Hello all, I have just graduated and am waiting for boards and this has been bugging me for a while.
I am single, living in an apartment and plan on working as many hours as possible for the first two years in my present position and then do some travel nursing for about a year or so.
I want to pay off my credit cards/student loan, new truck, and then save a big chunk of change so I can buy my dream house within three years or so.
Without deductions, a plan or a sound strategy I am afraid Uncle Sam is going to rape me. Can anyone give me some advice on taxes and basic strategies to help achieve my goal?
Specializes in Case mgmt., rehab, (CRRN), LTC & psych.
What's the difference between claiming 9 vs 2 dedections, or vs any other number?
Let's assume I earned $2,500 in a two-week period. If I claim 2 deductions, I will take home about $1,600 as net pay. If I claim 9 deductions, I will take home about $2,350 as net pay. The more deductions you claim, the less taxes are deducted.
Let's assume I earned $2,500 in a two-week period. If I claim 2 deductions, I will take home about $1,600 as net pay. If I claim 9 deductions, I will take home about $2,350 as net pay. The more deductions you claim, the less taxes are deducted.
Do I have to pay it back at the end of the year when I file for my tax return?
I am assuming that after all the write offs and pre tax contributions such as property taxes, traditional IRA contributions, 401(k) pre-tax contributions, student loan interest, and medical/dental expenses you may come out even.
I may claim 4 for my first year and see, I would hate to get slammed and owe "Sam" a bunch of money.
Specializes in Case mgmt., rehab, (CRRN), LTC & psych.
I am assuming that after all the write offs and pre tax contributions such as property taxes, traditional IRA contributions, 401(k) pre-tax contributions, student loan interest, and medical/dental expenses you may come out even.
I may claim 4 for my first year and see, I would hate to get slammed and owe "Sam" a bunch of money.
I am interested as well.
In my opinion it is better to break even than to pay a large amount of taxes or receive a large refund check. I'd much rather break even.
Yes it is much better to break even than to recieve a refund check. Why give Uncle Sam an interest free loan? Heck no!
Be advised, if your deduction # on your W-2 is a 'high' number (7+, I think) you trigger a notice. It does not matter (unless you have something to hide!)
In addition make sure you pay at least 90% of your taxes. If you wind up owing more than 90% of the amount due, you will be hit with an underpayment penalty. Folks with mortgages and lots of itemized deductions usually don't have underpayment problems.
I am single with no dependents and claim 4. I calculate a few times a year and adjust that number accordingly. For the last 5 years I've always broken even.
There are a lot of great paycheck calculators around to help you make the most of pre-rax investments, 401(K)'s and manage your taxes.
I try to "break even" with my taxes. I don't want to give the government an interest-free loan ... but I also don't want to have to pay a penalty because I did not have enough deducted. That happened to me once -- and while the size of the penalty was less than $50, it forced me to have to file quarterly for the next year. I hated that hassle. So now I make sure I have enough deducted to avoid the penalty and the quarterly filing requirement.
As a single person, my only big deductions are my mortgage interest and my state income taxes. I can't deduct any business deductions or healthcare deductions, etc. because they don't add up to 5% of my total income. Also, I have a little income from investments that doesn't have any taxes withheld. So I take 1 less deduction than I am entitled to. I declare zero deductions and then get a small refund.
Without deductions, a plan or a sound strategy I am afraid Uncle Sam is going to rape me. Can anyone give me some advice on taxes and basic strategies to help achieve my goal?
Please do not equate rape with the requirement that you pay your fair share of taxes. There can be no legitimate comparison between these two actions.
It is very inappropriate. There are other words in our language that could be used that would be more appropriate.
Please do not equate rape with the requirement that you pay your fair share of taxes. There can be no legitimate comparison between these two actions.
It is very inappropriate. There are other words in our language that could be used that would be more appropriate.
Inappropriate? using the word "rape" as an analogy for paying of taxes is inappropriate? I guess maybe, I never imagined it could be but I will try to be more PC in the future:eek:.
Sometimes on chatboards, television and areas with open communication you will find words that may be offensive to you or you may also use words or phrases that others may take as a personal attack (hint).
Sometimes the best action is no action at all and turn your head. Nothing here was said in malice nor with any intent to demean, insult or hurt anyone.
Thanks to everyone else who remained on the topic (for what is was) and giving a lot of great info.
Inappropriate? using the word "rape" as an analogy for paying of taxes is inappropriate? I guess maybe, I never imagined it could be but I will try to be more PC in the future:eek:.
Sometimes the best action is no action at all and turn your head. Nothing here was said in malice nor with any intent to demean, insult or hurt anyone.
It has nothing to do with PC, it has to do with a very abusive, injurious act. As a healthcare worker, many of us deal with seeing the horror of this crime, and helping the survivors cope. Rape is an act meant to demean, injure and insult others. Using the term casually for something that is merely annoying and not the horror that it is, is more than just merely "not pc".
Sorry, some of us just don't turn our heads and take no action, when we see the hurt that such misuse of words cause. Because words have meaning.
It has nothing to do with PC, it has to do with a very abusive, injurious act. As a healthcare worker, many of us deal with seeing the horror of this crime, and helping the survivors cope. Rape is an act meant to demean, injure and insult others. Using the term casually for something that is merely annoying and not the horror that it is, is more than just merely "not pc".
Sorry, some of us just don't turn our heads and take no action, when we see the hurt that such misuse of words cause. Because words have meaning.
TheCommuter, BSN, RN
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