Skip to comments.The AMT, Bush Tax Cuts, and my CPA Meeting (must read Vanity)
Posted on 11/30/2012 1:27:37 PM PST by taildragger
Spent more than an hour with my favorite CPA to run through some tax planning scenarios of what will happen to my family w/ the what ifs.
She tweaked or found out how to do so, i.e. turn off "The Patch" with her tax planning software. Many clients are coming in to find out what the news is....
If the AMT is fixed this year we are up 600 Fed, minus 300 ish for the State so net ahead...
If the AMT isn't fixed for 2012 we owe $2,800 ish....
If the Bush cuts lapse and AMT fixed for 2013, we owe an additional $3,800.
If Bush Tax cuts lapse and the AMT is not Patched, we owe almost $4,600.
This is real world stuff folks, spread the word, it is not a light at the end of the tunnel it is a Train.
In one year's time there will be 25% more conservatives.
A conservative is just a Liberal who got mugged.
Bring on the muggings.
PS - This is exactly why it won't happen.
Here, here... They own it. If it is to be so be it. At somepoint those watching Pro-Ball disengaged with the affairs of the Republic must stand up as men or women of Liberty or we do go off the Cliff...
You're probably right. No one wants to do the right thing...like cutting entitlement spending in half.
I tend to agree with your sentiments. But I am not sure my family will make it. I am not getting a $4,600 raise next year. Inflation is on a moonshot. We only have our debt by the tail (Job losses and paycuts over the last 4 years). We are operating on a razor edge as it is. We have reduced our lifestyle by 30% and have quit contibuting to retirement (temporarily hopefully).
For the good of our country, let’s rip this bandaid off and get on with the healing. Maybe we can fix it for my kids. But personally, this is gonna hurt, BAD!
I couldn’t agree more. While I wouldn’t relish giving the government a large amount more than my husband and I already do, it seems that this may be the only thing that wakes people up!
Also, letting the Bush cuts expire would bring many people back into the tax system that are not currently paying any Federal taxes. With a little “skin in the game” and being able to witness what THEIR MONEY is being used for by the government, they may not be as likely to vote for Obama Claus next time.
I won’t be holding my breath...
America chose the GM Model vs. the Ford /Mulally Model of of review all processes, streamline, reduce, do it smarter if you even need to do it at all, etc. etc etc.
We now are offically as dysfunctional as GM, and on the same road they are on, but we are now them in 2004....
Welfare-related spending tops $1 trillion (almost the entire annual shortfall).
Bureaucrats do not want to be laid off.
Foreign aid going to Soros-related non-governmental organizations does not want to be cut off.
If I hear the phrase “entitlement spending” one more time I may shoot myself.
The unified budget is a LIE.
SS and MC are withheld from paychecks separately to fund those programs.
About $2.5 trillion worth of Treasury Bonds were purchased with EXCESS cash from those deductions over the years.
The cash was SPENT by Congress.
This was supposed to be an “investment”.
But, in reality, it’s just so much paper. Why ?
Now, when the redemption of those is needed to fund shortfalls, corrupt politicians (both parties) want to say #$%$%^#$%#$ to Americans.
The government needs to keep selling MORE treasury bonds than the redeem as they roll over the debt.
So that is why the Trust Funds are forced to not redeem their bonds, but roll them over into new bonds.
That is the definition of a ponzi scheme.
It really makes Congress mad that they need to kick in a few billion now to cover the shortfall.
But what about that $2.5 trillion in bonds ? Can’t we sell them ?
If they are a “solid investment” we should be able to sell a few billion a year to get cash.
No, let’s have people retire older and older and older.
Let’s keep trimming out what we pay.
And let’s not cut welfare to working-age, able-bodied people. Let’s make sure all the NGOs in the middle east keep getting billions of taxpayer dollars. Let’s keep the billions being paid to Federal bureaucrats going.
Over 10% of what everyone earns is paid in. Man, did Congress pull a fast one on American citizens.
I agree, and you’re probably right.
The IRS computers (programing is a four and one half month effort on an archiac programing language for which there are few remaining programer's out there) and paper forms have all been prepared on the basis of a $74,450 exemption.
The statutory exemption at present is $45,000. If not changed prior to December 31, IRS computers will not accept electronic filings.
Refunds on early returns fund much of the economy in the first quarter of the year. There will be no refunds until the computers are rewritten and paper forms are replaced--that can no longer be done before April 15.
Further, the IRS expectation is that people who want and need the refunds, when their electronic filing is rejected, will then file paper returns to get to the head of the line for refunds. IRS no longer has the capacity to accept any real volume of paper returns.
Oh, look, here comes Congress...
Oh.... Then you MUST be “rich”.... Right?
This dovetails onto discussions with my CPA of the letter the IRS has sent Congress and the facts you mention on their "code" have been discussed before. Also discussed were the IRS forms with "reserved" held for lines since they do not know what will be from Congress. I also heard Tax Pro's may not have what they need from Congress / IRS codified in software for Pro's and or Turbo-Tax type programs re-writes until March... What say you?
LOL! Rich in life, the $ is a tool. Metaphorically, no nevermind metaphorically, Bibically they want to take away our tools. The Bible says don’t do that...
If the middle class loses its Bush tax cut, they will blame it on the Reps. According to the polls, the majority of Americans want taxes raised on the “rich.”
Democrats will not pay higher taxes due to the Bush cuts expiring. They all take the Geithner/Rangel exception deduction on their returns. (They cheat on their taxes.)
I am a seasonal Tax Preparer and we are looking at a lot of advice to be giving our clients this coming season. The nightmare is that it appears that it is going to be a moving goalpost of tax code changes. When you add the ability of government to do non-criminal ex-postfacto revisions extending tax increases back to whatever date that they think can be passed, it becomes a nightmare.
Can you stand on a patch of quicksand?
You echo what I am hearing from my CPA and my EA working for a season firm. I can't believe more here on FR are not exercised about this or are they to busy "prepping" for Obamageddon?.....
Sure, entitlements hurt, but so do the legions of government employees we will pay pensions on in near-perpetuity. Cut the entitlements people haven’t paid for first—the ones to illegals, welfare, etc., and then cut the staff administering all those programs, too. That is the machinery which guarantees every dollar put into government only returns 39 cents.