Why, why, WHY does the AMT require an entirely separate set of calculations than normal taxes?! WHY?! Isn't it bad enough that we live in one of the very few places in the US where real estate is still so expensive that my "I could support a four-person family on this anywhere else in the country" salary here requires two incomes to cover renting? And on top of this I have to CALCULATE MY TAXES TWICE!??! And pay more in Federal taxes simply because California has a high state tax rate?!!!?? And pay more because I'm MARRIED?!
Bastards.
I got TWO HOURS of sleep last night, and I blame the Feds. Grrrr.
Monday, April 14, 2008
Tax-induced grouchiness
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6 comments:
The AMT is evil, of course, but complaining about taxes is the first step on the path to becoming a Republican. Not that this will help you sleep!
No, no, I get out of that because I'm not complaining about how *much* I pay - I'm complaining about poor implementation & illogical structure! That just makes me a typical we-can-solve-anything-with-better-tools mentalitied tech worker :)
Huh, I think my lack of sleep is affecting my sentence structure. Wonder if I should write any more emails at work today....
The AMT has to be calculated in addition to the regular calculations simply because that approach is consistent in complexity with the code's 5 different definitions of the concept of "child," with 3 different mileage possibly- deductible rates, with a full page of calculations, none of them explained as you go, to determine whether any of one's Social Security income is taxed, and, if so, how much, and at what rate; and with having both regular dividends and "qualifying" dividends, the latter requiring still another way to calculate your final amount due. It is also consistent with the special worksheets that one does not file, but must keep with one's own copy of one's tax returns. This year I learned that a trust, in some circumstances, fills out a K-1 with every single space left blank in order to have a small text message to say that there is no income reportable on the K-1.
As a long run treat, since most checks are no longer returned by my bank, I get to keep all my 3 page (with lotsa extraneous information) bank statements as my evidence in case of audit.
How long does one keep such evidence? Well, the typical audit takes place in 2 or 3 years; but if the IRS alleges fraud, the statute doesn't run. So if you think that the IRS might get clever enough to allege fraud--and why not?--then you get to keep your evidence forever. . . .
Loyal Reader
Try adding freelance income into the mix! And having California charge you a fee because you failed to file quarterly returns for $3,000 worth of income. But I can't complain, because we had "people" do our taxes this year.
Are you not able to deduct a portion of your rent from your state income tax? And your state from your Federal? I think we get to do that in Mass.
But I finally hired people this year, since my situation is going to change so drastically over the coming year.
Yikes.
Ha ha hahahahhahahh ha ha (sniff).
The CA renter's credit is $60, and I don't qualify. And deducting state tax is what pushes us into Federal AMT!
We're hiring people after all, in the hopes that they can tell us that we made a mistake & owe less money than we think....
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