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Tax /s.s./540EZ question please help

post #1 of 14
2/6/10 at 12:12am
Thread Starter 
I just did my taxes for 2009 and we are now owing more than twice we did last year. Is this the case for everyone else? albeit, we did increase our income but slightly over last year.
this is ridiculous.
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post #2 of 14
2/6/10 at 12:24am
lulz,is fucked up
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post #3 of 14
2/6/10 at 7:13pm
Quote:
Originally Posted by forex View Post
lulz,is fucked up
+100
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post #4 of 14
2/6/10 at 7:57pm
not only did we pay more now, we'll pay more 5 years from now when we can exercise our options.. yay wealth distribution!
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post #5 of 14
2/6/10 at 8:08pm
Congress let a lot of tax credits expire this last year for those in the middle class.
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post #6 of 14
2/6/10 at 8:09pm
Quote:
Originally Posted by robin View Post
Congress let a lot of tax credits expire this last year for those in the middle class.

^ This. I'm paying more as well.
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post #7 of 14
2/7/10 at 5:04am
Thread Starter 
Quote:
Originally Posted by robin View Post
Congress let a lot of tax credits expire this last year for those in the middle class.

is this true? sorry i dont follow politics or econ that well.
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post #8 of 14
2/7/10 at 9:38am
The only taxes I pay are based on what I sell in B&S.
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post #9 of 14
2/8/10 at 1:59am
Thread Starter 
can anyone explain this, i just realized this although it happens every year:


why am i filing for taxes on the amount in boxes 1 (and 16 for state) which INCLUDES the amount of medicare/social security payments i made in the year??

shouldnt it be my net wages minus those ss/medicare amounts ?

if you get medicare benefits later in life, you have to report taxes on it anyways, so isnt this just double taxation?

sorry i had been trying to find these answers on the internet and it just loops me around without any real answers





also, what happened to the standard deduction on the 540EZ? there is none? i have been looking on the web for the form and all i can find is a 540 2EZ 2009 form (is it the same?) and it shows no deduction. so i am ending up paying more tax when i file this.



anyone knowledgeable? taxgenius, perhaps? thanks.
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post #10 of 14
2/8/10 at 2:51am
I hate to say this, but the days of getting government at a discount are over.
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post #11 of 14
2/9/10 at 3:17am
Quote:
Originally Posted by sho'nuff View Post
can anyone explain this, i just realized this although it happens every year:


why am i filing for taxes on the amount in boxes 1 (and 16 for state) which INCLUDES the amount of medicare/social security payments i made in the year??

shouldnt it be my net wages minus those ss/medicare amounts ?

if you get medicare benefits later in life, you have to report taxes on it anyways, so isnt this just double taxation?

sorry i had been trying to find these answers on the internet and it just loops me around without any real answers

also, what happened to the standard deduction on the 540EZ? there is none? i have been looking on the web for the form and all i can find is a 540 2EZ 2009 form (is it the same?) and it shows no deduction. so i am ending up paying more tax when i file this.


anyone knowledgeable? taxgenius, perhaps? thanks.

540 EZ? Is that California? In that case, you're screwed. Move to a state with no state income tax, problem solved.

Boxes 1 & 16 of your W-2 report all taxable wages and compensation subject to federal/state income taxes. SS and medicare taxes are in addition to income tax and are not deductible. However not all comp is subject to both SS and medicare; SS tax base stops at ~ $106k and some fringe benefits are excluded from medicare taxes.

Also SS benefits are usually tax free to recipients (unless the recipient has income from other sources) and medicare benefits are always tax free.
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post #12 of 14
2/9/10 at 3:19am
^^^ adding, when in doubt, use turbotax or call a CPA...
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post #13 of 14
2/9/10 at 4:20am
Thread Starter 
Quote:
Originally Posted by pistolero View Post
540 EZ? Is that California? In that case, you're screwed. Move to a state with no state income tax, problem solved.

Boxes 1 & 16 of your W-2 report all taxable wages and compensation subject to federal/state income taxes. SS and medicare taxes are in addition to income tax and are not deductible. However not all comp is subject to both SS and medicare; SS tax base stops at ~ $106k and some fringe benefits are excluded from medicare taxes.

Also SS benefits are usually tax free to recipients (unless the recipient has income from other sources) and medicare benefits are always tax free.

thanks. this is just the confirmation i needed, that was all. i figured being double taxed on the ss all these years i was doing it wrong.
so it is the right way.
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post #14 of 14
2/9/10 at 4:06pm
re: SS my CPA buddy told me if you move from one job to another in a year, or have 2 jobs...

you're most likely going to get SS tax credit since each job withholds SS as if you only had that job, and you'll most likely break the $106k wage barrier.
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