US Federal Income Taxes

Well, I just did my taxes, and I'm happy to say that I'm getting back a great wodge of cash. Much more than my unemployment ``benefits''. Anyway, I thought I'd recommend, for those of you that file US Federal Income Tax returns, a program called TaxACT. It's totally free for generating your federal returns, and they'll do electronic filing of those returns for $8. I've used them and their electronic filing for the last three years and have been very satisfied with their service. They also have state returns generation and electronic filing, but they are $13 and $5 more, respectively. I've never had great cause to bother for the state, but I imagine that it's as quality as the rest of their program. Just so you know, my mother usually buys TurboTax every year, and I get to do her taxes as well (which are actually much more complicated than mine). I've done her taxes with both programs for the last three years, and I've found no significant fiscal differences for two of those years. For one year, TaxACT made probably a 10% difference to her favor. The only ``advantage'' I've ever seen TurboTax have is those annoying videos of tax professionals who don't tell you anything more than the written instructions. So I wholeheartedly recommend TaxACT. Let's put those Quicken doofuses out of business.

Oh -- the one drawback is that it's Windows or Web-based only. I hesitate to do my taxes on a web service, so I'm forced to do it under Windows. Last year, I did it on my iBook under VirtualPC, though. (And sorry to all of you non US-ians for the spam.)

Well, I just did my taxes, and I'm happy to say that I'm getting back a great wodge of cash. Much more than my unemployment ``benefits''.

This is what the CarTalk guys referred to this week as "Intaxication": The euphoria you feel from your tax return until you realize it was your money all along.

I explicitly have them withhold way more than is necessary so that I'm assured that I don't have to pay up at the end (beginning?) of the year. It was especially nice this year, since my income suddenly became one-seventh what it was halfway through the year. And honestly, that $2000 would have gone unnoticed as $38 a week, but it's neat to get it all at once, despite the fact that, this year, it'll be going to pay for insurance, heating, and food instead of a toy.

I hate when people think of getting a return like a gift or something

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I explicitly have them withhold way more than is necessary

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Just remember when you do that you are giving the beaurocrats in Washington an interest free loan for 12 months. You could take that same money and put it in an interest bearing account instead.

Something to consider for the future: I always declare exempt and pay every year. If employers did not withhold, I imagine a lot more people would be up in arms over income taxes. Even though USA taxes are very low compared to other nations that doesn't make it right. Taxes are necessary but they have gone too far in many cases.

Tom

current CD interest rates are about 1.75% on a 6 months.

You're technically required to pay interest and a fee to the federal goverment if you underpay by a large enough amount. They never seem to bother to collect, though. Nice one-way road, huh? Then again, I suppose it's my determination as to how much I give them throughout the year. I understand the lack of interest, but it's better for me to make sure that I don't have to pay rather than worry about the few dollars that that interest would get me.

<rant>How do you figure they're lower? By the time you add Federal, State, FICA, SDI, SS, etc. mine are close to 54%. Last I checked, that's MORE than most other countries, and we don't get free education or health care* or anything for it. Oh, but we do get to have the DMCA and corporations like Schering-Plough and Enron buying legislation. </rant>


* Yes I know they aren't great, but they're free, so at least the government is *TRYING* to look like they do something for you. I pay $6,000 a year in insurance in addition to my taxes, and I still have to pony up $20-$60 everytime I see a doctor.

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mine are close to 54%

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Damn, where do you live! I live in Alaska where we pay property taxes, gas tax, and Federal Income tax.. works out to about 25% for my tax bracket. But I don't really make much money anyway.