Retail numbers coming in, and Taxes

[Guest TankerHC]

According to Moody's, retailers across the board took big hits this Holiday season. After the bean counters are done counting, the Retail Association is hoping for a miracle. That miracle is that sales are flat. That is seriously not a good thing. Guess when the last BIG Holiday season for the retailers was? Not "We had a good year", the last BIG numbers were in 2006. And now 60 major retailers are looking at losing money. 

 

This was predicted by Economists for both Forbes and Money, and I am sure a couple of others. Forbes, while listing Large Retailers that wouldn't be around come the end of 2014, put it pretty simply, you can't tax an economy into economic recovery and with less disposable income and false job numbers there is no way some big retailers on the brink can survive. Seems their prediction has come true. 

 

Tell you what, I dont know how many here have done their taxes, but for us, every bit of gain we made this year was wiped out then some. I have never had a tax bill this high. Almost no change in income, and my tax bill is 30% higher. We are looking to buy a house in June, I wanted a certain size house and around 15 acres. Now we have decided, based on what we are seeing, we are going a lot smaller. I have also decided that we will be eating out less, already half or less from 2012, I'm cutting travel, and where I would spend the extra few dollars if it kept a purchase local, no longer, Ill get it wherever it is cheapest. "Were downsizing". It is not that we cannot still do it, it is that this year things got a light tighter since December, since I did my taxes, and considering that the economy is literally falling apart (And I don't care what any Politician says, I can see it, all I have to do is look at my wallet), at least until we see what happens in November, we intend not to get caught short. 

 

I am still hoping once the tax forms are updated there may be a change, but I am not overly hopeful. If Best Buy goes out of business by June as Forbes predicted last year, that will not be good. From that point on ALL of my Electronics purchases will be done online, I wont go to Radio Shack and pay 20 bucks for a cable I can get online for $2. 

 

Anyone else seeing this tax thing? I initially thought, after the shock, that I had made an error, I have redone them twice since and my wife is still asking "How can that be". 

[npgunner]

I haven't gotten any of my tax forms to do my taxes.  I moved from GA to TN so will be doing split state taxes; also got married last year.  With that said, I'm not even going to figure a "guess" of what we might owe ... I'm sure it'll be depressing.  I'll just wait till the forms come in and the man tells me the number.

[Oh Shoot]

Tell you what, I dont know how many here have done their taxes, but for us, every bit of gain we made this year was wiped out then some. I have never had a tax bill this high. Almost no change in income, and my tax bill is 30% higher.

 

EDIT: I got the wrong tax brackets for 2012, so everything else I based that on is just wrong.

 

 

Tax rates have bumped some due to first four brackets being squeezed downwardly, but just quick look doesn't seem to  account for anywhere near 30% more on same income? Just using single filing status as comparison (and quick comparison seems to show married jointly/separately about the same proportion):

 

2012:

• 10% on taxable income from $0 to $12,750, plus
• 15% on taxable income over $12,750 to $48,600, plus
• 25% on taxable income over $48,600 to $125,450, plus
• 28% on taxable income over $125,450 to $203,150, plus
• 33% on taxable income over $203,150 to $398,350, plus
• 35% on taxable income over $398,350 to $425,000, plus
• 39.6% on taxable income over $425,000.

 

2013

• 10% on taxable income from $0 to $8,925, plus
• 15% on taxable income over $8,925 to $36,250, plus
• 25% on taxable income over $36,250 to $87,850, plus
• 28% on taxable income over $87,850 to $183,250, plus
• 33% on taxable income over $183,250 to $398,350, plus
• 35% on taxable income over $398,350 to $400,000, plus
• 39.6% on taxable income over $400,000.

There is also a .9% bump in Medicare on wages and self employment and 3.8% bump on net investment income if you make over 200K single or 250K joint.

 

Everything else looks to be about the same, though. Perhaps you had some significant deductions last year you don't have this one?

 

But yeah, just the lowering of the maxes up to the 33% bracket means at least half the folks in the US will be paying more on same income as the year before, basically anyone who was in the top quarter of one of those 2012 brackets will be paying a higher rate  than last year. Of course this affects "most of us".

 

But I don't see anywhere near a third more overall. But then, math is not a forte of mine and there are likely other "gotchas" I'm not hip on.

 

- OS

Edited February 13, 2014 by Oh Shoot

[ohell]

impuestos? yo no pago impuestos federales!

[RobertNashville]

I really don't see that any of it matters. As long as we have a federal reserve continuing to pump completely worthless money into the economy and perhaps even having melted down and sold all the gold is supposed to have in safekeeping and an administration that continues to spend 45% more than it receives in taxes; this economy is going to have no choice but to collapse in on itself.

Once that happens, tax rates and about 95% of the rest of the things we worry about going to be non issues - we'll all just be trying to survive.

[Dane]

The retailers that are predicted not to make are ones that have not adapted to the changing industries. It really isn't any different than circuit city going from a great company into oblivion. If you don't adapt to the ever changing world, you die. Best buy has not adapted. As for the tax system, it is in a real need of an overhaul. The first three brackets that Oh Shoot posted don't actually pay any taxes if married with a couple of kids. I will attest that I'm in a scenario that proves the system is broken. I make between 40-60k a year, pay 0 in and get several thousand back every year. The system should be flat, everyone that makes more that10k a year pays a flat percentage and done. Get rid of the half dozen taxes on my stub, get rid of deductions and credits, and get rid of needing a CPA ti figure it all out. Sent from my iPad using Tapatalk HD

[Mark@Sea]

Real inflation is triple the published rate.  Real unemployment is at least double.  Keep that in mind when you're thinking about this.

[Lowpower]

Speaking of taxes. Approx 20% of your tickets you paid to ride on an airline are taxes and they do nothing to help the FAA maintain airworthiness of

the Airways or Airport. 20%! Remember that at election time.

 

Lp

[Guest TankerHC]

Tax rates have bumped some due to first four brackets being squeezed downwardly, but just quick look doesn't seem to  account for anywhere near 30% more on same income? Just using single filing status as comparison (and quick comparison seems to show married jointly/separately about the same proportion):

 

2012:

• 10% on taxable income from $0 to $12,750, plus
• 15% on taxable income over $12,750 to $48,600, plus
• 25% on taxable income over $48,600 to $125,450, plus
• 28% on taxable income over $125,450 to $203,150, plus
• 33% on taxable income over $203,150 to $398,350, plus
• 35% on taxable income over $398,350 to $425,000, plus
• 39.6% on taxable income over $425,000.

 

2013

• 10% on taxable income from $0 to $8,925, plus
• 15% on taxable income over $8,925 to $36,250, plus
• 25% on taxable income over $36,250 to $87,850, plus
• 28% on taxable income over $87,850 to $183,250, plus
• 33% on taxable income over $183,250 to $398,350, plus
• 35% on taxable income over $398,350 to $400,000, plus
• 39.6% on taxable income over $400,000.

There is also a .9% bump in Medicare on wages and self employment and 3.8% bump on net investment income if you make over 200K single or 250K joint.

 

Everything else looks to be about the same, though. Perhaps you had some significant deductions last year you don't have this one?

 

But yeah, just the lowering of the maxes up to the 33% bracket means at least half the folks in the US will be paying more on same income as the year before, basically anyone who was in the top quarter of one of those 2012 brackets will be paying a higher rate  than last year. Of course this affects "most of us".

 

But I don't see anywhere near a third more overall. But then, math is not a forte of mine and there are likely other "gotchas" I'm not hip on.

 

- OS

 

 

Have you done your taxes? Looking at the standard rates do not show anything. Saying that someone who makes x amount is going to pay exactly x amount leaves out about 200 different factors and is total BS. regardless how much you make, unless your paying nothing in and getting something back, you will be paying. And you do NOT have to be in the top 33 percentile in income to see your taxes go up, another bunch of  BS. Just looked it up, where Romney said 47% paid no taxes at all, he was right and those who paid nothing are not even included in that . (And there is an upper middle class and a lower middle class, it isn't just a middle class, unless it has changed since I went to school), but guess what? People who paid NO taxes last year and/or received a refund, 8% of those people are paying this year. It will probably be more than that. They aren't ever going drop that EIC are they? Someone explain to me what is EARNED when it comes to paying in little to no income taxes, then getting 6 or 8 thousand of someone else's money back?  Got a relative who does that every year. Well I earned that! Really how? I can tell you how, through someone else's labor. Here's a plan, FLAT TAX, 15%, for everyone, regardless of how much you make, every single year, no EIC, no nothing. You think this Congress, Obama is leaving anyone spared. Wait and see, I look every day to see what taxes are coming that are not included in IC. No one is spared, the only difference is where some are paying directly out of Income and handing it over to others, those others are having it removed through rises in taxes on everything else, just too stupid to notice, at least that is how the Government feels about it. I dont, because I saw something last night that I believe shows their is hope for the United States yet. 

 

All that is the old 1% argument except its now the 47%, and then that doesn't even work.

 

Someday people are going to wake up and realize we are all in this together, before we ARE all in this together.  

Edited January 12, 2014 by TankerHC

[Guest 6.8 AR]

Tanker, the same argument can be applied here, as to the conservative thing, which is when you get enough people to agree on

some alternative tax system you can fix things. Others, including myself, who like the fair tax, instead, will tend to shy away from

Marx's view of taxation. The state of Tennessee doesn't have an income tax and it is doing fine. We had to fight a Republican to

keep it out a few years ago, too. I won't get too deep into a tax argument because there are too many different opinions involved,

all of which have merit, but haven't been worked completely out.

 

I completely agree that everyone should have some skin in the game, but be careful how you say it. I didn't make enough income

last year to be taxed.That happens. Fair taxes and schemes like it have mechanisms that include making it less taxing on those

in lower socioeconomic brackets, just like the income tax, however it is more honest in its approach. And I think you know how I

hate welfare and all the associated programs. 

 

One of the biggest mistakes this country made was the income tax amendment. It legitimized politicians to change rates and play

God with classes by rewarding and punishing them. A Fair version of consumption taxation wouldn't come close to Karl Marx's

wet dream. It may be a generation or two down the pike, though. Too many like the way we have become slaves.

[Guest TankerHC]

Tanker, the same argument can be applied here, as to the conservative thing, which is when you get enough people to agree on

some alternative tax system you can fix things. Others, including myself, who like the fair tax, instead, will tend to shy away from

Marx's view of taxation. The state of Tennessee doesn't have an income tax and it is doing fine. We had to fight a Republican to

keep it out a few years ago, too. I won't get too deep into a tax argument because there are too many different opinions involved,

all of which have merit, but haven't been worked completely out.

 

I completely agree that everyone should have some skin in the game, but be careful how you say it. I didn't make enough income

last year to be taxed.That happens. Fair taxes and schemes like it have mechanisms that include making it less taxing on those

in lower socioeconomic brackets, just like the income tax, however it is more honest in its approach. And I think you know how I

hate welfare and all the associated programs. 

 

One of the biggest mistakes this country made was the income tax amendment. It legitimized politicians to change rates and play

God with classes by rewarding and punishing them. A Fair version of consumption taxation wouldn't come close to Karl Marx's

wet dream. It may be a generation or two down the pike, though. Too many like the way we have become slaves.

 

I agree completely. But how do you do it? And what, if we continue the way we are going will be the end result?. Take my word for it, I don't begrudge anyone a dollar. And I have relatives who are qualified to work and keep seeing them getting laid off. Just last night I was at a family function with two of them, neither of them has been employed for over 2 years, and I know they have been looking because I have taken them to apply for jobs over and over. Tennessee absolutely has a tax, it is just not an "income tax", but it is certainly a tax on income. There is a sales and use tax that is one of the highest in the country, there is a consumer use tax so if you go somewhere and buy something, your not saving any taxes if there is no tax required in that State because as soon as you bring it into this state it is taxed, right now Tennessee taxes more services than any other State in the Union and has since 2000. Yes, there is no State Income Tax, just everything else is taxed.

 

The way I am seeing it no one has a real solution. Left, right and Center it is tax tax tax, for the Libertarians some of them its a flat tax, others its a fair tax. A graduated fair tax would be absolutely fair. If you can call the Government taking the peoples money then wasting it on BS pet projects and supporting foreign ventures fair at all.  And I'm not talking about war, Im talking about the garbage I read in bills daily. Why are American taxpayers paying for a defense budget that is partially being used to fund the health of 5th world African dictatorships while ,Americans themselves are being additionally taxed to pay for the healthcare of people who cant work because tax and regulation on small business is so high that business cannot grow so ther are no jobs and taxes on big businesses are running them out of the Country?

 

I dont mind paying taxes, even thought there is no law that says I HAVE to pay any Federal Income Tax, it pays for things I use. Or used to, now its simply tax for tax sake and money for Politicians to spend to make themselves feel better and win elections. At the same time Americans fall for that crap that there is a 1% then there is US, they pay no attention at all to the fact that the middle class numbers now drop down to $24,000 per year according to the Federal Government. Someone who makes $24,000 per year is middle class? Well we must now officially be one of the poorest nations on Earth and also Officially a 2nd World Country and on the fast track to 3rd.

 

Im not falling for the collective bull. I've seen the end result first hand. I'm not interested in that misery. 

Edited January 12, 2014 by TankerHC

[Guest 6.8 AR]

"Tennessee absolutely has a tax, it is just not an "income tax", but it is certainly a tax on income. There is a sales and use tax that is one of the highest in the country, there is a consumer use tax so if you go somewhere and buy something, your not saving any taxes if there is no tax required in that State because as soon as you bring it into this state it is taxed, right now Tennessee taxes more services than any other State in the Union and has since 2000. Yes, there is no State Income Tax, just everything else is taxed."

 

Now you're just mincing words. Of course we have taxation in this state, but would you rather it be an income tax? You pay taxes in TN based on

what you do, not how much you make. That may not be the case in all of the taxation here, but it most certainly is more fair than instituting a state

income tax where you are chaining your rights to a tax system that will go nowhere but up, like New York and other states. and, yes, sales or use

taxes can be raised or lowered, but that is a function of how we watch and elect our own reps in the state. That can be accomplished better than

the federal government.

 

"I dont mind paying taxes, even thought there is no law that says I HAVE to pay any Federal Income Tax, it pays for things I use."

 

Don't kid yourself into thinking that is the case. Only the name is "Voluntary".

 

The taxation problem will only go away when we elect the right people to congress who will actually cut budgets and quit the perpetual giveaway

of our national treasure.

 

Most of us have seen it firsthand. Many choose to hide their heads in the sand. I agree.

 

When you put the word "Fair" next to the word "tax", that is the problem. There is no such thing as a fair tax. I said that, even though I would like to

see the Fair Tax replace the income tax, any day of the week. All taxation is punitive.

[Guest TankerHC]

"Tennessee absolutely has a tax, it is just not an "income tax", but it is certainly a tax on income. There is a sales and use tax that is one of the highest in the country, there is a consumer use tax so if you go somewhere and buy something, your not saving any taxes if there is no tax required in that State because as soon as you bring it into this state it is taxed, right now Tennessee taxes more services than any other State in the Union and has since 2000. Yes, there is no State Income Tax, just everything else is taxed."

 

Now you're just mincing words. Of course we have taxation in this state, but would you rather it be an income tax? You pay taxes in TN based on

what you do, not how much you make. That may not be the case in all of the taxation here, but it most certainly is more fair than instituting a state

income tax where you are chaining your rights to a tax system that will go nowhere but up, like New York and other states. and, yes, sales or use

taxes can be raised or lowered, but that is a function of how we watch and elect our own reps in the state. That can be accomplished better than

the federal government.

 

"I dont mind paying taxes, even thought there is no law that says I HAVE to pay any Federal Income Tax, it pays for things I use."

 

Don't kid yourself into thinking that is the case. Only the name is "Voluntary".

 

The taxation problem will only go away when we elect the right people to congress who will actually cut budgets and quit the perpetual giveaway

of our national treasure.

 

Most of us have seen it firsthand. Many choose to hide their heads in the sand. I agree.

 

When you put the word "Fair" next to the word "tax", that is the problem. There is no such thing as a fair tax. I said that, even though I would like to

see the Fair Tax replace the income tax, any day of the week. All taxation is punitive.

 

That isnt my point. The point is whether it is a State Income Tax or a Tax on everything else, its still tax and it is going somewhere. By saying TN doesnt have a State Income Tax and ignoring all the other taxes, which make up what would be a state income tax and then some, is sugar coating it. I have lived in 11 different States, including more than one with no State Income tax. (Texas and Florida). No State income Tax, but everything else sure cost more. Regardless of the method the State or the Fed uses to take peoples money through tax, your still paying taxes. When it comes down to the amount of taxes paid on almost everything, the better deal usually ends up being a % for a State Tax. Either way, they are going to get your money. 

 

The highest tax rate for the highest state is California at 74%, which is why Millionaires are leaving in droves and even giving up their US Citizenship, including plenty of Obama supporters. Look closely at daily spending and see how far behind the average rate TN is. TN is ranked 20th in STATE tax out of 50, without having a State Income Tax. State Taxes per capita, every man, woman and child, is $1695 as of latest numbers. That was 2010-2011, its certainly going to be more now. That is according to the IRS State Tax Collection Tables. 

 

As far as Voluntary on taxes, there is no law saying any American has to pay a Federal Income Tax, but, they will throw you in jail for not doing so. I know that. Which is why I "begrudgingly" pay my taxes, as most people I know and see do. 

 

And I am telling you, regardless of what those tables oh shoot posted say, taxes are way up over last year. You dont have to be rich or wealthy or even middle class to be screwed, take my word for it. If I were I certainly wouldnt be trying to finagle a deal to get that CW Rifle. Id own a room full of them. 

 

I understand what oh shoot is saying. But the last paragraph seems to insinuate that Im in that tax bracket he is talking about....I wish. But maybe I took that wrong. There is another thread on here that popped up last week, I was going to jump into. I am not in that tax bracket, but I have stock. Thing is I keep hearing people tell me they cant get into the stock market "Where everyone is getting rich" because they dont have that kind of money. Thats not the case at all, people who invest know all you have to do is open an account, find one that doesnt charge high for trades and you can invest for 20 bucks a month, or every other month or once a year if you want to. 

 

Ill give you one example, and I have been doing this for years. I watched the Facebook stock during the IPO. Crazy and way overvalued. I follow Motley Fool and Forbes, I watched until they said BUY. And, I didnt have any money to buy and I didnt want to move anything because everything they said that I held was a hold. So I got on here and sold one of my 1911's, took that money, put it in my Fidelity account and bought at 19.25.  Know what it is today? Right now, 57.94. Thats six months, FB isnt going anywhere whether anyone believes it or not. 

 

I dont touch that stuff either, unless Forbes or Motley Fool says so. Same with other stock I have bought. One, Copart, has sat so long it was considered dormant and I got an email last week if I didnt do something it would be considered abandoned. So I had to do something.

 

That is where my tax burden is increasing. The Federal Government is TRYING to gut the small investor. And believe it, I am a SMALL investor. I dont know if it is happening to the big guys, but it is certainly happening to the tiny investors. no wonder our grandparents stuck money in the mattresses and old Piano's. But the tax rates in the charts, are not the tax rates. 

 

One thing I do know, when everything else tanks, Tech will still be up and will be the real reason for any recovery. And the members here prove it every couple of weeks. Because I know what Motley Fool, Forbes and Money are all saying to do. Ill just watch you guys along with them, and Ill know when to buy.Might have to sell a gun or something else to do it. But I would be dumb not to.  

Edited January 12, 2014 by TankerHC

[Guest 6.8 AR]

I don't follow stocks so I won't comment, and you are probably right. The only way taxes will go down is when spending goes down.

That means a lot of anti-spending, anti-taxing reps will need to be put in office. Don't know what else to say. Everything else is moot.

[Oh Shoot]

Have you done your taxes? Looking at the standard rates do not show anything. Saying that someone who makes x amount is going to pay exactly x amount leaves out about 200 different factors and is total BS. regardless how much you make, unless your paying nothing in and getting something back, you will be paying. And you do NOT have to be in the top 33 percentile in income to see your taxes go up, another bunch of  BS.

 

I did not say you had to be in the top 33% of income earners to have your taxes go up. Quite the opposite. Look at the frigging tables.

 

I said that everyone who was in the top third or so of any the first four 2012 brackets will have their taxes go up in 2013. This includes anyone making $203,150 or less, which includes all brackets in the < 33% tax brackets.

 

In short, yes, anyone making the same income this year who was in the upper third of their tax bracket last year will pay more taxes on the same income this year -- but not anywhere near 30% more.

 

The biggest hit are the working stiffs who were paying 15% last year and now will pay 25%. And the cut off is only $36,250. If you made $36,250 - $48,600,  last year, you paid 15%, this year 25%. Wow, instant 10% increase!. So much for "everyone paying their fair share", since the tables for upper incomers was barely tweaked.

 

No, I haven't done my taxes this year, but have paid quarterly estimated taxes figured on the same income as 2012, and they are almost exactly the same. But my taxable income was below the 15% bracket's change, so didn't get kicked into the 25% bracket this year. Also, none of my income was from wages or self-employment, so no Medicare taxes at all, let alone the increase,  and of course didn't hit anywhere in the same universe of having to pay the additional 3.8% investment income tax.

 

- OS

Edited January 12, 2014 by Oh Shoot

[Guest Lester Weevils]

OS, the bracket adjustments have to be the result of congressional action (including the "conservative" dominated house)? Obammy can't just adjust the brackets himself?

Am just curious, was not aware of the brackets downward adjusted. Have you read any congresscritters explaining the rationale for this tax increase on the majority? Salary inflation hasn't been rapid enough to dump the working poor into higher brackets "naturally", so they have to lower the brackets?

The chart doesn't look like high rollers are getting hit too hard.

[Oh Shoot]

OS, the bracket adjustments have to be the result of congressional action (including the "conservative" dominated house)? Obammy can't just adjust the brackets himself?

Am just curious, was not aware of the brackets downward adjusted. Have you read any congresscritters explaining the rationale for this tax increase on the majority? Salary inflation hasn't been rapid enough to dump the working poor into higher brackets "naturally", so they have to lower the brackets?

The chart doesn't look like high rollers are getting hit too hard.

 

I don't know the ins and outs of all that Lester, just looked up the brackets for 2012-13. IRS "announces" them first of the tax year, so they are obviously set beforehand, but admit I don't know the congressional procedure for that, or how far ahead they are "enacted" or whatever.

 

Sure seems clear to me though that folks with taxable incomes of $36,251 to $125,451 got slammed. And yeah, how that could be anything but overall more detrimental to the economy seems rather obvious to me.

 

Seems the liberal socialistic "income redistribution" and "income inequality" thangs would make Marx and Engels blush in their poor implementation. Then again, even in total communism, there are still the untouchable "haves" I guess, who don't have to kick in much to support all the "have-nots".

 

Then again, to be fair, BHO has wanted to "tax the rich" disproportionally, and the GOP has thwarted that, and here's the outcome, perfectly suited to the elitist view of those in power from either party, eh?

 

We can just eat cake, after all.

 

- OS

Edited January 12, 2014 by Oh Shoot

[Guest 6.8 AR]

I'm glad I didn't make much, last year, if only for that one reason, Mac. Is disability income taxable? I haven't looked any of that stuff up.

If it is, I'm in the swamp of taxation like everyone else.

[Guest TankerHC]

I did not say you had to be in the top 33% of income earners to have your taxes go up. Quite the opposite. Look at the frigging tables.

 

I said that everyone who was in the top third or so of any the first four 2012 brackets will have their taxes go up in 2013. This includes anyone making $203,150 or less, which includes all brackets in the < 33% tax brackets.

 

In short, yes, anyone making the same income this year who was in the upper third of their tax bracket last year will pay more taxes on the same income this year -- but not anywhere near 30% more.

 

The biggest hit are the working stiffs who were paying 15% last year and now will pay 25%. And the cut off is only $36,250. If you made $36,250 - $48,600,  last year, you paid 15%, this year 25%. Wow, instant 10% increase!. So much for "everyone paying their fair share", since the tables for upper incomers was barely tweaked.

 

No, I haven't done my taxes this year, but have paid quarterly estimated taxes figured on the same income as 2012, and they are almost exactly the same. But my taxable income was below the 15% bracket's change, so didn't get kicked into the 25% bracket this year. Also, none of my income was from wages or self-employment, so no Medicare taxes at all, let alone the increase,  and of course didn't hit anywhere in the same universe of having to pay the additional 3.8% investment income tax.

 

- OS

 

Yea, I know. I thought you were insinuating I was rich or something. I could only dream. Someone here in TN is, a TN resident won that 61 million last week. Which one of you is it?

[Guest TankerHC]

I'm glad I didn't make much, last year, if only for that one reason, Mac. Is disability income taxable? I haven't looked any of that stuff up.

If it is, I'm in the swamp of taxation like everyone else.

 

I am glad you asked that question. I think you may have just saved me a bunch on taxes, at least I hope so. I am 100% P&T with CC  (For 22 injuries, including a TBI, in case anyone might think I am faking it). There used to be a threshold that made 50% taxable. I have been adding that to my taxes for 4 years just because. When you asked the question this is what I came across on the IRS website.

 

VA Disability Benefits  
Do not include disability benefits you receive from the U.S. Department of Veterans Affairs (VA) in your gross income. In particular some of the payments which are considered disability benefits include:

• Disability compensation and pension payments for disabilities paid either to veterans or their families,
• Grants for homes designed for wheelchair living,
• Grants for motor vehicles for veterans who lost their sight or the use of their limbs, or
• Benefits under a dependent-care assistance pro

 

Damn, if I go back I may even get a refund for the first time in 20 years. 

 

Thanks

 

Edit: Now that I think about it, I need to call the IRS tomorrow, I have been including that since 2001. Daaaannnnngggg...

Edited January 12, 2014 by TankerHC

[Oh Shoot]

I'm glad I didn't make much, last year, if only for that one reason, Mac. Is disability income taxable? I haven't looked any of that stuff up.

If it is, I'm in the swamp of taxation like everyone else.

 

I let TaxAct tell me those things, don't know them off top of head. :)

 

Quick glance at http://www.irs.gov/pub/irs-pdf/p525.pdf seems to indicate SS and military are not, but unclear about "private" disability payments, like from railroad?

 

....

Edit: Now that I think about it, I need to call the IRS tomorrow, I have been including that since 2001. Daaaannnnngggg...

 

Sorry to inform you that you can only do amended federal returns for refunds for last three years (same for most state returns too, seems). Matter of fact it's three years from when taxes were due, so do it before April deadline this year or you  could only go back two.

 

The decent 'puter tax proggies won't really let you put in income that shouldn't be included,  if you go step by step through them, so you must have just been winging the returns on paper all this time, or using a less than stellar tax person?

 

Can tell you the latter happened to me as far as TN state income taxes, and once I was on my own (retired, no more complicated biz stuff), got hip that I had way overpaid them, and did indeed file 3 years of state amended returns -- wasn't huge, but I did get back something like 1500 clams. But lost maybe double that from previous ones.

 

- OS

Edited January 13, 2014 by Oh Shoot

[Guest TankerHC]

I let TaxAct tell me those things, don't know them off top of head. :)

 

Quick glance at http://www.irs.gov/pub/irs-pdf/p525.pdf seems to indicate SS and military are not, but unclear about "private" disability payments, like from railroad?

 

 

Sorry to inform you that you can only do amended returns for refunds for last three years. Matter of fact it's three years from when taxes were due, so do it before April deadline this year or you  could only go back two.

 

- OS

 

 

Yes I know. Except for people in my position. If you receive Combat Related Special Compensation or Concurrent Receipt, you can file an amended return going back to the date of of the increase in P&T and any years in between. For me that is five years. It is called a Special Tax Consideration. I did not know that, and those forms are not in any of the software I have ever used.  On that TaxAct thing, I used to use H&R Block, it asks for your VA DA amount and adds it to the gross. Right now I am in the middle of redoing them, I am using Turbo and it is asking for the same thing. I know that it is non taxable on receipt, but the IRS website says not to add it to gross, why is the software asking for it? I dont know. I also have not heard anything about these other Special Veterans Tax Considerations, none of that is even in the pro software. Looks like I need to be having someone else do my taxes that is actually informed on Veterans tax issues. 

[Guest TankerHC]

I never winged it. When I retired from the Army and went into civilian work my income increased. So I began using my wife's accountant in McComb, MS. I doubt he screwed anything up. When I started contracting it considerably increased, he did all my taxes, I didnt even bother doing anything except putting them in an envelope and sending them to him. When I finally ended up 100% and unable to work I was rated IU. I was done, and it does suck of which I am sure many are aware. Started doing my taxes with Taxact, then H&R Block and started last year with Turbo. Because I stopped using an accountant, I am sure it will only take me back to the year after I began using off the shelf software, the same year I got that VA IU rating. 

 

But I have figured it out. And would not have had I not posted the OP and Oh Shoot replied, so I want to publicly thank Oh shoot. 

 

Thanks

[Guest 6.8 AR]

It's probably like SSI since it replaces SSI for railroad employees.

[Guest TankerHC]

Almost forgot, thanks to 6.8 for the same thing.