive that link to irs.gov.
Comments · 1,238
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Tax Deduction Alternative
Since these are unreimbursed Employee Business Expenses you can write them off on your taxes.
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Tax Deduction Alternative
Since these are unreimbursed Employee Business Expenses you can write them off on your taxes.
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Re:A New Low
you know, thanks to DOJ action such as this, I felt the same way and researched how to legally not pay taxes, i.e. hook up a nonprof rather then the IRS. But according to the ol' 1040, dedudctions are subtracted from net income, and then you're taxed accordingly. So basically, unless you give away enough to fall below the IRS radar (no taxable income), I still get to pay for DOJ databases and the lawyers who then claim that the database I paid for will crash if I get to see part of it. ahhhh, America.
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Re:Won't change any minds...
He never discussed the national debt or the fact that over 25% of all federal taxes collected pay interest on that debt. He never suggested paying down that debt first and then cutting taxes after it was paid down.
I am curious as to where this statistic comes from. The IRS states (pg 76) that 8% of federal spending is used to pay interest on the debt. Now I personally believe that 8% is still too much of a load on the economy, but it is much better than 25%. Also note that this is only used to pay for interest on the debt, not the debt itself. -
Re:An uninstaller for IE
The IRS web site seems to work just fine from Mozilla.
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Re:Don't strain yourself.
Lets rub a little more salt into the wounds for the people out there spouting the Labor Department Lies thinking they are the truth.
The US IRS website has a document that answers to the Social Security Tax Collections. This tells what Payrolls have been doing in the period. They are up 1% for FY 2003. Note here that applying a simple reality that the population of the labor force rose by 3.5% in the period that means the average worker got a cut in pay or no job or something that resulted in a net 2.5% loss in pay.
This uproar is not being stimulated by Politicians who would like to drop the issue like a hot rock. It is because out here in the USA there is real pain. The job Payroll decrease per capita is compounded by the fact that the upper tier got a very substantial raise making the real loss more like 6% or more. This is the worse results ever. Not even the Great Depression did this kind of damage to the economy.
Now arguing this on a political front one might note that Mr. Kerry and Mr. Bush represent about the same position on the matter so argument should not be made this way. Rather this should be laid to the point of what is going on and why.
Simply Stated there is a massive Trade War in the name of "Free Trade" being prosecuted against the people of the USA by their government. Their wages and profits are highly taxed while their competition enters the market untaxed. On export the same condition applies. The US Government's trade war against its citizens against them in all world markets.
The Outsourcing issue is developing because we in the USA are catching people doing things which are profoundly disloyal and dishonest in our government and speaking up about it. It isn't anything else. The cause is the "Trade War against America" called "Free Trade" by the Politicians who think that renaming treason will make it decent.
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Re:Stamp of totalitarianism
Don't obey any laws passed by these people, disobey any order or any ruling of authority as a matter of principle. As Americans, you're supposed to be free. Prove it by revolting against unjust laws.
That is fine for laws requiring the return of slaves, or handing over Jews, which all idiocy aside we are a very long ways away from. In the more mundane world of reality in the United States, ordinary people should simply organize and write their representatives. They passed the Patriot Act, they can either refuse to extend it, change it, or repeal it.
Taking the parent post's advice without both very good cause and after having exhausted all legal and legislative redress is heading down the road of insanity traveled by the tax protesters.
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Re:article in Seattle Times: IRS okayed time barte
From the IRS:
http://www.irs.gov/taxtopics/tc420.html
or to quote the top paragraph:
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.
It also specifically addresses Internet bartering exchanges lower on the page
The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Refer to Barter Exchanges for additional information on this subject.
There are exceptions, as with most tax laws, however, it is the opinion of both my accountant and my lawyer that if you work in a field related to the service you are trading, it is income, and not exempt (as in, if you hold a job in the computer industry you cannot barter this service without reporting it.)
It probably also kills the informal exemption if you advertise the service (as you would on a website) although I am not sure of this.
I know the IRS did send a letter in November to a lot of these types of sites reminding them that they need to report all of the transactions to the IRS. I would not be suprised if customers of these sites get a 1099 at the end of this year (it is generally unwise to ignore a warning from the IRS.) It is also possible to be penalized for failing to file quarterly reports.
Of course, they have to know you are doing it first, and that might be a little bit difficult for them to find out if the site does not report it. -
Re:article in Seattle Times: IRS okayed time barte
From the IRS:
http://www.irs.gov/taxtopics/tc420.html
or to quote the top paragraph:
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.
It also specifically addresses Internet bartering exchanges lower on the page
The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Refer to Barter Exchanges for additional information on this subject.
There are exceptions, as with most tax laws, however, it is the opinion of both my accountant and my lawyer that if you work in a field related to the service you are trading, it is income, and not exempt (as in, if you hold a job in the computer industry you cannot barter this service without reporting it.)
It probably also kills the informal exemption if you advertise the service (as you would on a website) although I am not sure of this.
I know the IRS did send a letter in November to a lot of these types of sites reminding them that they need to report all of the transactions to the IRS. I would not be suprised if customers of these sites get a 1099 at the end of this year (it is generally unwise to ignore a warning from the IRS.) It is also possible to be penalized for failing to file quarterly reports.
Of course, they have to know you are doing it first, and that might be a little bit difficult for them to find out if the site does not report it. -
Re:IRS
Here is some information on just that.
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Re:the question about "tax software"
Electronic filing in particular saves the IRS tons of cash. But I prefer to pay $0.37 for a stamp than $20 to e-file.
So don't pay $20 to e-file.
Here is a list of IRS "Free File Alliance" partners. The law requires a certain percentage of US taxpayers have free access to e-file, and this is accomplished through these vendors. All of these vendors have different criteria as to who can file for free, but if you dig around you can find one to suit your needs.
For example, when I filed my taxes back in Feb, there was one outfit providing free e-file if your AGI was above $28,000 a year.
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Re:Profit / Loss
However, you can "donate" your time at a standard hourly wage, and then use that amount as a decuction off of your personal taxes as charitable giving.
This is absolutely false. You should read this from the IRS http://www.irs.gov/publications/p526/ar02.html#d0
e 1345. If you give your time to a non-profit you are a volunteer. -
Hrmmm..,. lemmie see.....INAL and all of that. From some creative googling I found that you might try looking for "charitable organization law site:irs.gov" and "private foundation law site:irs.gov". If you need to know your state laws, try the same searches with "site:(whateverState).gov". For example, mine would be "site:.ca.gov".
Heres some Goodies:
(many are PDFs)- PUBLIC CHARITY CLASSIFICATION AND PRIVATE FOUNDATION ISSUES:
- DOMESTIC ORGANIZATIONS WITH FOREIGN OPERATIONS
- LIMITED LIABILITY COMPANIES AS EXEMPT ORGANIZATIONS
;)The law should really be amended to keep up with this, IMHO. We have many other laws that were to "catch up with the times". Why not one to recognize collaborative efforts of this nature?
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Hrmmm..,. lemmie see.....INAL and all of that. From some creative googling I found that you might try looking for "charitable organization law site:irs.gov" and "private foundation law site:irs.gov". If you need to know your state laws, try the same searches with "site:(whateverState).gov". For example, mine would be "site:.ca.gov".
Heres some Goodies:
(many are PDFs)- PUBLIC CHARITY CLASSIFICATION AND PRIVATE FOUNDATION ISSUES:
- DOMESTIC ORGANIZATIONS WITH FOREIGN OPERATIONS
- LIMITED LIABILITY COMPANIES AS EXEMPT ORGANIZATIONS
;)The law should really be amended to keep up with this, IMHO. We have many other laws that were to "catch up with the times". Why not one to recognize collaborative efforts of this nature?
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Hrmmm..,. lemmie see.....INAL and all of that. From some creative googling I found that you might try looking for "charitable organization law site:irs.gov" and "private foundation law site:irs.gov". If you need to know your state laws, try the same searches with "site:(whateverState).gov". For example, mine would be "site:.ca.gov".
Heres some Goodies:
(many are PDFs)- PUBLIC CHARITY CLASSIFICATION AND PRIVATE FOUNDATION ISSUES:
- DOMESTIC ORGANIZATIONS WITH FOREIGN OPERATIONS
- LIMITED LIABILITY COMPANIES AS EXEMPT ORGANIZATIONS
;)The law should really be amended to keep up with this, IMHO. We have many other laws that were to "catch up with the times". Why not one to recognize collaborative efforts of this nature?
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Hrmmm..,. lemmie see.....INAL and all of that. From some creative googling I found that you might try looking for "charitable organization law site:irs.gov" and "private foundation law site:irs.gov". If you need to know your state laws, try the same searches with "site:(whateverState).gov". For example, mine would be "site:.ca.gov".
Heres some Goodies:
(many are PDFs)- PUBLIC CHARITY CLASSIFICATION AND PRIVATE FOUNDATION ISSUES:
- DOMESTIC ORGANIZATIONS WITH FOREIGN OPERATIONS
- LIMITED LIABILITY COMPANIES AS EXEMPT ORGANIZATIONS
;)The law should really be amended to keep up with this, IMHO. We have many other laws that were to "catch up with the times". Why not one to recognize collaborative efforts of this nature?
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Hrmmm..,. lemmie see.....INAL and all of that. From some creative googling I found that you might try looking for "charitable organization law site:irs.gov" and "private foundation law site:irs.gov". If you need to know your state laws, try the same searches with "site:(whateverState).gov". For example, mine would be "site:.ca.gov".
Heres some Goodies:
(many are PDFs)- PUBLIC CHARITY CLASSIFICATION AND PRIVATE FOUNDATION ISSUES:
- DOMESTIC ORGANIZATIONS WITH FOREIGN OPERATIONS
- LIMITED LIABILITY COMPANIES AS EXEMPT ORGANIZATIONS
;)The law should really be amended to keep up with this, IMHO. We have many other laws that were to "catch up with the times". Why not one to recognize collaborative efforts of this nature?
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Re:I've posted this before
a social security # is not required, an ITIN would work as well, see this page at the US irs
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Re:I know some of these people ..."Collected SS receipts.. (You know that little old flat tax on Salaries and wages, no deductibles or exemptions allowed) Has not been keeping up with inflation.. (And that's assuming zero job growth in the intervening year !!!)"
"Employers are required to pay social security taxes quarterly."
Wrong you are..
1st... Your link claims..quarterly reporting on 941 forms.. .
"Employers must report income and employment taxes withheld from their employees on an Employer's Quarterly Federal Tax Return (Form 941)"2nd.. Employers must make deposits on either a monthly and a twice a week schedule. see pages17 thru 22..
Deposit penalties.. calender days and personal liability is attached to all payments.
2% .. 1 to 5 days late.
5%... 6 to 15 days late.
10%.. 16 or more days late.
15%.. 10 days after 1st IRS notice.
(and it goes up from there)..3rd.. The SS receipts comparison was for the first six months(that is two quarters in laymens terms) for each Federal fiscal year.
"I'm not an expert on tax law, and tax documentation makes my eyes water, so I may be misunderstanding. "Agreed, you are obviously not an expert, and you do not understand tax law/payment requirements.
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Re:Too Low
You explain this.. if I owe tax to uncle sam and I don't file in the return by Apr 15th ( without filling for extension ) I get slapped by about 25% fine - how is this paperwork different ? 25% v/s 1.6% - I say its not fair.
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It is necessarry...
Because several states now allow illegal immigrants to obtain drivers licenses using two very insecure forms of Identification: A consular identification card issued by foreign consulate offices, or the ITIN Number supplied by the IRS to people who can't qualify for a social security number.
The consular card is recognized by the FBI as an insecure document. The only reason they are needed is because the recipient entered the U.S. illegaly and does not possess a valid visa, passport or other identification provided through legal channels. There have been cases where people have been arrested carrying multiple copies of this ID, with the same picture and differing names.
The ITIN number can be obtained by calling a 1-800 number and providing a name and address. The IRS does nothing to verify the information given and has stated multiple times that this tax number should ONLY be used for paying taxes. This is not meant to be an Identification number, especially for obtaining a drivers licenses. They sent out a letter this past December to all governors and heads of the driver license division in each state to ask them to stop this practice. Despite this request, states like Utah refused to modify their laws to fix this security problem. This combined with the "motor voter" laws can lead to other problems such as voter fraud.
Because the drivers license is used for many other purposes other than proof that an individual knows the basic driving rules, we either need to go back to only issuing it for people with verified documentation, or creating a national ID that is only given out to citizens. The national ID would be used instead of a drivers license for employment, boarding planes, voting, etc.... -
It is necessarry...
Because several states now allow illegal immigrants to obtain drivers licenses using two very insecure forms of Identification: A consular identification card issued by foreign consulate offices, or the ITIN Number supplied by the IRS to people who can't qualify for a social security number.
The consular card is recognized by the FBI as an insecure document. The only reason they are needed is because the recipient entered the U.S. illegaly and does not possess a valid visa, passport or other identification provided through legal channels. There have been cases where people have been arrested carrying multiple copies of this ID, with the same picture and differing names.
The ITIN number can be obtained by calling a 1-800 number and providing a name and address. The IRS does nothing to verify the information given and has stated multiple times that this tax number should ONLY be used for paying taxes. This is not meant to be an Identification number, especially for obtaining a drivers licenses. They sent out a letter this past December to all governors and heads of the driver license division in each state to ask them to stop this practice. Despite this request, states like Utah refused to modify their laws to fix this security problem. This combined with the "motor voter" laws can lead to other problems such as voter fraud.
Because the drivers license is used for many other purposes other than proof that an individual knows the basic driving rules, we either need to go back to only issuing it for people with verified documentation, or creating a national ID that is only given out to citizens. The national ID would be used instead of a drivers license for employment, boarding planes, voting, etc.... -
Re:SCO ON SALE!
Better do it soon. Take a look at some of the new regulations that come into affect April 30th regarding shorting stocks
Part I Section 1233.-- Gains and Losses from Short Sales
PDF format -
Re:Question
Depending on a few factors, such as sources & amount of income, # of dependents, and the complexity of your return, most people can file for free on the web. Just go to The IRS and follow the "Free e-File" link trail. I used TaxAct.com this year. It's completely free for everyone, very detailed, very easy to use.
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Re:Yeah, I can see this working. *cough*
see http://www.irs.gov/ind_info/friv_tax.pdf
once they bend the words like this there its sorta-kindof hopeless, no? -
Re:Yeah, I can see this working. *cough*
The IRS has a pretty comprehensive PDF online debunking most of these schemes.
http://www.irs.gov/pub/irs-utl/friv_tax.pdf
While clearly the IRS is biased, they do cite many court cases that have legal precident covering many of these loopholes or misreadings of the tax code.
There was also a related article in the LA times last week which touched on the same topics
http://www.latimes.com/business/la-fi-taxman4apr04 ,1,7068670.story?coll=la-home-business [registration required, blah blah] -
Re: CIO, IRS - acronym explained (by the IRS)
The meaning of the acronym CIO in the context of the IRS is explained here (from the horses mouth): IRS Manual - description of the responsibilities of the CIO
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Re:From the article:
The article left out two zeros.
The IRS website publishes stats and has an Excel file reporting that in 2002 it took $0.45 to collect $100.
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Re:From the article:
The article left out two zeros.
The IRS website publishes stats and has an Excel file reporting that in 2002 it took $0.45 to collect $100.
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There are many better optionsSeveral years ago I checked out the IRS page that lists the authorized e-filers, and I came across TaxSlayer. The software is free, it only costs $10 to file both Fed and State. You get a nice pdf filled in for your records.
There were other free ones listed there as well, so why dish out all that money to Intuit? My philosophy is that if your taxes are so complicated that you need all these little wizards, then you're probably better off working with a professional; the rest of us can use one of the inexpensive options on the IRS site.
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Re:Lack of..
Serious question for you. If the CIO of coca cola shot you an email and said "Hey, I'd like to see feature XYZ in product ABC" why on earth would you _volunteer_ your time to, in effect, give charity to a company that has more money than god?
If product ABC is MY open source project, then I'm VERY interested in what the CIO of Coca-Cola is looking for, because if he uses my product he's likely to come back to me for support, services, training, and give me lots of money for those.
I recommend every open source developer (in the U.S. this will vary in other countries) go get themselves an EIN and incorporate. Then ABC Development Inc. sells support and services for product ABC.
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A bargain...It really bothers me when intelligent people fall for the 'Why Spend $1 Trillion on Space When We Still Have Poverty/AIDS/Cancer/Violence/Racism/Etc.' The fact is this, about 21% of the current $2.1 trillion US budget goes to social programs (Poverty/AIDS/Cancer/Violence/Racism/Etc.), not including social security. This breaks down to about $440 billion per year (figures are from page 31 of the 1040EZ Tax Instructions). Ignoring inflation, that puts us at about $17 trillion over 40 years (to sync up with the target date for a Mars landing). Throwing $1 trillion into social programs instead of NASA amounts to a 6% increase in funding. So, will a 6% increase in social spending significantly impact Poverty/AIDS/Cancer/Violence/Racism/Etc.? What is the likelyhood that if we DID shovel in another 6% that we would see a consumate 6% rise in results? On a more cynical note, how many of these progams actually work at all? Is the problem with these programs not enough money?
Ok, lets turn this around. That $1 trillion will cost the average US tax payer about $10,000 over the next 40 years (numbers here, do the math yourself), that breaks down into about $250 a year. Is it worth $250 every year for the next 40 to put a person on Mars (of course, this wouldn't affect people below the poverty line who don't pay taxes)? In Sally Struthers terms, is it worth $0.68 a day? If we give $1 trillion to NASA and set them the goal of landing a man on Mars, will they accomplish it? (I'm biased, so I suggest you look at the long list of successes of NASA before you answer.)
I won't even argue whether we should send people (in favor of probes) since this is really about the spirit of exploration and expanding the scope of human experience. Unfortunately those are entirely subjective, but let's strike a bargain. I'll support and pay for your social programs (because I think they are a waste of time) and you support my silly little space program. Do we have a deal?
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Re:OK, I am paranoid - BUT
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Re:OMG my rights online
Since when was it a requirement for someone to have a job to get a tax check? It's called the Earned Income Tax Credit
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Some folks take this stuff really seriously...
...and some of the posters here just pull answers out of thin air.
My employer, however, has a long-standing commitment to employing the visually-impaired. We have a large support office dedicated solely to their needs. From the intranet site of that office, let me offer a couple of things.
First, here's the general background paragraphs designed to let managers know what sort of things can be done to assist people with low vision:
The term "low vision" covers a broad range of possible conditions and types of visual impairment. The solutions offered below may be of benefit to some individuals with low vision, but not to everyone. The individual to be accommodated must be included in any product decision since no one else can see the world in exactly the same way they see it through their eyes.
Large Monitor with High Resolution (e.g., a 21 inch SVGA monitor): Increases character size in proportion to monitor dimensions and provides a crisp, sharp image.
Magnified display of computer screen: Software solutions exist to present the images on the computer in a larger format. Character size can be increased from 2 x 16 times.
Magnified display of hardcopy material: Hardware exists that will magnify any item placed under a special camera. Documents, drawings, phone messages, etc. can be seen enlarged on a special monitor.
Keyboard orientation aids: A raised dot can be added to certain keys such as the home row keys or the number five on the numeric keypad to give a tactile orientation to the keyboard to augment visual orientation. Alternately, adhesive backed keycap labels can be purchased and applied to the standard keyboard that have very large, bold letters.
As for specific items available for us to install and use, this is the list for low vision folks. Note that you'll need to Google various terminology to get a look at the actual products. (I apologize for the way the lameness filter has forced me to mangle this list by cramming everything onto one line; I hope it's still reasonably readable.)
Blind/Low Vision
Raised Keyboard Dots, ZoomCaps Large Font Key Caps, Braille Key Labels, Super Disk External Drive, VoiceNote QT, VoiceNote BT, Braille Express 150 High Speed Braille Printer, Clearview 700 CCTV/CCD System, MiniViewer Portable CCTV/CCD, ViewSonic G810 21, ZoomText Xtra Level 2, JAWS Professional Edition for Windows, JAWS Part One Basic Training, JAWS Part Two Advanced Training Session JAWS Scripting, Handi-Cassette II Stereo Tape Recorder/Player with Case, Tutorial: Using Microsoft PowerPoint with JFW, Tutorial: Using Microsoft Internet Explorer with JFW, Tutorial: Using Microsoft Outlook with JFW, Tutorial: Using Microsoft Word with JFW, Tutorial: Using Microsoft Excel with JFW, Duxbury Braille Translator for Windows, DECTalk Express External Speech Synthesizer, Sound Blaster Live Audigy MP3+, Dual Headset model 8050 MPAII Headset Amplifier, Yamaha RH2b Stereo Headphones, Sound Blaster SBS 250 Computer Speakers, Kurzweil 1000 Integrated Optical Character Recognition System, Alva MultiMedia 440 Refreshable Braille Display, Mod 80 Refreshable Braille Display, Juliet Pro 60 Interpoint Braille Printer, Basic Navigating in Windows Using Adaptive Technology, JawBone Software, Optelec Traveller, BrailleStar40 Training Outline, BrailleStar80 Training Outline
Note that that's a long list of equipment and training aids, many of which aren't applicable to your situation. But if you don't get some good ideas from that list, you're just not trying. I work with this equipment all the time and I gotta tell ya, it's truly gratifying to set up a computer so that a blind or nearly-blind person can use it and make a living instead of being dependent on other people. Good luck in your efforts. They will be worth whatever effor they require.
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Re:Oh, boy!
Judging by Table 5 here, it would appear that at least in 2000, the top 5% (the floor for which was $128,336 in adjusted gross income) collected about 35% of the income but paid 56% of the income taxes, which amounts to 56% of the total income tax take. I'm not sure how you define "middle class," but I think it's traditionally well below the $128,000 mark.
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Re:Read your 1040 instructions
His stats are right and include all government outlays. Your link explicity excludes some outlays (it even says so). Go here for the accurate breakdown generated from the source.
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Re:Educational expenses deductibleRemember that expenses for education to get yourself re-employed (books, classes, certification testing, etc.) are all tax deductible.
Slashdot isn't where I'd normally go for tax advice but in case anyone read this comment and is changing their tax return this very minute, I think I'll clarify. IANAL (tax or otherwise), so refer to the appropriate tax publications or consult your tax preparer. The specifics of everything I mention here can be found in Pub 970 and the instructions for the 1040 and schedules.
There are currently credits and deductions related to education. Credits are better -- credits count as tax paid, reducing how much you owe dollar for dollar. Deductions mean that you can subtract them from your income, lowering the amount on which you will figure your tax.
The main credits are the Hope and Lifetime education credits. Hope is per student and can only be used for the first two years of post-secondary school. Lifetime can be used forever, but only up to $2000 per return, not per student. These are for tuition and fees -- room and board, books that are not billed to you by the university, and other expenses are out.
These credits generally apply to college/university/vocational schools, and aren't going to include IT type training & certification. There are some other credits and deductions, and you can raid your IRA without the penalty for some expenses (although you'll still owe tax on a standard IRA).
But the training discussed here is probably going to qualify as business-related training, which is far less deductible. First, it's a itemized deduction, so if you claim the standard deduction (like the vast majority of filers) then it's worthless to you. Second, you can only deduct the amount of those expenses that exceeds 2% of your adjusted gross income. There are also a number of limitations, the most significant being that if the training qualifies you for a new line of work then it is not deductible.
Sorry to ramble on about such a boring topic, but if you do this incorrectly it's liable to cost you. Also keep in mind that in many areas there are free tax services available to help with your return, like these nice folks in Chicago.
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Re:Educational expenses deductibleRemember that expenses for education to get yourself re-employed (books, classes, certification testing, etc.) are all tax deductible.
Slashdot isn't where I'd normally go for tax advice but in case anyone read this comment and is changing their tax return this very minute, I think I'll clarify. IANAL (tax or otherwise), so refer to the appropriate tax publications or consult your tax preparer. The specifics of everything I mention here can be found in Pub 970 and the instructions for the 1040 and schedules.
There are currently credits and deductions related to education. Credits are better -- credits count as tax paid, reducing how much you owe dollar for dollar. Deductions mean that you can subtract them from your income, lowering the amount on which you will figure your tax.
The main credits are the Hope and Lifetime education credits. Hope is per student and can only be used for the first two years of post-secondary school. Lifetime can be used forever, but only up to $2000 per return, not per student. These are for tuition and fees -- room and board, books that are not billed to you by the university, and other expenses are out.
These credits generally apply to college/university/vocational schools, and aren't going to include IT type training & certification. There are some other credits and deductions, and you can raid your IRA without the penalty for some expenses (although you'll still owe tax on a standard IRA).
But the training discussed here is probably going to qualify as business-related training, which is far less deductible. First, it's a itemized deduction, so if you claim the standard deduction (like the vast majority of filers) then it's worthless to you. Second, you can only deduct the amount of those expenses that exceeds 2% of your adjusted gross income. There are also a number of limitations, the most significant being that if the training qualifies you for a new line of work then it is not deductible.
Sorry to ramble on about such a boring topic, but if you do this incorrectly it's liable to cost you. Also keep in mind that in many areas there are free tax services available to help with your return, like these nice folks in Chicago.
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Re:tax writeoff
You better watch out for the auditors. What you did is not legal and if your CPA endorsed it then I recommend swithing quickly. Take a read Here (warning PDF) under what you cannot deduct. It very clearly states your time and services. This is true for individuals and businesses alike. You can only charge for out of pocket expenses.
And yes I am a CPA but not a tax accountant. My specialty was Audit but I still had to take those damn classes. -
Re:Tax Write Off?
If LaserMonks is 501(c)(3), then I think it's a write-off. IANAL or Tax expert though!
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IRS to make e-filing available for free (for some)
according to the IRS website, the government, through a cooperative agreement with private industry will provide free e-filing to at least 60% of taxpayers. Exactly how to accomplish this has not yet been published, but it should be on line soon. Respectfully, Anomaly
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Re:Swinging back to a balanceI think you've got it wrong....
The people in the top 10% for "earned" income are more likely to be mid-large cap corporate executives and other folks with just a whole lot of money. The IRS says that the breakpoint for top 10 [adjusted gross]income earners is $92,764/year. For the top 1%, it's $292,913. I'd love to see what the median is for that group. That's the equivalent of 4.8 mil in the bank earning 6%.
I'd wager that a "skilled, high salary" worker tops out at around 150K. After that, you're talking about salespeople on commission, or executives on contract. I don't consider those people to be "workers", just as when you say iron worker, or factory worker, you aren't talking about the suits, you're talking about the folks who get dirty. -
"Supportive"
I support the activities of the United States solely because the law requires me to.
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Re:Sorting? I need an system for _disposal_.
I asked my accountant about this, he said that the statute of limitations on unpaid taxes is 7 years,...
You might want to get a new accountant. As I mentioned above, the IRS' FAQ clearly states, "There is no period of limitations when a return is false or fraudulent or when no return is filed."
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More IRS info...
How long do I need to keep certain records?
Records such as receipts, canceled checks, and other documents that prove an item of income or a deduction appearing on your return should be kept at least until the statute of limitations expires for that return. Usually this is three years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. There is no period of limitations when a return is false or fraudulent or when no return is filed. You should keep some records indefinitely, such as property records, since you may need them to determine the basis of the property if it to prove the amount of gain or loss if the property is sold. For more details, refer to Publication 552 Recordkeeping for Individuals, or Tax Topic 305 on Recordkeeping.
There's more if you're an employer or a business, but I figured that was outside the scope of discussion. Also, their site's search function isn't exactly the most useful; I couldn't find anything meaningful about audits.
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More IRS info...
How long do I need to keep certain records?
Records such as receipts, canceled checks, and other documents that prove an item of income or a deduction appearing on your return should be kept at least until the statute of limitations expires for that return. Usually this is three years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. There is no period of limitations when a return is false or fraudulent or when no return is filed. You should keep some records indefinitely, such as property records, since you may need them to determine the basis of the property if it to prove the amount of gain or loss if the property is sold. For more details, refer to Publication 552 Recordkeeping for Individuals, or Tax Topic 305 on Recordkeeping.
There's more if you're an employer or a business, but I figured that was outside the scope of discussion. Also, their site's search function isn't exactly the most useful; I couldn't find anything meaningful about audits.
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More IRS info...
How long do I need to keep certain records?
Records such as receipts, canceled checks, and other documents that prove an item of income or a deduction appearing on your return should be kept at least until the statute of limitations expires for that return. Usually this is three years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. There is no period of limitations when a return is false or fraudulent or when no return is filed. You should keep some records indefinitely, such as property records, since you may need them to determine the basis of the property if it to prove the amount of gain or loss if the property is sold. For more details, refer to Publication 552 Recordkeeping for Individuals, or Tax Topic 305 on Recordkeeping.
There's more if you're an employer or a business, but I figured that was outside the scope of discussion. Also, their site's search function isn't exactly the most useful; I couldn't find anything meaningful about audits.
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Re:Tax deductible
Like most "sermons" your little rant is based on unproven assumptions and faith.
OK, I'll bite, it's a quiet sunday afternoon and I've little else going on. I asserted:
Where does the government get the money?Okay, 2002 budgeted income for the US government was $1,800 billion and actual tax reciepts were $1,979.518 billion. Of that, 52% comes from individual returns, 10% from corporate and 33% from "employment taxes". The remainder is from the gift tax (.09%), excise(2.6%) and estate taxes(1.3%). I think it's pretty clear where the money comes from - our pockets.
Who contributed, at gunpoint, the funds for the government to pay for things?
And what happens when you decide to stop paying taxes? Up to $100,000 in fines and 5 years in jail Oh yeah, and it's a felony which means you may be barred from voting, you lose the right to own firearms and you may find yourself unemployable.
Libertarian? Guilty as charged. Exagerate? Well, I guess I could have replaced "gunpoint" with "5 years in jail, $100k fine, loss of rights and employment". Unproven assertions and faith? Where?
In the end, I stand behind my statement. We fund the government, some of us unwillingly. The "government's money" comes not from some magical well outside Washington DC but from our pockets, and at the expense of other things we could be doing with it. You want to fund open source software - cool, write them a check, send them a paypal, leave some cash on Linus' doorstep or whatever but do it with your own money, stop spending mine. -
Re:Important add-onIm not saying Im agreeing with the parent post, but if you do, please remember that certain papers must be filed by you for a period of up to 10 years.. so you might want to do what most people in this situation does: buy a small file-safe... othervise you might end up having troubles with the IRS, and we dont want that, do we?
With regards to US personal federal income tax, the recordkeeping requirement is 3 years from filing or 2 years from payment, whichever is later. See 2002 Form 1040 Instructions (pdf), page 60.