The Down Range Forum
Member Section => Down Range Cafe => Topic started by: m25operator on June 03, 2010, 09:41:34 PM
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Out of the wild blue yonder, this is the 1st year I have had to pay Income tax in a long time. Today I get an 800.00 check from the IRS, there is a little line under the amount, that says, 12/09/02, and I am guessing means a 2002 mistake, what a deal, and when I really need it. How does this happen, does Obama know??? Don't look gift horses in the mouth, deposit tomorrow AM.
Thanks be to God!
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Out of the wild blue yonder, this is the 1st year I have had to pay Income tax in a long time. Today I get an 800.00 check from the IRS, there is a little line under the amount, that says, 12/09/02, and I am guessing means a 2002 mistake, what a deal, and when I really need it. How does this happen, does Obama know??? Don't look gift horses in the mouth, deposit tomorrow AM.
Thanks be to God!
Congrats, Benny!!!
Wondrous how that works out ain't it?
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I can see a new 1911 in your future
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To quote Pops Bayless from the late great Austin jug band "The Asylum Street Spankers.."Well, the Lord giveth and the Lord taketh away, and if that ain't a sweet deal you can kiss my ass"! ;D
Do buy a gun. Send BO a thank you note. ;)
FQ13
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i've never gotton money back... hell normally I owe them in the 5 diget range.
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Hate to be the pessimist here,
First, I have a hard time believing the IRS would be correcting a mistake from 7 years ago (yes 7 years, because while we're living in 2010, they're working on 2009 tax returns). Though it is possible.....just not probable
Second, when many people say they don't "owe" any taxes, what they mean is they overpaid on their withholding. That may make some feel good, but it means you loaned the government money tax free. So I wouldn't brag about that myself. My way of thinking is I want to owe them each year. Just under the amount that would incur a penalty. Yes, it bites, but it was my money until 4/15 and I could invest it, or pleasure myself.
Lastly, $800 happens to be the exact amount of the "Making Work Pay" tax credit for "joint/married" return. Did you take that credit?
But I do agree, it was a pleasant surprise, one you may have cheated yourself out of all these years, but its nice to have $800 in found money.
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Hate to be the pessimist here,
First, I have a hard time believing the IRS would be correcting a mistake from 7 years ago (yes 7 years, because while we're living in 2010, they're working on 2009 tax returns). Though it is possible.....just not probable
Second, when many people say they don't "owe" any taxes, what they mean is they overpaid on their withholding. That may make some feel good, but it means you loaned the government money tax free. So I wouldn't brag about that myself. My way of thinking is I want to owe them each year. Just under the amount that would incur a penalty. Yes, it bites, but it was my money until 4/15 and I could invest it, or pleasure myself.
Lastly, $800 happens to be the exact amount of the "Making Work Pay" tax credit for "joint/married" return. Did you take that credit?
But I do agree, it was a pleasant surprise, one you may have cheated yourself out of all these years, but its nice to have $800 in found money.
I gotta agree with Alf here. I try and break even and have been doing a pretty good job of it for the last ten years or so. Usually, what I owe the Fed is what I get back from the states, a few hundred bucks maximum. It's not their money, it's ours. Don't give the shitheads reason to overspend your money..
Benny, I've had this happen to me as well. It turned out to be a mistake on the IRS's part. I'd wait a few weeks before I spend your windfall.
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I love tax time
as you can gather it is different here
we clam the arse out of everything I can for work expenses and we get a few K back from KRUDD
going to get a 8 shot Taurus revolver & a P14 .303 this year ;D
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I love tax time
as you can gather it is different here
we clam the arse out of everything I can for work expenses and we get a few K back from KRUDD
going to get a 8 shot Taurus revolver & a P14 .303 this year ;D
BFR in .444 Marlin ;D
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See what happened Ben is I prayed for some good fortune to come your way and "God" (B-HO) heard me. LOL
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I have had them find a mistake 4 years later (in their favor, of course). When I was out of work after my accident, the short term disability insurance company through my employer didn't withhold enough over a 6 month period to cover income taxes (and in the shape I was in, it was the last thing on my mind).
Four years later I got a bill from the IRS for $1900. They did knock off the penalties and interest if I paid it all within 30 days though.
:P
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I had a letter from the IRS a couple months ago saying they owed me more money. But I still haven't got it and don't expect to. That's what kind of luck I have.
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Thanks Kevin ;D, but I was hoping maybe 1 member of DRTV worked for the IRS and could explain if the 12/09/02 had any meaning, and yes I will wait a couple of weeks to see if anything turns up, I did have trouble about that time because I had a unexpected windfall of 50,000 dollars, not in cash, but a loan forgiveness, ( never heard of that? I had not ), my home loan was attached to a bond, the bond matured early, and law says, any loan attached to the bond is forgiven, weirdest thing, however, I got a 1099 for 50 grand and change, imagine at your current witholdings, you tack on 50g's and it moves into a wildly different tax bracket. We filed for an extension for the extra cost, but as I found out later, my wife never actually filed the return, and after a few years said I owed 14g's to the Treasury, as you can imagine, I was devastated, I called the IRS agents, who were not helpful, until I just stuck with it, they said I had held jobs all over the country, at the same time, including, carving beef in Kansas, the agents were playing hardball, but after talking to them many times, had an agent, finally tell me, sir you did not file a return. I went to the local IRS office, with my w2's and a RETURN, and in the end, I got 2-3 hundred back. Best advice I ever got, go to the local office and talk to people face to face, those people were a great help, and had a good attitude, told me exactly step by step how to get myself out of the situation.
No I did not claim the " making work pay credit " but maybe they applied it after the fact?
If there are any members who are good at social security, my wife is 100% permanently disabled, and cannot get disability because I make TOO MUCH money, I make less than 100k a yr, and why should that matter, we actually talked about an agreed legal only divorce, so she can collect what to my sense, she has a right to, as much as anyone. If she survives me, and she probably will, then she can collect, but of course my IRA will not pay her, until my dead body reaches 65, without penalty.
Thanks for all the replies.
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Benny,
I'd talk to a lawyer (if you have not already) on the specifics of the Social Security thing. I thought that the only area where spousal income played a role was concerning SSI, which is an addition to regular Social Security Disability. I thought (don't quote me on it, though ;) ) that if someone has paid in enough work hour quarters, they were eligible, if physical requirements were met.
Peg
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Benny,
I'd talk to a lawyer (if you have not already) on the specifics of the Social Security thing. I thought that the only area where spousal income played a role was concerning SSI, which is an addition to regular Social Security Disability. I thought (don't quote me on it, though ;) ) that if someone has paid in enough work hour quarters, they were eligible, if physical requirements were met.
Peg
I have a wife collecting SSI disability, Chuck is correct that if your wife worked and earned enough credits she SHOULD be elegible to collect something. The amount may not be much depending on the credit actuary but it might help. It would also qualify her for Medicare Part A at no cost and allow her to pay for Medicare Part B which is getting more expensive. Your insurance will always be the primary so we (my wife) doesn't bother to purchase it. It just doesn't cover enough to justify the premiums.
It took us over two years fighting with the Social Security offices to get my wife qualified but it was worth it for her. Back then they paid you back to the original claim date so her first check was about 9K. There are lawyers that can help you in the fight but that's another cost that can be difficult to manage and nothing is easy. I have a friend who's husband has been fighting for this for ten years but he was self-employed and I don't know how that changes things.
Good luck, PM me if you wish. Get yourself down to the SS offices and get in their face, like the IRS, they can't hang up on you if your sitting in a chair in front of their desk. BTW, I make pretty good money today but was relatively low income 15 years ago when my wife qualified, I don't really know if that has any bearing on the claim, my wife says it shouldn't matter.
Tim
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Thanks Kevin ;D, but I was hoping maybe 1 member of DRTV worked for the IRS and could explain if the 12/09/02 had any meaning, and yes I will wait a couple of weeks to see if anything turns up, I did have trouble about that time because I had a unexpected windfall of 50,000 dollars, not in cash, but a loan forgiveness, ( never heard of that? I had not ), my home loan was attached to a bond, the bond matured early, and law says, any loan attached to the bond is forgiven, weirdest thing, however, I got a 1099 for 50 grand and change, imagine at your current witholdings, you tack on 50g's and it moves into a wildly different tax bracket. We filed for an extension for the extra cost, but as I found out later, my wife never actually filed the return, and after a few years said I owed 14g's to the Treasury, as you can imagine, I was devastated, I called the IRS agents, who were not helpful, until I just stuck with it, they said I had held jobs all over the country, at the same time, including, carving beef in Kansas, the agents were playing hardball, but after talking to them many times, had an agent, finally tell me, sir you did not file a return. I went to the local IRS office, with my w2's and a RETURN, and in the end, I got 2-3 hundred back. Best advice I ever got, go to the local office and talk to people face to face, those people were a great help, and had a good attitude, told me exactly step by step how to get myself out of the situation.
No I did not claim the " making work pay credit " but maybe they applied it after the fact?
If there are any members who are good at social security, my wife is 100% permanently disabled, and cannot get disability because I make TOO MUCH money, I make less than 100k a yr, and why should that matter, we actually talked about an agreed legal only divorce, so she can collect what to my sense, she has a right to, as much as anyone. If she survives me, and she probably will, then she can collect, but of course my IRA will not pay her, until my dead body reaches 65, without penalty.
Thanks for all the replies.
They may very well have done that . When I did mine , I did not think I qualified for that deduction, I got a letter from IRS saying that my math skills suck and instead of $300, I only owed $43. (There was a money order on the way with in minutes so they did not have time to change their minds ;D )
Tim and Peg are 100% right, Be polite, be reasonable and be there until they give you what you want.
"Yes", means you win, "No", means you need to be more calm, more polite, and more annoying. ;D
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Tim and Peg are 100% right, Be polite, be reasonable and be there until they give you what you want.
"Yes", means you win, "No", means you need to be more calm, more polite, and more annoying. ;D
+100
For Suzy, I must have written 50 letters over two years to the Boston offices of Social Security. We joke now that I either just wore them down until they submitted or baffled them with BS and very good writing skills. Some of the letters were classic, I wish I still had the files from my old PC but they went bye, bye some time ago.
The last letter I wrote all those years ago began with the Websters Dictionary definition of dissabled and went on from there. I convinced someone and it worked. It ain't much but it makes her feel that she's contributing.
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+100
For Suzy, I must have written 50 letters over two years to the Boston offices of Social Security. We joke now that I either just wore them down until they submitted or baffled them with BS and very good writing skills. Some of the letters were classic, I wish I still had the files from my old PC but they went bye, bye some time ago.
The last letter I wrote all those years ago began with the Websters Dictionary definition of dissabled and went on from there. I convinced someone and it worked. It ain't much but it makes her feel that she's contributing.
A libertrian friend of mine justified his SSI by calling it "tax reclaimation". He was right. You paid it into an insurance pool and if you qualify, you should get it. Its no different than haggling with Allstate. The only difference is that you didn't get a choice as to whether you bought in.
FQ13
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If there are any members who are good at social security, my wife is 100% permanently disabled, and cannot get disability because I make TOO MUCH money, I make less than 100k a yr, and why should that matter, we actually talked about an agreed legal only divorce, so she can collect what to my sense, she has a right to, as much as anyone. If she survives me, and she probably will, then she can collect, but of course my IRA will not pay her, until my dead body reaches 65, without penalty.
Thanks for all the replies.
I think your IRA should be available at 60 without penalty instead of 65. And I agree with the other guys get a lawyer for the SSN stuff. That is if she worked for the benefits. If she is claiming on your SSN then I think it might be different. :-\
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Second, when many people say they don't "owe" any taxes, what they mean is they overpaid on their withholding. That may make some feel good, but it means you loaned the government money tax free. So I wouldn't brag about that myself.
While that is true on paper, it isn't in practice. Most people can't, don't, or won't save money. Last year nationwide, this country was in the minus column. Overall Americans spent more than they earned. Give someone an extra $50.00 a week on their paycheck and most will manage to make it disappear with bad daily spending habits. Dump it in a lump sum in the form of a $2,600.00 tax return and the chances at least improve they will do something good with it, or at least less damaging.
My tax guy tells me horror stories every year about couples in high income brackets that don't have enough withheld, and wind up having to write checks with money they don't have. Taking out a loan is bad enough in any situation. Having to do it to pay your income tax is inexcusable. Yet, many are faced with that problem. Most of this nation needs to take a class in economics 101. Bill T.
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I think your IRA should be available at 60 without penalty instead of 65.
If you have money invested in a personal IRA it is avaliable to you without penalty at age 59 1/2. If you do withdraw it after that age is reached, you will still be required to pay any and all applicable income tax on it. It will basically be added to your overall income, (W-2). Bill T.
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When you get into your 50's you can use this to save substantial amounts on your income tax. For example Melanie and I file jointly every year. Back when we turned 50 we started moving money at the end of every year into each of our personal IRA's. The maximum yearly contribution now for people over 50 is above $6,000.00. That equates to $12,000.00 every year I can directly deduct from my, (our), W-2. If you fall into say a 20% tax bracket it comes to an extra $2,400.00 each year.
Now here is where it gets good. We simply take that extra $2,400.00 and use it the following year to keep the financial snowball rolling our way. The hidden beauty is all we are in fact doing is moving money from one account into another. All legal as per outlined by the Federal IRA tax codes. I'll turn 58 in November which means the money will only be tied up for another year and a half. If something should happen after that time, the money is avaliable without penalty. All I would have to do is include it on my, (our), yearly tax return as taxable income. The government doesn't give you many breaks tax wise. It pays to take advantage whenever and wherever you possibly can. Bill T.
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If you have money invested in a personal IRA it is avaliable to you without penalty at age 59 1/2. If you do withdraw it after that age is reached, you will still be required to pay any and all applicable income tax on it. It will basically be added to your overall income, (W-2). Bill T.
I understand that Bill, but I don't understand why M25 thinks he can't get his till he's 65? It does increase your annual income by how ever much you withdraw unless it's a Roth IRA, but if you want it it's yours. Of course if your still working theirs not much reason for most people to withdraw from it, that might be what he means though. :-\
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I understand that Bill, but I don't understand why M25 thinks he can't get his till he's 65? It does increase your annual income by how ever much you withdraw unless it's a Roth IRA, but if you want it it's yours. Of course if your still working theirs not much reason for most people to withdraw from it, that might be what he means though. :-\
I've never heard of any personal IRA that comes with a withdrawal penalty after the age of 59 1/2. The penalty is 10%, plus, usually depending on how much the withdrawal is, it will kick you up into the next higher bracket. It's not that uncommon for middle class people who earn a fair wage to lose .60 cents on the dollar for a early IRA withdrawal. I also believe there are extenuating circumstances, such as high unforeseen personal medical expenses, or "act of God" uninsured property damages, that will allow for early withdrawal without penalty. But I've never known, or heard of anyone actually doing it. Bill T.
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I've never heard of any personal IRA that comes with a withdrawal penalty after the age of 59 1/2. The penalty is 10%, plus, usually depending on how much the withdrawal is, it will kick you up into the next higher bracket. It's not that uncommon for middle class people who earn a fair wage to lose .60 cents on the dollar for a early IRA withdrawal. I also believe there are extenuating circumstances, such as high unforeseen personal medical expenses, or "act of God" uninsured property damages, that will allow for early withdrawal without penalty. But I've never known, or heard of anyone actually doing it. Bill T.
It's a Federal law that you can withdraw from an IRA after 59-1/2. Work-related 401k plans however, keep you hostage until you retire or quit the company.
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It's a Federal law that you can withdraw from an IRA after 59-1/2.
That is what I thought. Bill T.