Summertime fun

[JG EA]

With all the worries looming on the horizon, I am going to share two questions I got recently from a client to brighten the day.

1." My friend doesn't pay any taxes - is it because he does his tax return himself"?
(Ignoring the obvious slam - I give a "depends on the circumstances" answer and then get question #2.)

2. "I don't think I should be paying any taxes for the little bit of money I make - why am I being taxed? (She makes $70k plus Social Security.) And you taxed me on the little IRA distribution I received ($8000) but they had already taken the taxes out!" (I, of course, explained withholdings and filing requirements, but I think her friend must do a better job on tax preparation.)

[JohnH]

Obviously you need to get updated on current tax law. Find the name of the beautician school her friend matriculated from and enroll immediately for some remedial education.

It seems illogical to me as well that anyone making only $70K plus Social Security should pay any taxes - they should be getting a big refund. Doesn't everybody?

[joanmcq]

I'll trade her 'little bit' for my 'little bit'!

Of course my tax prep is much more complicated (a lot of 'little bits' from a whole bunch of sources) so you would have to charge her much more.

[Burke]

Obviously you need to get updated on current tax law. Find the name of the beautician school her friend matriculated from and enroll immediately for some remedial education.

It seems illogical to me as well that anyone making only $70K plus Social Security should pay any taxes - they should be getting a big refund. Doesn't everybody?

I have one who feels the same way because they are "retired." Why should anyone pay after they retire? Only because they have state teachers' pensions, and social security, and part-time jobs, and investments, and gross well over $100K every year.

[Black Bart]

One of my favorites is "How old do I have to be before I quit paying these taxes?"

[Bees Knees]

One of my favorites is "How old do I have to be before I quit paying these taxes?"

A: Up to 1 year, 4 months, and 15 days after you die.

[JohnH]

I have one who feels the same way because they are "retired." Why should anyone pay after they retire? Only because they have state teachers' pensions, and social security, and part-time jobs, and investments, and gross well over $100K every year.

I hear that every now and again as well. I tell them I hope I have their problem after I retire.

Having enough income to be required to pay taxes in retirement is a blessing (no matter where one may stand politically with respect to whether taxes are too high or too low). Most of them have come around - they still grouse about their tax bill, but they grudgingly admit that there are plenty of people their age who owe no taxes because they have very modest incomes and zero prospects for that situation to change.

[Burke]

One of my favorites is "How old do I have to be before I quit paying these taxes?"

I get that all the time! Most, well a lot, of people have the notion they do not have to pay after 70. I think it stems from the old SS rule about earnings not counting after that date. They know they heard it somewhere. I also surprised a relative once when he told me his son did not have to pay taxes because he was under 18. That son had a thriving landscaping business and made a ton of money. (for a kid.)

[Mo Sheets]

My all-time favorite....

was from my son, no less, when he was about 19 years old. I told him he was going to owe taxes this year,

HE SAID: "Well, then I don't want to file a return!"

I SAID: "Really..... NOT AN OPTION"

Yeah, we had a LONG talk after that one. I guess all those dinner time conversations missed the mark! Now that he has grown up, he understands how things work. It really is nice that both kids now call ahead BEFORE they do something to find out the tax implications. I've fulfilled my mission as a mother....



Mo