Tax Time!

[tenaya]

Finally my W2 form came today so I could do my taxes. I'll be getting some bucks back but I wanted to rant about two things.

First, the state of California will issue me a refund since I over paid my taxes. This means a year from now, I'll have to declare that $106 as *income.* That is just totally wrong in my mind. The state has had possession of that money and now they are rightfully returning it to me. Heck, they should pay me interest since they've had my money for months! It's just wrong, wrong, wrong that it's considered income. Blah!

Second, remember a few years ago how the states were trying to figure out how to get their sales tax from all the purchasing that goes on online? Well, apparently California found something called the Use Tax that has been on the books since 1935 and it covers all sorts of out-a-state transactions (though I think the net was a new addition.) Apparently, we're supposed to keep track of what we buy out-a-state, know what is taxible and what isn't (and be sure to add in the handling fees) and declare it. The form I have doesn't exactly say what to do with this number once you've figured it out though.

Oh, and I didn't care for the thinly veiled threats about increased auditing in the Federal booklet. Yes, that makes loads of sense; give tax breaks to the very rich and spend your resources hunting down the folks that are deeper in debt.

Bush doesn't much like the middle class, does he?

Words escape me....

Comments

[geminia905.livejournal.com]

You have to report your refund as income? *boggles*

And Indiana's always had the use tax line in its forms. I always leave it blank.

[tenaya.livejournal.com]

Yeah, I left mine blank, too. I suppose they will become more aggressive about it in the future though.

[geminia905.livejournal.com]

They'd better remember what happened when England got overly aggressive with its taxes back in the late 18th century. ;)

[redbyrd-sgfic.livejournal.com]

Hey, I got a statement from the state of Mass for about $3.95 I overpaid.. because God forbid I should neglect to pay tax on it!

The use tax is extremely common. Big out of state retailers are expected to track and pay in Sales tax to CA on their own (I've seen this on invoices for customers in CA) but you, the taxpayer are expected to report and pay tax on out of state purchases that are not taxed at point of sale. Maine and Mass do this too.

This leads some people I have known to habitually use cash for out of state purchases.... not an option for net purchases I know.

[tenaya.livejournal.com]

They don't make it easy. The form says to gather the data then, in an example, it states you'd pay taxes on clothes but not on drugs. Hey, how about a listing of what is tax worthy?! They make it so hard.

Have I said lately I'm in favor of the flat tax?

[ankh-lj.livejournal.com]

"First, the state of California will issue me a refund since I over paid my taxes. This means a year from now, I'll have to declare that $106 as *income.* That is just totally wrong in my mind. The state has had possession of that money and now they are rightfully returning it to me. Heck, they should pay me interest since they've had my money for months! It's just wrong, wrong, wrong that it's considered income. Blah!"

On no planet does that make sense. Not only is it not Earth logic, it's not even Milky Way Galaxy logic.

[tenaya.livejournal.com]

Oh, not too worry. It turns out California isn't as crazy as I thought, but the federal government is. So, things really haven't changed. Bush logic=frigging crazy as a June bug.

[green-grrl.livejournal.com]

Are you sure your refund is income? Because it was money that you declared as income in 2006 and was withheld. A release of 2006 income withheld isn't extra income, it's 2006 income. At least that's what makes sense to me. Ask a tax professional.

[tenaya.livejournal.com]

Oh, I agree! And I did make a mistake as it was actually a deduction, so that's good. It turns out the Feds consider it income though.

[deej1957.livejournal.com]

I've never listed my tax refunds as income. Are you sure you have to? I don't put anything down for the Use Tax. Didn't even know what it was till you mentioned it.

very few presidents have liked the middle class, actually....

[tenaya.livejournal.com]

very few presidents have liked the middle class, actually.... Really? That's very sad. Did you learn this on that netflix series you watched? I bet Teddy Roosevelt liked the middle class.

I always skim the tax forms and I never noticed the Use Tax before.

As for the tax refunds being taxable income, it now seems like the federal government considers it so on certain circumstances. blah!

[deej1957.livejournal.com]

Actually, it was more an opinion gathered over the years of looking at taxes and so on. Probably shouldn't blame the presidents... I remember when I was a senior in high school we looked at various financial help opportunities and basically, there were very few. My parents, being middle class, made "too much money" for me to get help, yet, it really hurt them paying for Fresno, and then the next year my sister was added. We both worked to help out, but still. Middle class gets not breaks anywhere.