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Yes, it was all taxes. $2,991 Fed (got a severance), $2,079 State and City. Ugh!
There is your answer 'you got a lump sum package settlement.What do it expect it for free or would rather not have gotten it.When i retired i got a lump sum and did a rollover.It wasn't the unemployent then that caused the tax burden as claimed.
It really sucks when you are on unemployment and owe 3K in taxes because you worked multiple jobs and not enough taxes were withheld.
Actually, when you get a refund, you're giving Uncle Sam an INTEREST FREE LOAN. So for the entire year, instead of saving that "refund amount", it goes to Uncle Sam and does what he wants with it.
Quote:
Originally Posted by Driller1
I disagree.
Our system is designed to keep the money moving.
The government would rather you invest the rest back into the system.
So, the question is what is the best way to do that???
That is what a good tax person will help with.
We are not taxed on what we make.
We are taxed on what we keep.
You are taxed on ALL INCOME. There's a deduction section where you get to subtract certain amounts like student loans, teacher expenses, business expenses (and your standard deduction and exemptions go here) are just a few example. After you subtract those deductions then you've got credits. Credits are basically what the gov't gives back to you. If your tax liability ends up being zero after all the deductions, credits will be amounts owed to you. Credits are calculated after your taxable income is figured out. Then what you paid in taxes for that year are figured in and whatever you net is what you owe or are getting back.
Actually, when you get a refund, you're giving Uncle Sam an INTEREST FREE LOAN. So for the entire year, instead of saving that "refund amount", it goes to Uncle Sam and does what he wants with it.
You are taxed on ALL INCOME. There's a deduction section where you get to subtract certain amounts like student loans, teacher expenses, business expenses (and your standard deduction and exemptions go here) are just a few example. After you subtract those deductions then you've got credits. Credits are basically what the gov't gives back to you. If your tax liability ends up being zero after all the deductions, credits will be amounts owed to you. Credits are calculated after your taxable income is figured out. Then what you paid in taxes for that year are figured in and whatever you net is what you owe or are getting back.
And that is why the front of my 1040 is "0".
I don't keep it......they don't charge me taxes.
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