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I look at it, and my monthly income tax is as much as my rent. It hurts :(
by parthdesai 8y ago
I look at it, and my monthly income tax is as much as my rent. It hurts :(
- gumby 8y agoYour rent just pays for a place to live, while your taxes pay for many many things all over the country.
- noblethrasher 8y agoRent lets you live in a house; taxes let you live in a civilization.
- parthdesai 8y agoI'm not saying it's not justified, specially when i have seen my family friend's life being saved without ruining them financially because of free healthcare, i was just replying to the last sentence of OP. It's justified and i'm still allowed to hurt a bit by seeing the amount of tax i pay.
- cr0sh 8y agoYou probably know this, but it is possible to set things up so that zero taxes are taken out of your paycheck. Now, come April 15th, you will owe those taxes, but if you have an idea or know what that amount will be (in theory, you should be able to know it exactly), then... ...you can elect to not take those taxes out, and instead via your bank or employer have that percentage of your check put into a savings account of some sort. Then you can let that money sit and accrue interest (and laugh at the small return), or use it to invest (which has a greater risk, because if you invest wrong, now you've lost that money and you still need to pay it back at the end of the tax year). If this sounds interesting to you, then (unless you already have the experience) I would look into some form of small time investing, or other financial instruments for wealth accumulation from which you can still withdraw an amount at the time you need to pay your taxes. Assuming you can find something with a decent return over a year's period. Which is probably the most difficult part of it all.
- javagram 8y agoThis is bad advice. The IRS will fine you if you adjust your withholding to be significantly less than the tax owed. You can’t just hold onto the money until April 15. The best strategy for withholding that conforms to the law is to use the IRS online withholding calculator to set your exemptions and aim for a payment/refund of around $0
- amanaplanacanal 8y agoYeah, you have to pay at least quarterly. Annually won't cut it.
- dec0dedab0de 8y agoIf you do this, you have to pay estimated taxes quarterly, so you really only have 4 months to get a return on your investment.
- parthdesai 8y agoAppreciate the insight, but i live in Canada and i don't make even close enough to justify the amount of work that will go into setting all this up.