 Haven't filed tax returns for 7 yrs. Can I deal with the IRS by myself? |
Now I'm getting letters from the IRS for the years I haven't filed. I made very little money the first 5 yrs. but made lots (1099) the last two.
I don't have any saved as I ... |
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 My grandfather wants to give me $100,000 to put down on a house, what type of tax will we be subject to? |
| I'm gettting married and for a wedding present my Grandfather would like to give me a large down payment for a house. How does it work in regards to being taxed?... |
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 Is a wedding tax deductable? |
| im curious. not married, just heard a man did it. why?... |
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 How does the higher tax bracket work? |
| One of the Lads at work thinks the higher tax band starts after £30,500 I thought it was more myself, but if this is true if I carry on working like I am, I could easily hit that and more. So how ... |
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 If I buy a used car from a private seller, do I have to pay sales tax? |
| sales tax (or any other tax) to the city, county or to the seller?... |
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 Was I tricked by the IRS and what can I do about? |
| In 2004 I filed my return but forgot to file for an annuity payment that I had received, The IRS contacted me an I was told that I would have to start a payment plan and I did that. Then in 2005, I ... |
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 The IRS - Who says they can collect taxes ? |
I have read many answers BUT nobody has yet told me WHEN CONGRESS stipulated the IRS were to collect taxes from me.
Sorry folks, but the IRS IS an independent corporation /
The lawto ... |
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 EMERGENCY help!!!!? |
| (-10*15)^ *7+4(-14-3)^-14... |
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 Publishers Clearing House - Does PCH need your social Security number? |
| My mom got a letter saying she won some money, but they want her to send her social security number to them. This screams scam to me, but I checked the address and it's linked right to their ... |
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 Hypothetically, If I was a rancher and one of my cows gets eaten by a wolf, Can I deduct the cow on my taxes? |
| My girlfriend and I were talking about the wolves and their reintroduction and the effect on ranchers. Just ... |
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 Can I claim my wife if we recently married? |
| My wife and I recently get married at the end of December of 2006. She doesn't work yet. Can I claim her as dependent for the 2006 tax year?... |
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 I got a letter from the IRS stating that I should get my Stimulus check in the mail by June 6th? |
How much longer do I have to wait? Did they mean that they would mail it by June 6th?
Additional Details
Received my check today 6/9... I guess I was expecting too much for the ... |
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 I just received(march 3 2008) 433$ in my Bank account from Canada RIT can somebody tell me what is Canada RIT? |
I Called Revenue Canada and of course they have no clue what I'm talking about:)
Additional Details
My income tax is a different amount of money so I dont think it's my income ... |
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 Turbo Tax users dont get direct deposited stimulus checks!? |
| I just learned that if a tax payer used say...turbo tax and had the filing fees taken out of their refund...then the refund was given to the "other" bank then refunded to the tax payer....... |
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 Bush tax refund?? |
So from what I hear, Bush is giving everyone 600-1200 dollars supposed going to be sent to everyone soon. I was just wondering, if you're not a tax payer, can you still get this money??
A... |
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 Does anyone know.....stimulus payment? |
| I've read that if they have your bank info, it goes direct deposit. But, when we got our taxes done, we had our rebate put on a prepaid credit card. Anyone know if they will add the payment to ... |
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 Shouldnt taxes in every state be the same? |
| Some may say it is, but let me explain, Here in Ohio, in certain counties I pay 7 % on a dollar, in other places I pay 8%. Whe I go to other states( Kentucky, Tennessee, Georgia, and Florida), I pay ... |
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 Can i claim income support if im on incapacity benefit? |
| i have arthiritis and thcouncil have given me a flat but i want to know if i can claim income suppot as well as incap as i cant get any help with furnishing my home thanks to any boby who can ... |
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lopezxlt | Do Rich People Pay Taxes,Too? |
Or They Get Help From Loopholes? What Are Alternative Minimum Taxes? |
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bostonianinmo
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Yes. In fact, the top 20% of all earners in the US pay about 80% of all taxes. While the bottom 50% pay less than 10%.
It's a myth that the rich don't pay taxes. There are tax breaks that are generally available only to wealthy investors (Google "retained interest" or "held interest") but they do pay the majority of all taxes in the end.
The Alternative Minimum Tax is as the name implies, an alternate way of calculating Federal income tax liability. Technically you have to figure your tax liability both ways (with and without the AMT calculations) and then pay the highest of the two amounts. However the AMT generally only kicks in at higher incomes so most taxpayers never have to deal with it in actual practice.
The AMT dates to the late 1960s when there were a lot of abusive tax shelters and loopholes for the wealthy. Many high income taxpayers then paid little or no income tax. Congress implemented the AMT to combat that situation. The problem today with the AMT is that it was never indexed to inflation. An annual income of $60,000 per year was nearly unthinkable for most Americans back then, however that's mid-range middle class today.
To fight the effects of inflation, Congress has been issuing temporary patches to the AMT tables each year for some time now. If they didn't, upwards of 20 million taxpayers would be subject to the AMT. Some have asked why Congress doesn't simply patch it permanently or do away with it entirely. The answer to both questions is simple politics. When generating the annual budget, Congress has to stipulate where the revenue will come from. They use the estimated revenue from the AMT to keep budget shortfall numbers artificially low, making the deficit look less onerous that it truly is. When they issue the patch, that does NOT update the budget numbers though the added shortfall most certainly IS added to the deficit. |
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Judy1
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Latest statistics:
Top 1% pay 37% of tax
Top 20% pay 88%
Top 50% pay 97%
This doesn't say that SOME people don't get help from loopholes, but "the rich" pay a very large % of the income taxes.
Alternative minimum tax is a tax originally meant to ensure that "the rich" can't totally escape income tax no matter how many loopholes they find. Unfortunately, since the income level to be subject to this wasn't indexed to inflation when it was set up many years ago, it now extends down well into the middle class. So far congress has passed a one-year law each year exempting many of the middle income people it will hit, but since there's been no permanent fix, if congress stops this every-year fix, a lot of people will get hit by it who would no way be considered as rich. |
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pro_gamer2000
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yes |
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★Greed★
 |
Rich people know excessive liquid capital is not wise.
Poor people with money save it in a bank or buy mutual funds.
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EskimoQ
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By "taxes" I'm guessing you are referring to "personal income tax". People only need to pay personal income tax on their personal income.
The secret is... find lots of deductions, invest in a growth asset that does not need to pay tax as it grows (i.e realestate) or run a company and only pay tax at the company tax rate.
The trick is to educate yourself financially - and don't trust what other people say unless they can show you results. *Greed* sounds like he knows his stuff. I'd give him the best answer. |
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Joe SixPack
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Rich people pay through the nose.
The AMT is a second calculation that was designed to assure people with high income paid some taxes by disallowing some deductions and taxing some income that might not be taxed. It often hits lower income people since it was not adjusted for inflation. |
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Tortuga
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If your asking about the "Alternative Minimum Income Tax" (not sure by your question). The Alternative Minimum Income Tax, which is an additional tax, on top of your primary income tax, begins at $175,000 a year in income. |
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Osakura
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Of cause they pay tax everybody does |
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Jus Beachy
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Income tax evasion, how many times do we hear about the wealthy owing hundreds of thousands of dollars. Regularly, and homes going into forclosure too! |
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xombie78
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Rich people are usually able to avoid paying taxes by doing things that are tax deductible, such as making contributions to charitable organizations, gambling, and buying government bonds. |
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