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Tax Bill


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14 hours ago, China said:

Agroup of more than 100 millionaires and billionaires on Wednesday presented fellow members of the global economic elite with a stark choice: "It's taxes or pitchforks."

Been saying this for a while now. I do not understand why the elite don’t get it. It’s basic history. Create an unequal society where the have nots grossly outnumber the haves, and they’re going to get sick of it one day and take you out.

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Get Paid Through Peer-to-Peer Apps? Watch Out for This New Tax Rule

 

In recent years, individuals and small business owners alike have embraced the convenience of the peer-to-peer payment trend. Apps such as Venmo, PayPal, Zelle, and Cash App have skyrocketed in popularity. Whether you're splitting the bill for a night out or receiving income for a freelancing gig, these third-party platforms take the complexity out of payment processing.

However, if you're accepting commercial payments on these apps, you'll need to make sure that you're reporting this income for tax purposes. Until now, it's been up to the business owner or freelancer to include this income on your annual tax return. However, starting in 2022, these digital payment services will be required to report business earnings that total more than $600 per year to the IRS.

 

This change to tax reporting requirements is a little-known provision of the 2021 American Rescue Plan Act. Before the legislation, Venmo and other peer-to-peer platforms would only report payments to the IRS if a user had over 200 commercial transactions and more than $20,000 in payments throughout the year. The new law, which takes effect in 2022, will give the IRS access to much more detailed records of how businesses are using these popular applications to earn income.

 

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The IRS already has all your income tax data – so why do Americans still have to file their taxes?

 

Doing taxes in the U.S. is notoriously complicated and costly. And it gets even worse when there are delays and backlogs, making it especially hard to reach the Internal Revenue Service for assistance.

 

But to me this raises an important question: Why should taxpayers have to navigate the tedious, costly tax filing system at all?

 

In 1985, President Ronald Reagan promised a “return-free” tax system in which half of all Americans would never fill out a tax return again. Under the framework, taxpayers with simple returns would automatically receive a refund or a letter detailing any tax owed. Taxpayers with more complicated returns would use the system in place today.

 

In 2006, President Barack Obama’s chief economist, Austan Goolsbee, suggested a “simple return,” in which taxpayers would receive already completed tax forms for their review or correction. Goolsbee estimated his system would save taxpayers more than US$2 billion a year in tax preparation fees.

 

Though never implemented, the two proposals illustrate what we all know: No one enjoys filling out tax forms.

 

So why do we have to?

 

As an expert on the U.S. tax system, I see America’s costly and time-consuming tax reporting system as a consequence of its relationship with the commercial tax preparation industry, which lobbies Congress to maintain the status quo.

 

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2 hours ago, Elessar78 said:

I’m establishing an LLC  in 2022. What do you do for a Vehicle?


do you lease one?

 

take mileage deductions? Actual costs?

It’s been a long time since I’ve looked. But we used to always lease. 
 

The last private sector job used to be all trucks, the tax code at the time had an item related to GVW that was supposed to be for farmers. But, the way it was written allowed any business to piggyback on it. 
 

It allowed a wild amount of deductions, this may have been changed as it was six years ago. 

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Taking a preliminary look at my taxes.  Getting a boost from both the increased Child Tax Credit and back down to my "normal" income which allows me to get the March 2021 COVID payment for all family members appear to be making this a fantastic tax year at the Federal level.  We also normally end up overpaying California so hopefully... 

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My SS payments including Medicare Part B deductions means I don't pay any tax this year. I don't qualify. With the COLA raise this year, it might not be the case next year. 

 

I find it horrible that this is money we've already paid taxes on before it gets deducted from paychecks is taxable.

 

 

 

Edited by LadySkinsFan
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  • 3 weeks later...

Finally sorted out my taxes. I owe 200 when it all nets out. So, that’s perfect. 
 

effective tax rate this year:16.06%
last year: 15.47%

taking the standard deduction this year. First time in… 13 years? Missed itemizing by like 100$ this year. 

By the way. The idea that expanding the standard deduction and such simplifies your taxes is nonsense. My filing paperwork is less. But I still had to do the same amount of work and enter the same stuff to see if it adds up to more than the standard deduction. Nothing changes about that part. 

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@China

The headline doesn't match the article. I read this a few days back. Homeowner had multiple, multiple chances to pay the tax lien and the law states that seizing the home cancels out the tax lien, ie. owner no longer has a property interest in home. 

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2 hours ago, tshile said:

Finally sorted out my taxes. I owe 200 when it all nets out. So, that’s perfect. 
 

effective tax rate this year:16.06%
last year: 15.47%

taking the standard deduction this year. First time in… 13 years? Missed itemizing by like 100$ this year. 

By the way. The idea that expanding the standard deduction and such simplifies your taxes is nonsense. My filing paperwork is less. But I still had to do the same amount of work and enter the same stuff to see if it adds up to more than the standard deduction. Nothing changes about that part. 

Agreed.

I thought that it would take less time to input everything.  Wrong!   It took just as long.

Not going to bother with itemizing anymore.  Standard deduction works great for us.  (No mortage, no student loans, and not enough donations to make it worthwhile)

As long as your income & deductions remain the same, it'll get easier.

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Yeah. I guess at some point I’ll fall far enough below it. My 3 year old cost 17k in daycare and that’s a big item. Once that goes away (my 6 year old is like 3k a year) I’ll be so far below it I won’t bother itemizing. Right now we’re close. 
 

and in a couple years some deductions/credits expire and it gets worse for us. 

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2 hours ago, tshile said:

By the way. The idea that expanding the standard deduction and such simplifies your taxes is nonsense. My filing paperwork is less. But I still had to do the same amount of work and enter the same stuff to see if it adds up to more than the standard deduction. Nothing changes about that part. 

 

If you assume that one was close to the line, before, and is close to the new line, too.  

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3 minutes ago, tshile said:

Well, before I was way over the line. (They doubled the standard deduction)

 

So, your point is that "The idea that expanding the standard deduction and such simplifies your taxes is nonsense." if a person used to have deductions that were double the standard, and is now close to the standard.  

 

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Considering we paid over 10k in prop taxes last year, itemized deductions is the smart option. Still wish that 10k SALT limit penalty was per person (ans 20k for joint filers). 

 

Also I'm amazed at people still doing their stuff by hand. There are always free online options, even with itemized complex filings. 

Edited by The Evil Genius
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IRS to hire 10,000 new employees to squash tax return backlog

 

The Internal Revenue Service (IRS) plans to add 10,000 new employees to its payroll, hiring 5,000 in the next few months and an additional 5,000 by the end of next year, to tackle the backlog of tax returns and unanswered phone calls caused by the pandemic.

 

The aim is to shrink the agency’s to-do list from more than 23 million unprocessed forms and requests down to the accustomed level of about 1 million by the end of 2022.

 

Click on the link for the full article

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On 3/5/2022 at 2:10 PM, The Evil Genius said:

And yes I know as a Californian I am likely the outlier middle class who wants higher SALT limits. 

Nah, most of my deduction is related to salt and our house alone maxes is out. I’d love it to be doubled. 

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  • 1 month later...

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