Taxes - Top things to know

5/23/2013

10 Comments

 
After reading the assignment Taxes.doc, write a 1-paragraph summary of the top 10 things you need to know about taxes.
10 Comments
Joe Kempsey
5/22/2013 11:37:39 pm

1.When you add up all of your income and the total is less than $200,000, you will not be subject to this tax.

2.The 3.8% tax will never be collected as a transfer tax

3.You’ll never pay this tax when you sell your home

4.If you sell your principal residence, you will still receive the full benefit of the $250,000

5.The tax applies to other types of investment income, not just real estate.

6.The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7.In any particular year, if you have no income from capital gains, rents, interest or dividends, you’ll never pay this tax, even if you have millions of dollars of other types of income.

8.The formula that determines the amount of 3.8% tax due will always protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax.

9.It’s true that investment income from rents on an investment property could be subject to the 3.8% tax.

10.The tax was enacted along with the health care legislation in 2010.

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Tyler Alexander
5/23/2013 11:14:22 pm

If you are getting a big refund each year you are having too much withheld from your paycheck. But if you have too little withheld you will get charged for an underpayment penalty. Not all of the money in your income is taxable because some of your money falls in different brackets. You can reduce being audited you should fill out your return completely, correctly and on time every year. The income you can be taxed on is your AGI. The less you have of taxable income the less you have to owe in taxes.

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Sean mahoney
5/23/2013 11:26:59 pm


After reading the Top Things to Know about Taxes, I have learned about some important tips and information. One thing is that if your refund is big, your paycheck is too small. Another is if you have too little withheld, you will be charged. Also, not every dollar of your taxable income is taxed at the same rate. Your combined tax bracket determines how much tax you'll owe on income from investments such as CDs and money market funds. You must pay the tax you owe by April 15 or you’ll receive a late penalty. Also, trying to reduce your chance of being audited is a good idea. The less your taxable income, the less you will be taxed and the les tax you’ll owe. Lastly, a credit is better than a deduction.

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Haley Giaramita
5/23/2013 11:28:59 pm

There are many important things to know about managing your money for taxes. Some reasons you would be losing money or penalized to owe extra is if you file your tax return late, if you have too little withheld, or if you are having too much withheld. To save money, you can fill out your return completely, correctly, and on time every year to reduce your chance of an audit, take advantages of tax breaks, and gain deductions or credits to reduce the amount of money you must pay. A way to determine the tax return cost is that your marginal tax rate is the tax bracket at which the last portion of your income is taxed, which is the highest, your combined bracket is the sum of your top federal tax rate and your top state income tax rate, and your taxable income is your AGI minus exemptions and deductions. If you follow these important facts about filing taxes, you will be much more efficient in paying them and saving money.

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Nicholas DeFelice
5/23/2013 11:42:28 pm

You can get too much or too little withheld from your pay check. Not every dollar of your taxable income is taxed at the same rate. How much tax you'll owe on income from investments is determined by your combined tax bracket. If you file a return but don’t pay your taxes you get a late payment penalty. You can reduce your chances of being audited. Your adjusted gross income is your total income minus certain deductions. Your taxable income is your AGI minus exemptions and deductions. A credit is better than a deduction.

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Cara Martin
5/23/2013 11:42:54 pm

Cara Martin
Ms. Edwards
Career Explorations
May 24, 2013
Taxes Summary
After reading the taxes document I learned many new and important things about taxes. One thing I learned was that a tax refund exists because the government takes out a “free loan” for each paycheck. If too much money is not given, you can be charged an underpayment. Depending upon, how the money is earned and how the money is spent, the tax rate differs. The combined bracket is the sum of the marginal federal tax rate and top state income tax rate; it is personalized for each person and each situation. April 15, or tax day marks the end of the tax season, all taxes must be done by the 15th, or else there may be a penalty. It is possible to reduce the chances of being auteted, by being on time annually. Entrepreneurs will have higher income investment and property sale tax. AGI stands for adjusted gross income, tax. AGI is a person’s taxable money. Credit is a dollar-for-dollar reduction of the taxes you owe.

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Tim Carstensen
5/23/2013 11:45:16 pm

Too big of a tax refund and too small is also bad. Not all of your tax income is taxed at the same rate because the money can fall into different brackets. When these brackets are combined they determine how much tax you will owe on income. If you pay your tax return before April 15th then you do not have to pay the taxes you owe and this will decrease your chances of being audited. If you are self-employed then you should pay your taxes by April, June, Sept., and Jan. 15th. Your AGI is your total income minus deductions and your taxable income is your AGI minus deductions and exemptions. And a credit is better than one of those deductions from your AGI.

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Ryan Murray
6/2/2013 11:24:40 pm

If you get a big refund each year, you're having too much withheld from your paycheck. If you have too little withheld, you may be charged an underpayment penalty. Not every dollar of your taxable income is taxed at the same rate. Your combined tax bracket determines how much tax you'll owe on income from investments such as CDs and money market funds. If you file your return by April 15, but don't pay the tax you owe, you may receive a late payment penalty. You can reduce your chances of being audited. You should pay estimated taxes if you're self-employed; expect hefty investment income or profits from a property sale; or if you don't have enough taxes withheld to cover the taxes you'll owe on non-wage-related income. Your adjusted gross income (AGI) is your total income minus certain "above the line" deductions such as deductible IRA contributions, alimony payments, or health savings account contributions. Your taxable income is your AGI minus exemptions and deductions. A credit is better than a deduction.

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Sandra Wilson
6/2/2013 11:25:06 pm

As an adult, taxes are an important part of life. It is important for your taxes to be the right amount. If there are high taxes in a paycheck, a big tax refund is given; however that person is unwillingly providing the government with an interest free loan. If the taxes are low, an underpayment penalty could be charged. Paying the taxes on time and correctly is important to reduce the risk of being audited and also having big penalty payments. Being interested and taking advantage of tax breaks are important to reduce the taxes owed. The last important thing to know about taxes is that a credit is more beneficial than a deduction. A deduction reduces the amount of taxes by a percent per dollar. Credits reduce the amount of taxes dollar by dollar, therefore credit allows for a greater reduction. It is important to pay attention to tax money.

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Mina Surprenant
6/2/2013 11:31:27 pm

As you get older, taxes become a more important part of your life. It is important to know everything about taxes; even the little things. For example, not all tax dollars are taxed at the same rate. Your combined tax bracket determines how you will owe on income. If you are self-employed, you should pay estimated taxes. It is in your best interest to take advantage of tax breaks when you can because the less your taxable income, the less in taxes you’ll own. Almost every break has its own AGI limit. Your AGI primarily determines whether or not you are eligible for taxes. It is very important to know about taxes for your own personal interests and so that you can pay taxes while knowing what is going on rather than being cheated by the government.

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