Ask the Taxman, '07 Edition!

Discussion in 'Finance, Investing & Economy' started by wcharriscpa, Jan 4, 2007.

  1. striker

    striker Member+

    Aug 4, 1999
    Thanks for the info. However, I am still confused about the part regarding "based on the value of the auto". How can I find out how much of my auto registration fee is based on the value of my auto? I don't recall seeing that info on my auto registration card.
     
  2. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    If there's no indication on your registration application (or invoice, or whatever), call whichever department imposes the tax. Where I live, that would be the county tax assessor.

    Or you might be able to find the info online.
     
  3. Footer Phooter

    Jul 23, 2000
    Falls Church, VA

    I think most financial advisors would tell you that you're crazy to pay off your entire mortage, when you could invest that in the market, especially given current interest rates. If you've got a 15 or 30 year horizon, I'd throw that money into an index fund or two and let it grow.

    However, the 6% or so you'd save by paying cash is risk-free. (I'd still get the mortgage, but would understand if you just paid off the house entirely)
     
  4. Amores Perros

    Amores Perros Member

    Jun 15, 2006
    Kuala Lumpur
    Club:
    DC United
    Nat'l Team:
    United States
    On that note. :)

    Why do DC residents have to pay Federal taxes if we don't have federal representation? What's the legal precedent behind that? I thought the whole point of independence and our constitution and democracy was that taxation without representation is grounds for revolt/revolution.

    A few of my family members live in Puerto Rico where they don't pay federal taxes because they don't have representation. What's the difference with DC?
     
  5. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    Save it for the politics forum, please.
     
  6. Amores Perros

    Amores Perros Member

    Jun 15, 2006
    Kuala Lumpur
    Club:
    DC United
    Nat'l Team:
    United States
    I know the political answer and debate but I don't know the legal side of the taxation part.
     
  7. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
  8. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    http://www.irs.gov/newsroom/article/0,,id=169357,00.html

     
  9. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    eFile rocks... last year, I had to mail in a signature document, but this year I didn't.

    Sachin
     
  10. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    U.S. Government Sues Jackson Hewitt Tax Preparation Franchises in Four States, Alleging Pervasive Fraud

     
  11. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
  12. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
  13. MLSNHTOWN

    MLSNHTOWN Member+

    Oct 27, 1999
    Houston, TX
    If I do not set up a traditional (not eligible for Roth as I make too much) IRA this year, my return should be about $150. Assuming I set up an IRA and put $4000 in it....how much tax savings should that give me?

    Is it just $4000 * tax rate for that year = amount of taxes I should save?

    Just wanted to double check what my CPA/aunt said as it conflicts with what others have said.
     
  14. harrylee773

    harrylee773 Member+

    Jul 28, 2004
    Chicago
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Assuming that you can deduct the full $4,000 (there are limits based on age and/or income), then yes- although your highest tax rate could change due to the reduction in income. The IRA deduction is an 'above the line' deduction that would reduce your adjusted gross income by the amount deducted. So if your contribution is $4,000 and your highest tax rate is 25%, your refund should increase by $1,000. The only exception (in the stated scenario) would be if your income was close enough to the 15% tax rate that the contribution deduction caused it to fall into that range. In that case you would multiply the amount over the 15% threshold by 25% and the amount under by 15% and add those sums. Hope this helps more than it confuses.
     
  15. MLSNHTOWN

    MLSNHTOWN Member+

    Oct 27, 1999
    Houston, TX
    Got it. This all makes perfect sense and is in line with what I was told. Let me ask this, I am 30 and I am single and made about 95K last year. No company 401K or retirement plan at all. So there shouldn't be any limits other than the 4K standard IRA contribution this year (which I think also goes up to 5K next year right?)
     
  16. harrylee773

    harrylee773 Member+

    Jul 28, 2004
    Chicago
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Nope, there shouldn't be any limits other than the 4k (the income limits kick in for those eligible under an employer plan) and yes, it will go up to 5k next year. The clock is ticking, so get off of BigSoccer and get that return finished- note that you can claim the 4k deduction on your taxes before you actually make the contribution, so long as the contribution is made before this year's deadline. Also, be sure to inform your IRA trustee that the contribution is for tax year 2006 so that it doesn't get reported as being for 2007 (thanks to irs.gov for those last tips).
     
  17. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    And a little tip for those with a SEP....file an extension, and then you don't have to make your '06 contribution until October 15, 2007.

    You could actually use your refund to make your SEP contribution.
     
  18. Stogey23

    Stogey23 Member+

    Dec 12, 1998
    San Diego, CA
    Are individual tax records really public information?

    If so, how would I obtain one???
     
  19. Stogey23

    Stogey23 Member+

    Dec 12, 1998
    San Diego, CA
  20. chaski

    chaski Moderator
    Staff Member

    Mar 20, 2000
    Itchycoo Park
    Club:
    Lisburn Distillery FC
    Nat'l Team:
    American Samoa
    No. See 26 U.S.C. Sec. 6103.
     
  21. Stogey23

    Stogey23 Member+

    Dec 12, 1998
    San Diego, CA
    Ok, thanks!
     
  22. BigGuy

    BigGuy Red Card

    Apr 12, 2007
    I just had another Grand child if you live in NY State do yourself a favor open up a 529 for your children's college education.

    Don't get it through a bank

    get it through

    http://nysaves.uii.upromise.com/

    File jointly you can take off your state taxes as much as 10,000 a year. The child can live in another state,

    You can open one up for apx 50 dollars and then you can put what you want in after it. You can even elect as little as 50 a month to be take automaticly out of your checking each month or a lot more.

    It is a good state tax break.

    It is also free of Federal and state tax at the end when you use it for the childs college.


    It is a win win situation at least in NYS if you live in the state,
     
  23. wcharriscpa

    wcharriscpa Member

    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
  24. capitalist

    capitalist New Member

    Nov 13, 2004
    Agreed. NY's 529 plan is must for anyone with children/grandchildren.
     
  25. VFish

    VFish Member+

    Jan 7, 2001
    Atlanta, GA
    Club:
    Atlanta

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