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OP, put the allowed $16,500 into your company's 401K plan. That will reduce your income from $70,000 to $53,500 on paper. You may be eligible for something after that.
Since I graduated college and got good job (started at $60K but now paying $70K), it seems like all my tax deductions are almost gone. I am stuck in spot where I earn too much so a lot tax benefits are disappearing. Back when I college student didn't seem like I was getting much tax benefits either since I full tuition scholarship from my private college. I probably need earn less $$$ to benefit or make a ton of money (over $100K) so it wouldn't matter as much.
Here list of cuts I see going away:
-Student loan interest deduction almost gone
-No Tax credit for graduate classes
-Even eduction tax deduction is limited to only $2k (cost over $15K for classes)
-IRA deduction gone
If just seem unfair that like if just make $10k to $15K, less I would getting more tax benefits. I don't why the IRS tax rules seem to hit hard on middle range of income ($65K to $100K) where all deductions starts to disappear. Oh well, unfortunately can't do much expect up the $$$ to IRS!
Welcome to the real world. We need to spread your wealth around. This is why Obama visits you and others when you are in college to sell you on him. The real world with taxes, bills, utilities, food costs and overall cost of living would have you asking a lot more questions about hope and change...and his spread the wealth policies when you are on the giving end.
I didn't realize the interstate is "helping the unlucky" as you put it.
Where did I type "helping the unlucky"?I must've missed it. The unlucky in my little collection plate metaphor is simply the guy who has less to drop in the plate.
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Are you talking about helping those less fortunate or are you talking about infrastructure? Please be more specific.
Both, actually. Depending on charity has a bit of a problem for social programs: When everybody's doing well, donations go up and requirements drop. When everybody's in bad shape, donations drop and requirements climb.
OP, put the allowed $16,500 into your company's 401K plan. That will reduce your income from $70,000 to $53,500 on paper. You may be eligible for something after that.
Good advice, although it triggered a flashback to a conversation I had with a colleague who had the same complaint - taxes fleecing him, hardly worth trying for a raise - and I suggested pretty much what you did, just up the 401K contribution. His answer: "Oh, I don't do the 401K thing." Yes, he was willing to forgo the employer contribution just to get more cash now... I haven't really discussed economics with him since.
1. There is still a student loan interest deduction, and that starts phasing out when your modified adjusted gross income hits $60,000. Since you say you had a full tuition scholarship that will affect you, but not as much as it will affect some people. Student Loan Interest Deduction
Again, its seems like other people are getting more tax benefits than me. All that separates me those guys is my income level!
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2. No tax credit for graduate classes. Why should you get this? Or, to put it another way, why should the cost of obtaining a graduate degree be paid by the taxpayers instead of by you?
There is already a credit and deduction for graduate degree but I only qualify for small deduction since I earn too much. If no one get any credit/deduction for education what would be more fair. But if someone get it, why cut it off so fast for others?
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3. IRA deduction gone. Why would this be the case? As far as I can tell you should be able to put in the maximum of $5,000 and get a deduction for it. Do you think I'm wrong about this? https://www.mint.com/ira-center/?sou...ductions_Broad
I ran you mint.com caculator and it said I don't qualify for IRA deduction. The cut off for IRA deduction for Single is $68K AGI. 2012 IRA Contribution and Deduction Limits - Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work (http://www.irs.gov/retirement/participant/article/0,,id=188235,00.html - broken link)
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I don't doubt that your tax bill looks like a lot of money to you. In a way, I agree with you. For instance, I don't think you should be taxed at a higher rate for the money that you work for than someone else is taxed for money received from investments.
Nevertheless, unless you can demonstrate that your marginal tax rate is greater than 100%, which I don't think you can, each additional dollar you earn will result in less than a dollar in additional taxation, so you still are ahead as your income goes up.
What way I see it will be putting in more $$$ to federal government that I will get back. Especially if my income continues to grow, as I plan, more my money would go to federal gov to spend elsewhere.
Somebody has to pay taxes. You have essentially no responsibilities and a high income. The code is setup to make you marry, have children, buy a house, donate to charity, and invest in your retirement.
Wow, that is actually true. Can't believe gov is happily using its power to push a social agenda. It though the US gov was all about freedom and allowing to live the way you want. However, it looks like if want enjoy the tax benefits you better prescribe to certain lifestyle!
Since I graduated college and got good job (started at $60K but now paying $70K), it seems like all my tax deductions are almost gone. I am stuck in spot where I earn too much so a lot tax benefits are disappearing. Back when I college student didn't seem like I was getting much tax benefits either since I full tuition scholarship from my private college. I probably need earn less $$$ to benefit or make a ton of money (over $100K) so it wouldn't matter as much.
Here list of cuts I see going away:
-Student loan interest deduction almost gone
-No Tax credit for graduate classes
-Even eduction tax deduction is limited to only $2k (cost over $15K for classes)
-IRA deduction gone
If just seem unfair that like if just make $10k to $15K, less I would getting more tax benefits. I don't why the IRS tax rules seem to hit hard on middle range of income ($65K to $100K) where all deductions starts to disappear. Oh well, unfortunately can't do much expect up the $$$ to IRS!
Let me play violins for the guy who got a $60,000 job right out of college.
Next, what you forgot in all of your whining was the concept of marginal tax rates. Most of what you listed were misc deductions, which must be 2% of your AGI. If you have a tiny AGI, perhaps the few hundred dollars in student loan interest would be deductible. Personally, I'd rather have a higher income than the ability to deduct small items.
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As soon as you start earning good money, the government shows to start heavily collecting from you!
