My Annual Thank You To Our Beloved IRS

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
Once again IRS you have gone out of your way to make certain we do not enjoy the merits of smart investing/saving in order to "build" a comfortable life in retirement. I hope it is beneficial when you spend it on studying the mating habits of the purple four eyed flying doodlebugs.
 

why do you say that ? we have zero long term capital gains brackets , roths that are not taxed at retirement ,extra exemptions for seniors ,etc ..in fact seniors can pull 24k out of their ira's which was never taxed just using the standard deduction as a couple and get it tax free ... they can take up to 44k at about 4% effective tax rate ... we can even take some ira money , buy leveraged permanent life insurance and leave my spouse 100% tax free money ..

if i leave my wife a 1 million dollar ira , she has no clue what rmd's will be , plus it is likely at some point she will be filing single when i am plant food ...but for no where near a million i can buy a tax free spl policy , pay for it with some ira money .. pay the taxes as a couple on the ira money and eventually she gets 1 million tax free dollars and that policy will not cost anywhere near what it pays out at .

it seems poor tax planning on our behalf is the real issue. the tools and laws are all there . it is up to us to use them ...
 
fmdog44 said:
I hope it is beneficial when you spend it on studying the mating habits of the purple four eyed flying doodlebugs.
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Can't blame the Infernal Revenue Service for that. :bigwink:
 

.

Because I live simply and debt-free on a small income... I have not been required to pay income tax or even file an income tax return for many years.

That will change when I am forced to take IRA RMD. Thankfully, there is now a new retirement bill in congress that will raise the RMD age a couple more years.

.
 
mathjak107 said:
why do you say that ? we have zero long term capital gains brackets , roths that are not taxed at retirement ,extra exemptions for seniors ,etc ..in fact seniors can pull 24k out of their ira's which was never taxed just using the standard deduction as a couple and get it tax free ... they can take up to 44k at about 4% effective tax rate ... we can even take some ira money , buy leveraged permanent life insurance and leave my spouse 100% tax free money ..

if i leave my wife a 1 million dollar ira , she has no clue what rmd's will be , plus it is likely at some point she will be filing single when i am plant food ...but for no where near a million i can buy a tax free spl policy , pay for it with some ira money .. pay the taxes as a couple on the ira money and eventually she gets 1 million tax free dollars and that policy will not cost anywhere near what it pays out at .

it seems poor tax planning on our behalf is the real issue. the tools and laws are all there . it is up to us to use them ...
Click to expand...

Rules for retired singles w/zero dependents that cannot itemize that earn too much are different.
 
fmdog44 said:
Rules for retired singles w/zero dependents that cannot itemize that earn too much are different.
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Well they still can tax plan better ... if they earn that much that they can’t make use of the zero capital gains brackets or do Roth’s then what exactly are we feeling sorry for ? Taxes are still pretty low..

i have no no idea what this thread is supposed to be about
 
[FONT=&quot]"The only thing that hurts more than paying an income tax is not having to pay an income tax[/FONT][FONT=&quot]." - [/FONT]Thomas Robert "Tommy" Dewar


 
Well, I just went over my 2018 tax preparer's work and for the second consecutive year I found a simple subtraction error. I used this preparer because of last years big error by another company. This time it is a small one but the mistake like last year is a simple math mistake. From now on I'll do my own even though I hate doing it.
 
.

It irks me to know how government spends my tax money...
so I try my best to legally give it as little as possible.

That goes for the state too. Federal law requires all states
to give free education to illegal aliens at taxpayers' expense.
Here in Texas, public schools are filled to the brim with them.
 
KingsX said:
.

It irks me to know how government spends my tax money...
so I try my best to legally give it as little as possible.

That goes for the state too. Federal law requires all states
to give free education to illegal aliens at taxpayers' expense.
Here in Texas, public schools are filled to the brim with them.
Click to expand...

i can't control what the gov't spends it on anymore then i can control what bond issuers do with my money .... but i can make sure that my fair share of taxes is the lowest number i can legally reduce them to using the tools and laws available to me .
 
I agree with the quote below but I won't cut off my nose to spite my face in order to reduce my taxes. I will spend what I need to spend on an enjoyable life and pay the taxes due.

I also believe that every American should have a little skin in the game. Every adult rich or poor should contribute to the day to day operations of our country.

"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes.
Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands." - Judge Learned Hand
 
Well said Aunt Bea despite the pain it has to be one. Taxes have been in question since day one and still there is no perfect system.
 
The IRS empoyees over 80,000 people to collect taxes. The IRS is one of the most powerful units of our government and our tax laws cause tax payers to attempt to cheat. If they decide you have an error on your taxes and you still owe $1000.00 it is up to you to prove you don't owe. The solution to the IRS would to close that unit of the government. Then establish a National Sales Tax, when you purchase a item you pay the tax at that time and you are done. No filing taxes no more IRS.
The present tax code was established by politicians who spend our tax money like there is no limit and give raises to guess who. IT SEEMS THAT THE RUES ARE: Tax his land, tax his bed, tax the table where he is fed, tax his tractor, tax his mule, teach him that taxes are the rule, tax his work, tax his pay, he works for peanunts any way, tax his cow, tax his goat, tax his coat, tax his pants, tax his shirt, tax his dirt, tax his tobacco, tax his drink, tax him if he trys to think, tax his cigar, tax his beer, tax him if sheds any tears, find other ways to tax his ass, and when he is gone, do not relax, its time to add inheritance tax.

How did this happen spell............. POLITICIANS with the IRS to do the dirty work.
 
I think what is lost in all this is the frustration expressed in post #1. Being an average person not spending a lot of time researching every possible way to minamize the tax bite in retirement, I think that those that did better planning to assure that comfortable life have the right to be upset that the tax bite is spent on projects that waste money.


The suggestion to have a federal tax on items bought makes sense to me. Everyone then has skin in the game. AND the wealhty that buy high end items will be paying for that ability to buy those expensive items.
 
Knight said:
I think what is lost in all this is the frustration expressed in post #1. Being an average person not spending a lot of time researching every possible way to minamize the tax bite in retirement, I think that those that did better planning to assure that comfortable life have the right to be upset that the tax bite is spent on projects that waste money.


The suggestion to have a federal tax on items bought makes sense to me. Everyone then has skin in the game. AND the wealhty that buy high end items will be paying for that ability to buy those expensive items.
Click to expand...
Throw in the more I make the more the IRS taxes my Soc. Sec. I made about 20% more this year over last.
 

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