Last night, I finished my last tax return for the season.
Just some interesting facts about my tax practice.
The clients in this practice paid 6.2 million dollars in federal income tax alone. That's just one small practitioner out here in Loveland Ohio. It boggles the mind to think how much is paid across the country.
27 clients received unemployment compensation for the year; about 5 more than an average year. Surprising to me was how many of the people where upper management types who lost jobs as a result of restructurings.
Alternative Minimum Tax (AMT) hit on 15% of the returns we prepared. If you don't know what AMT is, let's just say it's a nice little add on to the taxes you already pay.
The average amount paid on April 15th was $4,303 v. an average refund of $3,106. It's the first in my practice time the average amount owed was larger than the average refund.
The most common mistake people make on their taxes; premature withdrawals out of retirement accounts. It's the number one pile on for people who already have financial issues. Most people think the withholdings will cover the tax. Many times the withholdings only covers about 30% of the total liability. I cringe every time I see a 1099 R with a 1 code in the distribution box.
I have personally already worked 1000 hours for the year. How much of that work should I share with the crack head across the street?
The largest AGI (adjusted gross income) clocked in at 1.4 million dollars. If you are one of these people who don't believe the rich pay enough. Tell me exactly how much this scumbag and extorter of the poor should pay for his "fair share"?
Liberals are famous for saying that the rich don't pay enough, well here's your shot Mr./Ms. "Progressive". You tell me how much they should pay and I'll tell you how short he was on this year's return.
Finally, I'm always amazed at how few people know how much they actually pay in taxes. Most people would tell you it's too much but few actually know what they pay. Most self employeds can tell you what they pay because they actually have to write checks to cover the liability.
If the feds wanted to start tax reform, they would start by having people cut a check for their taxes. The tax riots would start about 48 hours after the first payments were due.
4 comments:
...And that's just the direct out-of-pocket tax expense. don't forget the $30,000 in federal debt that the feds have racked up for each man,woman and child in this country. And the additional $30,000 that will pile on over the next 4 years. No one should think for a second that this is not a tax. What if people had to write a check instead of incurring a stealth debt? Blood in the streets.
Oh, why don't we also remind the good folks out there in the tax paying world that they also pay about 25% of their net pay to hidden taxes.
Also, why don't we have everyone cut a check for that health insurance benefit that rip-off employer pays now. I think that would cut the time for the riots to start to about 24 hours.
Finished my last return this afternoon -- My dad was running late this year with his docs. :o) Since we're near 2 Citi call centers and a large crane manufacturer, we've had record number of clients with unemployment and that dreaded 1099-R, code 1. (Ask me sometime about the women who took out $100k, no withholding and didn't leave a cent behind for taxes...)
Bec
Congratulations for finishing. I shared many a tax war story last night with a fellow CPA.
I've had the scenario you noted before. Fortunately, nothing like that this year.
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