@#$%^&*

[chilipeppermaniac]

NJ is one of the states with the highest rate of working citizenry fleeing due to the high cost of living, high and rising property taxes, declared sanctuary state, and just passed $15. /hr minimum wage law this week.

Our window to leave is probably 4 years or so; I hope property values dont tank before that.
I wanted to be closer to retirement / Social Security age first but we cant wait that long.

This is NOT political commentary, rather it is the relay of facts here on the ground relevant to some of the other posts in this thread regarding taxation.

Delaware has many advantages, JT

 

[chilipeppermaniac]

I thought the US was a low-tax, fund-it-yourself economy. It strikes me that you actually pay more tax than we do in Europe with our socially-funded medicine. Where is all the money going?

OLD JOKE DonP. The heat stopped working in the US Capitol building at the deepest freeze time of year.
They didn't have to fix a thing due to all the HOT AIR already in the building.

 

[jtcnj]

Another welfare freebie for low / no earned income: child tax credit. Tax credits in general are used to directly reduce the amount of tax you owe against the actual amount you PAID (as opposed to deductions which lower your taxable income, on which the amount of tax is based.)

BUT - those that paid NOTHING or almost nothing, they still get PAID a credit towards tax dollars they NEVER PAID.

ON the other hand, some tax credits are non-refundable - if the credit amount somehow exceeds either the total tax you paid in or a percentage of it (or however the particular credit is calculated) you don NOT receive the surplus; you are SOL.

I know of specific instances / common practice through a tax preparer we know: either of welfare / unmarried baby mama or baby daddy will rush to file and claim the kids before the other "parent" files and skip with the loot.

 

[chilipeppermaniac]

I cant BELIEVE the way the removed -- basically ALL deductions-- for MANY employment classes...its ridiculous -- especially to pass the change MID year-- I mean -- pass the bill in 2018 but let it take effect in 2019--- not "retroactive" !!!

funny thing is my unemployed son in law with 3 kids gets like 4 grand back --- WTF?!?!?

"Here's your sign"

 

[chilipeppermaniac]

Another welfare freebie for low / no earned income: child tax credit. Tax credits in general are used to directly reduce the amount of tax you owe against the actual amount you PAID (as opposed to deductions which lower your taxable income, on which the amount of tax is based.)

BUT - those that paid NOTHING or almost nothing, they still get PAID a credit towards tax dollars they NEVER PAID.

ON the other hand, some tax credits are non-refundable - if the credit amount somehow exceeds either the total tax you paid in or a percentage of it (or however the particular credit is calculated) you don NOT receive the surplus; you are SOL.

I know of specific instances / common practice through a tax preparer we know: either of welfare / unmarried baby mama or baby daddy will rush to file and claim the kids before the other "parent" files and skip with the loot.

Oh and I think I heard my girlfriend right the other day when she asked, " how come we pay the taxes and then when we do get a refund of over payment, they want to tax us again on the amount refunded for the next year's tax computation?"

 

[jtcnj]

They send the bucket to the well as much as they can.

"One day the bottom will drop out
Yes, one day the bottom will drop out, I say."

 

[DonP]

Are you required to go through a process of submitting documents each year listing all your income and deductions - essentially laying out all the math?

That’s the process we call “filing our tax return.” There are often multiple forms that are required and everyone above a certain income level is required to file.

That threshold income level is very low, so pretty much anyone who has a regular job will have to file annually.

If you are employed, and on PAYE (95% of the population) you do nothing - there are no forms to fill in. If you are self-employed you submit online. All the calculations are done automatically. In terms of thresholds, there are several. There is a personal threshold which summarises all your various annual allowances. This is called the tax code. That is removed from the calculation before working out the tax. Then there are various tax rates, starting at zero for, I think, the first ten grand, then working up to a top rate of 40% for earnings over a certain amount. All of this is taken care of online, so it's really quite simple.

Very occasionally someone self-employed will be picked out of the hat for an audit. Then you need seven years of receipts etc. to back up your submissions. I've been audited, and it was easy. The chap basically looked at my boxes of records, pulled out half a dozen at random and matched them against submissions, then packed up his case and left.

 

[smitty_p]

If you are employed, and on PAYE (95% of the population) you do nothing - there are no forms to fill in. If you are self-employed you submit online. All the calculations are done automatically. In terms of thresholds, there are several. There is a personal threshold which summarises all your various annual allowances. This is called the tax code. That is removed from the calculation before working out the tax. Then there are various tax rates, starting at zero for, I think, the first ten grand, then working up to a top rate of 40% for earnings over a certain amount. All of this is taken care of online, so it's really quite simple.

Very occasionally someone self-employed will be picked out of the hat for an audit. Then you need seven years of receipts etc. to back up your submissions. I've been audited, and it was easy. The chap basically looked at my boxes of records, pulled out half a dozen at random and matched them against submissions, then packed up his case and left.

We can file electronically, as well, though we still refer to it as “sending” our tax return.