Social Security wasn’t taxed until Reagan signed that into law in 1984.
And yes, @thumper, I was getting SS in the 70s.
As @BelknapPoint says, because my father died when I was 14. I got it until I finished college. That was also changed right after that time period, to ending at 18 no matter what.
I don’t think either of those changes were good ones.
I agree that those were not good changes.
I recently read an online article that discussed taxation of social security benefits (and Medicare IRMAA), and why social security benefit limits are not indexed. The comment that stuck for me was that these are both are taxes that no one likes, but that they are very unlikely to change due to the state of the underlying funds. Soon, everyone will be taxed on some portion of their benefits. Sigh…
Perhaps it is not surprising that the forum demographic may be prone to griping about income taxes.
It has a figure with the following:
| Taxpayer | Income + Payroll Tax Rate |
|---|---|
| Single Worker Earning $45k | 21% |
| Married Couple With One Child Earning $200k | 26% |
| Top 400 by Income | 23% |
| Top 15 by Income | 20% |
| Top 25 by Wealth | 16% |
So the tax code stops being progressive at $200k of annual income?
Indirectly, because of lower income tax rates for such things as long term capital gains and dividends that tend to make up a larger portion of income at very high income levels.
But also remember that the payroll tax, which is applied only to labor income, has a regressive rate structure.
Filled out and filed. The IRS was happy to grab our small $$ we ended up owing this time. 
Not going to change any withholdings for 2022 because we are almost ready to sign a solar contract.
Not sure what indirectly means in the context of my question. But from the article that you linked:
And yes, payroll taxes (which support 2 specific government programs–each with significant solvency issues and not the general federal treasury) are limited to labor and capped at specific income levels (with benefits based on amounts contributed). That has been the case for how long?
You could add untaxed employer medical insurance premiums to income in the analysis. Its definitely a benefit. Would have a bigger impact on those with lower incomes (employer premium paid is same for employee making $40k/year as it is for one making $200k/year – family situations being the same) looking at effective tax rate.
I did my mother’s taxes on Sunday night. She doesn’t owe anything but the state is giving a $37 refund of sales tax revenue to everyone who files, so I though for a few minutes work i’d do it for her. It took me about an hour, mostly to log in on turbotax, had to fill out the whole federal thing, then state thing, then go upstairs and get her driver’s license, etc.
Today she gets a letter from the state requiring us to go into a webpage and put in a code to show that she isn’t a victim of fraud.
That $37 has caused a lot of work for ME.
I use TaxAct. There was a time when TurboTax didn’t handle clergy housing allowances correctly and TaxAct did and I’ve stayed with them every since. Inertia. It works well for my needs and I understand it, mostly.
I’m done, everything is printed, but will do one more check. Apparently I never like to update with TT after I’m done printing, this time I thought what’s the difference, they unchecked something I did check before and I had to print a few extra pages. So this weekend I will check the printed version and the save pdf to make sure there’s no difference.
I also went online to pay estimate tax for 2022, it turns out April 18 is the deadline, not April 15.
No doubt there is inertia with whatever software you use first (and which works).
Emancipation Day in DC is what pushed tax day to April 18th. TurboTax was good with that for federal but not my state (at least initially – when I printed it, the date was correct on the instructions). I don’t pay to file state returns. State says it will be 2-3 months to get a refund with paper returns. Confident they will cash my check before that. LOL
If you are getting a refund, the due date is artificial. IRS doesn’t care (even if you don’t ask for an extension) though at some point you will lose ability to claim a refund.
It appears that both of the major tax prep software providers ask for the ability to use the data well beyond anything you might want.
https://www.washingtonpost.com/technology/2022/04/12/tax-prep-privacy/
Tax is done, paid CA tax online. This year we can’t pay CA by check, good thing, I’m down to my last check book now.
This year I did taxes on paper first then used Free File. I have always done paper version but this year the IRS is backed up and I want my refund sooner rather than later.
I did paper first to make sure Free File did it right!
I may be a cynic but if TT uses my info to send me ads, I guess I don’t really have an issue with that given how many ads I see for a whole host of things every time I go online. Amazon sends me emails about things I bought or looked at. Search history brings up specific ads on this site and others I frequent. At some point, you become pretty numb to it (at least I have).
Article also referenced online versions. I have never used the online version but it would make sense to me (at least as I understand they work) to store info with tax prep software creator. But if you download the software, your forms are stored on your computer rather than the tax prep software company. Maybe they store info related to the return as part of online filing? More of a reason to file via paper I suppose (do that for the state returns because I don’t feel the need to pay $25/return). Could do for federal as well. But again, if its just to avoid some targeted ads, not sure I care.
Quick question…we did our own taxes. What exactly IS the charitable donation limit. Someone today told me it was $27,000 or so…I don’t think that’s correct. They also mentioned some $800 donation thing…
Anyone know anything about this?
We entered a large amount of donations using TT.
Limits for 2021:
[quote]Subject to certain limits, individuals who itemize may generally claim a deduction for charitable contributions made to qualifying charitable organizations. These limits typically range from 20% to 60% of adjusted gross income (AGI) and vary by the type of contribution and type of charitable organization. For example, a cash contribution made by an individual to a qualifying public charity is generally limited to 60% of the individual’s AGI. Excess contributions may be carried forward for up to five tax years.
The law now permits electing individuals to apply an increased limit (“Increased Individual Limit”), up to 100% of their AGI, for qualified contributions made during calendar-year 2021. Qualified contributions are contributions made in cash to qualifying charitable organizations.
As with the new limited deduction for nonitemizers, cash contributions to most charitable organizations qualify, but, cash contributions made either to supporting organizations or to establish or maintain a donor advised fund, do not. Nor do cash contributions to private foundations and most cash contributions to charitable remainder trusts
Unless an individual makes the election for any given qualified cash contribution, the usual percentage limit applies. Keep in mind that an individual’s other allowed charitable contribution deductions reduce the maximum amount allowed under this election. Eligible individuals must make their elections with their 2021 Form 1040 or Form 1040-SR.[/quote]
Thank you. I hope TT figured this out accurately for us!
There are several different tax deduction limits for gifts to charity described at https://www.irs.gov/publications/p526