Finished my Taxes and had some interesting numbers!!

JD Seller · Mar 4, 2015

I would not mind paying what I feel is a "fair" tax. Truthfully this would be around 10% maybe even 15%. I really do not feel like 20-30% is in anyway "fair" or reasonable.

Here are the numbers I found interesting:

1) I was 34 years old before I made more (gross income) than I paid this year in state and Federal taxes. That just shows how taxes are higher and how inflation has devalued the dollar.

2) My gross income was up but my net was WAY down. It will be even worse this coming year with grain prices and cattle prices looking lower with inputs trending level to higher.

It does not take long to do my taxes. The wife and I both keep good records so it takes little time to compile the information we need to file. I do wait until March so that any late documents are here. I also have a tax attorney do my taxes. He is well worth his cost. I do not want to take the time to learn all the latest things about the tax code.

I was audited the year my first wife died. The IRS auditor dealt directly with my tax attorney and I never had to deal with anything.

Just worth it for the peace of mind to me.

paul · Mar 4, 2015

How is your farm structured, that you can wait until March? Typical farm accounting you need to know by March first if you owe on farm income, it has to be in the mail by then.

Otherwise, I agree with what you say. And of the people taking money from me, the good farm tax CPA is one of my best investments.

Paul

JD Seller · Mar 4, 2015

I pay estimated quarterly taxes. I also always make sure and pay the fourth quarter taxes before Jan.15 of each year. I never have had an issue.

The way my tax guy explained it to me is that IF you have 90% of the owed taxes paid before the Jan. 15th dead line you good for the next year. If you under pay then even if you pay the estimated quarterly tax the next year you have to file before the March 1st dead line.

I got tired of having to file amended returns because of late arriving documents. I just received an interest statement last week. If I had filed earlier I would have missed it.

LA in WI · Mar 4, 2015

JD,
How long have you lived under that big rock of yours? I was born on a farm in Grundy Co, but my career has been in sales with a major seed company.

My wife worked for a firm doing taxes for farmers for about 15 yrs...she still does our taxes. She always commented about farmers paying a low rate of taxes, but she said it was always legal. Even with real estate taxes their total rates were below what we paid.

My wife and I have always been prudent with our money (not tight)....mostly used cars until the last 20 years. No credit card debts whatsoever; not one dollar. All bills paid promptly. House paid for years ago. We have virtually no major deductions, except for what we donate to charity.

I'm 78. I'm a conservative retired guy who has no time for the "tax and spenders". I have paid in the 28-30 percentile for years. I am not complaining as long as I feel some of my money is going for new planes and missiles to hurt those who want to hurt us.

But give me a break...10-15% tax rate???
LA in WI

PS JD I invite you to come to the Badger Steam & Gas show in August near the WI. Dells area and sit with me under my display tent. We will have a little talk. we missed each other a few years ago. 10-15%....wow.

JD Seller · Mar 4, 2015

La if you study history the Kings of years past made due with 10% and the Good book says 10% is good enough for the Big fellow up stairs. So that should be good enough for the crooks we send to Washington.

The taxes we pay today are much higher than the taxes that King George put in place that led to the Revolution.

As for total tax rate, with state, local and Federal all figured in I am right at 38% of gross income without figuring sales tax on top of that.

I am tired of being sucked dry!!!

The Federal Income tax will lead to the total down fall of this country. That is why our forefathers kept taxes low. Without money the Federal Government would not be involved in our everyday lives as much.

Dean · Mar 5, 2015

I agree JD.

History has demonstrated time and time again that civilizations decline when tax rates get much beyond 20% - 25%.

Ours are and we are declining at an astonishing rate.

Dean

sms · Mar 5, 2015

If I paid less then 30% it has not been many times, most of the time I am in the 40-50% tax bracket. After the 2008 recession my income was off by about 25% and what do you know I was in lower bracket and had the same net income, why work extra hours/Saturday ect just to give it to Uncle Sam. I feel the American dream is over if you work harder and they just take it away from you.

Lazy WP · Mar 5, 2015

I am 52 years old. Been paying income taxes since I was 13. I farmed a few years on my own, and figured out the debt load was too hard on my intestinal tract.
That being said, my experience is, that most people that complain about paying to much in taxes are getting a big chunk from Uncle Sam in one form or another.
Around here the rancher are all whining about paying income taxes because they sold high dollar calves. At the same time there are lots of them that collected well over a quarter million in Drought assistance. Go figure.

paul · Mar 5, 2015

Yup, quarterly estimated works.

I know, one of my investment places sends out 1099 the last week of Feb, makes it tough.

Paul

JD Seller · Mar 5, 2015

I did not get any GOVERNMENT money. I think you hear farmers and small business guys complaining because they write the checks all at one time for their taxes.

I think withholding taxes should be outlawed. IF everyone had to write a check so they would see how much they are paying in one BIG lump sum then taxes would go down rapidly. I know it will never happen but the average Joe gets bleed to death slowly over 52 weeks and it does not hit them as hard as if you see it in one big check.

Geo-TH,In · Mar 5, 2015

I feel the same way. Been using the same CPA for the past 40 years, worth it for the peace of mind to me too.

Above my pay grade, but next years quarterly amounts to only $636 total, instead of $6k and my income has gone up. Perhaps age has something to do with it, 66. Don't know, don't care. Been throught 2 audits and all cpa does is fire off a letter to IRS and they say OK, sorry. Well worth having someone to deal with them.

Dean · Mar 5, 2015

Congratulations, JD. You are certainly in a small minority and I respect you for it.

Your proposal would certainly be effective but has not a snowball's chance in DC.

Myself, I would like to see the 16th Amend repealled. This would most certainly rein-in an out of control federal government. Of course, this proposal too has not a snowball's chance.

Dean

Mike M · Mar 5, 2015

I feel your pain ! The more I make the more they take so I end up farther behind ! And I don't make very much either. Nor does the wife. Kids are now too old to claim so I'm really feeling it.
Add up all the sales taxes too. Our school district now has an income based tax in addition to the still enacted property tax they get. So it is now double taxation !
Don't even get me started on insurance. Seems like all I make goes to taxes and insurance companies ! Electric company and propane supplier gets what's left.

Traditional Farmer · Mar 5, 2015

Doing ones own taxes is right up there with being ones own lawyer and ones own doctor.My CPA is worth every cent he gets.

led · Mar 5, 2015

I just received form schedule k yesterday. I have always filed in April.
Led

Dave H (MI) · Mar 5, 2015

You guys are getting me all choked up! From the other side of the desk I can tell you that my clients love me too...well most of them anyway...and I greatly enjoy my annual peek into their lives. I have watched kids grow up and worked with people thru a lot of ups and downs. Some families have three generations all sending taxes here. Clients who have moved send me their taxes from all over the US. I get one each from Germany and France also. I had a client in Japan when the tsunami hit. Client yesterday told how he was at Marshall when the plane went down that killed their football team. I don't gouge anybody. I was surprised to find out last year that HRB now charges more than I do. I was primarily a corporate CPA at the start and I still really like doing business taxes. 1040 work was done to keep the wolf from the door. It is more reliable and I got to where I loved it. My clients tell me, especially with all the fraud currently going on, that they feel better having one person they know well handling their information. Just seems to be a mutually beneficial arrangement.

jimg.allentown · Mar 5, 2015

JD, you only THINK that you are in that low tax bracket of 38%. That is only what they take from you out of what you have left. Everything that you buy is taxed over and over and the taxes become part of the price you pay for goods.

Example: A 50-cent can of beans
Farmer pays tax on the fuel he uses to raise the beans and harvest them.
Farmer pays tax on the fertilizer, pesticide, herbicide, or any other chemicals he uses to raise the beans.
Tax on the fuel to take the beans to market.
Tax on the factory that processes the beans and cans them
Payroll taxes on the employees at the canning plant.
Taxes on the warehouse that stores and distributes the beans - inventory tax, property tax, payroll taxes, etc.
Tax on the store that sells you the beans. Payroll taxes for the employees, business and real estate tax on the store, etc.

And, by the time it is done, the tax collectors get at least one piece of the pie at every transfer, and in most cases several pieces. So in reality, how much tax are you paying indirectly on a can of non-taxable food??? I would say a good hefty percentage of the cost of the food.

dhermesc · Mar 5, 2015

In Kansas you'll pay anywhere from 6% to 10% sales tax on that can of beans too.

LA in WI · Mar 5, 2015

JD,

I have no quarrel with most of your spiel, but that 1st paragraph about 10% tax rates as "fair" set me off. Those days are gone as we all know.

"...if you study history the Kings of years past"... The King is Dead! Long Live the King!!!

LA in WI

donjr · Mar 5, 2015

I am not going to get into my tax situation because I get every penny back and usually some goobermint money during the year. I still wind up paying a potful during the year, and when I was working full time, they made up for what they don't get now.

But my main reason for jumping in here was a short story about my great aunt. She had her SS, a teachers pension, and my great uncles railroad retirement coming in, lived in my granddad's house rent free and had an enormous legacy in cash built up. My dad took over her finances and invested a large deal of it in paper at 15.01% at that time. When the tax man came calling, she had made over $25K in interest income, and had to write a check to Uncle for about $3500. Now, you have to realize, this woman was in her 90's and managed to live on about $4,000 a year at that time, and she was dammed if she was gonna pay the IRS $3500 of her hard earned money! But, then again, she still couldn't understand where all of that money came from......

ndaircapt · Mar 5, 2015

This (taxes) comes to a simple question:

Do I want more government services/aid/protection/subsidy/insurances available or less?

I vote LOWER taxes and for LESS Government provided services, aid, protections,insurances and subsidies - across the board for BUSINESSES and INDIVIDUALS.

Less of these things should come from the FEDERAL GOVERNMENT and more of these things should come from your STATE and LOCAL government if you choose to have (vote for) them.

My two cents,

ben brown · Mar 5, 2015

well years ago i was complaining about paying a little tax old uncle look at me said boy if your not paying any tax your not doing very good. so me i wish i was paying millions in tax

JRSutton · Mar 5, 2015

Took the words right out of my mouth.

If the average american had to actually write a check even quarterly the way those of us who are self employed do - boy it'd be a different world.

If everybody felt the way the check-writers do when seeing blatant government waste, and redistribution programs - there WOULD be a second revolution.

wisbaker · Mar 5, 2015

A month or so ago a classmate of mine from High School (who started at Fisher Body when we graduated High School, but quit them so he could work in the local IGA) posted a item on Facebook trying to support raising the minimum wage. It told us about a young lady from Denmark that worked at a McDonald's and was making $21/hour AND a Big Mac in Denmark was only $.59 more than in the US.

I did some research on Danish taxes, information out there seems to indicate all Danes pay an 8% tax on their gross wages (no deductions or minimums a flat 8% before any deductions or other taxes) as well as local and national income taxes. In reality the McDonald's worker in Denmark will pay about 43% of her wages in taxes or her $21/ an hour is taxed down to $14.07/hour. The income tax has two brackets 5.83% or 15%, Municipal income taxes range from 23% to 28%.

Our Media would scream that's unfair, the rich are only paying 3 times what the poor do so they're not paying "Their Fair Share"

I reply everyone pays income taxes in Denmark, that's fairer than our system.

Our government won't allow anything like this to be implemented in the US because if everyone had to pay taxes a lot fewer people would be willing to vote for more taxes.

Frank 41 · Mar 5, 2015

LED, what if you had to file Mar 1 and have your k-1 and 1099s come this late? I just got my 1099s from Vanguard the 5th.

I have always said about farming, you had 3 choices about where your money goes - implement dealer, bank, or government. You could go all cash but that will take a lot of green backs buying a combine.

Finished my Taxes and had some interesting numbers!!

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Member

Member

Well-known Member

Well-known Member

Member

Similar threads