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#47 dropping tax on O.T.

YJBrian said:
This. If OT and Tips are not taxable, then there should be no impact on withholding as no tax would be due, but I would get a chuckle if this were a deduction and funny business about paying quarterly estimates came back to bite people in the ass. The howling would be deafening. The other unintended consequence could be qualifying for / phasing out of other tax benefits based on the untaxed income. depending on how the OT/tips are treated, this could either be a huge gift to people or push them out. Curious what a tax man thinks about that.

It seems that tips these days are "earned" income as they are expected whether or not they are deserved, even if you never interact with a human. Theoretically, they are earned through the service you receive from the party receiving the tip, no? Either way, it's income
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See Tips are a gift so legitimately should not be considered income, UNLESS they automatically take gratuity (like is common for large parties) .

I don't know how anyone with a shred of intellectual honesty says OT is not income. ... but I hate the IRS and taxes in general, so if it can be done.. fuck it.. do it.
 
grumpy356 said:
See Tips are a gift so legitimately should not be considered income, UNLESS they automatically take gratuity (like is common for large parties) .

I don't know how anyone with a shred of intellectual honesty says OT is not income. ... but I hate the IRS and taxes in general, so if it can be done.. fuck it.. do it.
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gifts are "technically" taxable as income. Hence why there are max limits to intra-family gifts.
 
rockota said:
gifts are "technically" taxable as income. Hence why there are max limits to intra-family gifts.
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So what is the gift amount before it becomes taxable?

I don’t think it should be anyone’s business other than the two involved
 
Ghetto Fab. said:
Talked to my tax guy about that and the way he explains it, it never seems to work out the way everyone thinks it does. Its not free money.

Your only writing off your purchases on your income. It does lower your taxable income, but that only lowers your taxes by a percentage. So that $5000 tool that you bought, really only saves you a few hundred dollars, and you still have to come up with the $5000 to buy it. Obviously if you've got a legit business that is making profits and subsequently getting taxed on it, then anything you can do to lessen those profits is welcome.

For your average guy in a home garage, you'd be better off working for cash and leave the government out of it.
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Yes and no.

You aren't wrong or anything but its nuanced.
If I get a 1099 from a customer then that opens the door to claim a bunch of shit that you would normally buy anyway.
Vacation, R&D, marketing, home office, etc. etc.
 
What would happen if we nix'd all income taxes and capital gains taxes and just taxed a flat rate on a sales tax instead? Call it a 15% tax on every dollar spent. Doesn't matter if you spent $.01 or $1 billion per year, you pay 15%. No deductions, no loop holes, no exemptions. If you pay in cash private individual to private individual it's untraceable for goods or services like it always has been. Eliminate the CRA/IRS and sell all their assets. Use the proceeds and saved wages to pay off national debt.

Or, perhaps we just make it so the government debt must be settled by the dissolution of said government by the end of their term, or if it runs a surplus all the excess cash is returned to the people. One year before the election date everyone receives their tax bill which must be paid in full before the election or you can't vote. Put the debt to collections if it isn't paid. People might think twice about voting for political parties who waste their cash and stick them with a giant bill. If you can't pay the bill, you don't vote. If the government runs a surplus, everyone gets a cheque instead.

On that same note, maybe make it a requirement to have a net worth of $1.00 to vote. That'll wipe out about 90% of voters who vote for their own financial gain as well!
 
AKnate said:
You're taxed on earnings. There is no scenario where you earn 50k but were taxed at rates like you earned 200k.

That would result in a tax refund of like $8000.

Tax brackets 2024 calculator - Google Search
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I roughly break even , maybe a $2k refund with little to no overtime. I have had years with a 20k refund.

Your taxes are figured taking your pay that week and multiplying it x52 to determin your tax bracket. A $500 week gets taxed a lot less then a $5000 week.
 
Roc Doc said:
Withheld at that rate, but unless you ended up in that tax bracket, you were not paying that rate
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True...

So...zero is better than 32 withholding. :flipoff2:

And i had to make up for the wife's withholding so...yes it still hur5
 
I'm what you call an issue specific voter. For example I voted for Clintons re-election because he, (well congress actually, but he signed it), raised the speed limits in his first term. I won't be clocking any overtime anytime soon, so this is a non-starter for me. Now if they would eliminate income tax on stock dividends purchased with after tax money, I'd be all for that.
 
2big bronco said:
I roughly break even , maybe a $2k refund with little to no overtime. I have had years with a 20k refund.

Your taxes are figured taking your pay that week and multiplying it x52 to determin your tax bracket. A $500 week gets taxed a lot less then a $5000 week.
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Guess I never looked that close. The way my schedule is, I end up with a check for 14 days worked and 2 for 3-4 days worked.

One 3-4 day check covers my bills, so everything after is savings and "extras"
 
ain't reading all this shit, maybe skim through it

he's gonna up the tarriffs and nothing will be reduced. At most taxes might get shuffled around a little to confuse everyone but they aren't going down without the dollar (and therefore the debt) going away which isn't going to happen.

popular presidents have never reduced the size of the state so far
and while it can be hoped that this time will be different, his first term paints an abysmal picture
 
[486] said:
popular presidents have never reduced the size of the state so far
and while it can be hoped that this time will be different, his first term paints an abysmal picture
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While I agree, I gotta admit that his abysmal 1st term was about 846% better than whatever happened '20-'24.
 
His first term, even with it's problems, was still better than any President in the previous century and most of the ones before that.
 
[486] said:
... At most taxes might get shuffled around a little to confuse everyone but they aren't going down without the dollar (and therefore the debt) going away which isn't going to hap
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Hey now, that's part of "The Accountant's Full Employment Act", don't pick on that one :lmao:
 
Motorcharge said:
His first term, even with it's problems, was still better than any President in the previous century and most of the ones before that.
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yes and the opposition in their panic shot their wad without thinking about how they were saying the quiet part quite loud
they called him a populist and I made the mistake of looking into what that means and the arguments against it

thanks capital-d Democrats, calling attention to why small-d democracy results in state growth, why universal franchise is a gimmick and why voting is so heavily promoted all through everyone's formative years
 
[486] said:
yes and the opposition in their panic shot their wad without thinking about how they were saying the quiet part quite loud
they called him a populist and I made the mistake of looking into what that means and the arguments against it

thanks capital-d Democrats, calling attention to why small-d democracy results in state growth, why universal franchise is a gimmick and why voting is so heavily promoted all through everyone's formative years
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There you go thinking too much/hard again.:flipoff2:
 
Yota Up said:
Had no idea. Always assumed zero tax on it. Makes no sense for the gov to hand you a dollar and tax you 10 cents on it. Why not just hand over 90 cents instead?

Oh that's right. Too simple. Gotta make it stupid and employ more gov workers and put a bunch of steps in there so sticky fingers can pinch it along the way.
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You still have no idea. :flipoff2::laughing:

SS benefits are subject to Federal Income Tax, and some states also apply a State Income Tax. And like any other source of income, it's taxed at the rate of total income, part time work (up to a limit of I think $22k currently), dividend distributions, etc., and your SS benefits all combine to set your tax bracket.
 
Roc Doc said:
Are you a wizzard?
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Is that better than being a wizard?:flipoff2:
wizardoz.jpg
 
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