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Oh I think I understand it now. The IRS is simply giving back money that was given to them instead of your state. But you still have to file with the individual state(s) to determine what share they get of that money if any which is how you "owe". Well then the employer(s) should make better decisions on where they send the tax dollars and in the future you will only file taxes to confirm you paid the correct amounts.
The employers have no control over if the any states pass legislation during the tax year (as in you could be entitled to X amount of money back.) So employers still pay the taxes they are told to pay. Yes the IRS gets the bigger (and inappropriate) portion of the taxes. Thats why you file the form with your state because they determine whether or not you "owe." As in, even though the IRS got more money than they were entitled, you might be entitled to more money and they will deduct the amount of money you would've "owed" per se, and therefor you won't owe. Its confusing in this matter, but you always file taxes because employers make mistakes and the states pass legislation. This is why the IRS isn't the only organization you're dealing with. You understand the gist of this though, but again legislation such as recently the CARES Act. Could entitle you to money from the state of NY so you don't "owe".
Oh I think I understand it now. The IRS is simply giving back money that was given to them instead of your state. But you still have to file with the individual state(s) to determine what share they get of that money if any which is how you "owe". Well then the employer(s) should make better decisions on where they send the tax dollars and in the future you will only file taxes to confirm you paid the correct amounts.
Ok. You are starting to get this.
The employer doesn't have any choice in how much to send to the IRS. They do this based upon your income and how many exemptions you told them you were taking it is all up to a chart after this.
Besides, the amount you ultimately owe depends on many factors that your employer cannot know. They don't know how much your spouse makes, how much interest you pay on student loans, if you have a second job, if you have 1099 income, etc. Without all of that info, which may change throughout the year, they cannot know exactly what your final tax bill/refund will be
The employers have no control over if the any states pass legislation during the tax year (as in you could be entitled to X amount of money back.) So employers still pay the taxes they are told to pay. Yes the IRS gets the bigger (and inappropriate) portion of the taxes. Thats why you file the form with your state because they determine whether or not you "owe." As in, even though the IRS got more money than they were entitled, you might be entitled to more money and they will deduct the amount of money you would've "owed" per se, and therefor you won't owe. Its confusing in this matter, but you always file taxes because employers make mistakes and the states pass legislation. This is why the IRS isn't the only organization you're dealing with. You understand the gist of this though, but again legislation such as recently the CARES Act. Could entitle you to money from the state of NY so you don't "owe".
Quote:
Originally Posted by fishbrains
Ok. You are starting to get this.
The employer doesn't have any choice in how much to send to the IRS. They do this based upon your income and how many exemptions you told them you were taking it is all up to a chart after this.
Besides, the amount you ultimately owe depends on many factors that your employer cannot know. They don't know how much your spouse makes, how much interest you pay on student loans, if you have a second job, if you have 1099 income, etc. Without all of that info, which may change throughout the year, they cannot know exactly what your final tax bill/refund will be
I have no idea what you're talking about with "exemptions" that I'm "taking" for filing taxes. But I understand, no wonder H&R Block is free for people that make under a certain amount, - the CARES Act was passed in Congress. But I understand, you pay money upfront to the IRS no matter what that's why they give you a check I'm sorry I said they "pay" you to file. I guess I didn't realize it was because the IRS gets too much money and is simply giving money that isn't theirs to those who claim it by appropriation.
I'm not coming at anybody. Also I am young and didn't work until I was 19 or 20. No jobs for people under 18 now adays and not familiar with those 1098 letter forms.
So answer my question - why are you coming at people and trying to lecture them on how the tax filing process works when you are clearly very unfamiliar with how it works yourself? Some of the people who post here are old enough to be your grandparents.
Pull that kind of nonsense on the wrong person and you'll find yourself knocked on your rear end one of these days. If you're lucky it will be verbal, but don't count on it with some people.
I have no idea what you're talking about with "exemptions" that I'm "taking" for filing taxes.
At some point, probably when you first started your job, you filled out tax paperwork. You told them to take out a certain amount based upon whether or not you were married and had kids. (exemptions)
Your company has been deducting taxes and sending to the IRS based upon what you entered into this form.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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I'll start compilation next week and will get them off to the tax accountant soon by end of February. We won't do itemization this year so its only a matter of getting the 1099's and our rental receipts&expenses. I do a lot of taxable stock trading, and I'll use the profit-loss statement. I don't think any possible wash sales will amount to much or affect the tax outcome, I'll look for glaring possibilities but not going to spend a great deal of time to examine it. I've been fairly aware of wash sales. I don't have any longterm sales, all are shortterm sales, I think
...Oh, and on THAT note...I sure do wish that they taught people in high school, how to prepare and file taxes. Just even the foundations of how taxes work, that would be nice.
I practically foam at the mouth over tax prep companies' ads...they act like taxes are some kind of sorcery where if you know the secret magic spells you can get lots of free refund money. It is a MATH EQUATION. Math doesn't work that way. I get people paying professionals when they don't have the time or patience, or they don't have good bookkeeping habits, or other reasons...but for an otherwise reasonable person to assume that there are secret loopholes that no normal person could find, that the pros know about, is bonkers. It might be a pain in the backside to find the details on some things, but it's not secret arcane knowledge.
But of course, I don't think that our government wants most Americans to be financially literate, let alone to understand tax code. It's easier to flim flam people if they don't have a grasp on how the whole thing even operates.
My mother went to business school 50+ years ago, graduated with high honors. She taught me how to do them, and she proofread them for me for years until I felt comfortable doing them myself. My parents still do their own.
Other New Yorkers can tell me, because I'm not going to go look it up... Is the income tax in NY very high? I bet it might be. So what you are thinking of, is that you get a federal refund but owe taxes to NY state maybe? That is not the IRS paying you to file. That is them refunding your money to you, that was taken out of your pay all last year. But NY state probably has higher tax rates, so you end up having to send them a check. Does that sound maybe right?
They are two completely different entities you're dealing with.
But yeah, if they could communicate and just send your federal refund to cover your state taxes that would save you a bit of hassle.
I ALWAYS end up owing for NYS taxes. I usually get a refund for the Federal. This year I owe for both and the NY, true to form, is higher, double what I owe the IRS. $55 vs. $111. But, I have a sizable e-fund, so I just pull the $$ from there.
I did my Federal yesterday on the 12th when FreeFillableForms unlocked. I haven’t gotten the email yet that the IRS has accepted the return. It often bounces because of a transcription error on a 1099. I triple checked everything but it still happens. It’s the most broken thing about FreeFillableForms.
I absolutely refuse to feed a time to those criminals at Intuit who use campaign contribution bribes to corrupt tax filing and make it extremely difficult to use their legally mandated free services. The IRS has everyone’s W-2 and 1099. And 1098 for mortgage interest paid. Most people should be able to hit an IRS web portal, click “Do my taxes”, and have the IRS fill out the forms. I should just need to review it to make sure nothing is missing. Only 13.7 percent of returns use Schedule A so something like TurboTax is completely unnecessary.
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