Federal taxes, state taxes, local taxes

United States
April 14, 2013 11:07am CST
In 39 years, I only had to pay either state or federal taxes, with the exception of the two years in a major city where I paid wage tax (and that covered my state tax). This year, I got a $300 rebate federally but owed over $200 for the state! My boyfriend got a $5 refund, owed nothing to the state, but his employer did take enough local tax out-and he owed $35! You'd never know it, but I wonder where that money is going. I moved one state west, and it's like I'm in another country! I used to use an accountant for my taxes, when I had my own business, but I'm back to doing our taxes again. And I had everything ready to go early in February! I was stoked-but the sequester crap held everything up, so I couldn't even file until February 22nd (my return was complicated, with several schedules). So I finished filing my boyfriends yesterday, and got our payments postmarked yesterday. Someone asked why so many Americans wait to file? Well, if you owe, why would you pay early? It's not like you'll get a break on your taxes. People don't get their files in order. I started putting receipts together in December, and made a spreadsheet, just adding what came in by the end of the month to it. I'd love to computerize it, but I'm not quite there yet! And so many are intimidated by the tax codes! If the IRS cut the rule book in half, and simplified things, maybe more people would file on time! That's why I rely on a program to do mine-it makes it so much easier! So are you ready? Did you file, or will you be scrambling to do it tomorrow night?
1 response
@GardenGerty (169590)
• United States
14 Apr 13
Hubby uses software and does ours. We used to could count on owing state, but they changed the laws and we have gotten some back this year and last. He also file for homestead exemption. Our taxes went in March 3, but the Federal seems to be having a bad time of it with our return and when hubby talked with a live person they said there was a problem with a previous return. Not sure what that was about, we did receive a "mystery check" last summer, but it was not for last years taxes, so who knows. I could use the money though. We file as early as we can because we usually get more back than we end up paying in.
• United States
15 Apr 13
I know how to do our federal returns by hand, but since I don't trust my math anymore, I used a program. This state confuses me-especially having both state AND local taxes. We didn't have anything weird like that in Jersey. I know we've got my boyfriends withholding right since he only got a $5 refund for federal, and $0 for state. Mine was seriously screwed up-I got a large federal refund but owed a lot to the state. And I'm not working now, so I'll only owe on the trip I won in January IF we can afford to take it. That one is still up in the air.