Thursday, March 06, 2008

Tax conversation from hell

Here's a sample conversation from a client who moved here from New York. I have changed the names and municipalities to protect the innocent.

Gordon Jack you owe $490 to the city of Wyoming.

Client How do I owe that much to the city of Wyoming, I thought my employer withheld Wyoming tax from my check?

Gordon That's the school district tax.

Client School district tax?

Gordon Yes Wyoming school district has an income tax to fund their schools.

Client And they have a city tax? But I pay the city of Cincinnati city tax?

Gordon Well you pay the city the city tax for the city you work in as well as the city you reside in. Some cities allow a credit for the tax they pay to the city they work in, Wyoming does not.

Client So I pay 2.1% to the city of Cincinnati for working there, 1% to the city of Wyoming for living there, and 1% for the school district where I have no kids in the schools.

Gordon That's correct.

Client Jesus (&*%*^# ! I might as well move back to New York.

Gordon Or move to Texas and you'll automatically get a 4.1% raise.

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