Question about tax deducted from paycheck

[jerichoholicninja]

I can't find the link, but for my Econ unit on gov't revenue I quote a number that businesses and individuals in the US spend roughly $150 Billion annually to help them file their taxes.

 

Count me as someone in favor of a flat tax, or at least a much flatter tax code. I like simplicity. I also think we need lower taxes to help out businesses. but now I'm going to push towards being political. Really, I'm glad I don't make these decisions

 

The tax preparer lobby would have none of that!

[igor67]

The deductions that come out from each paycheck are effectively a simple system, take the current pay rate multiply by the number of pay periods for that company and deduct according to what the person has said there biggest deductions will be. It works pretty well. I've been annoyed myself by the bonus issue, but trying to fix that would only complicate the upfront part of the system and there would still be potential complications at year end (like what about people who lose their job? Get a significant promotion?). As a former small business co-owner I raked in every tax advantage we could find... never helped move us remotely out of the just above poverty line. Even in higher tax states I think people over estimate how much they can truly gain by aggressively playing the system.

[FVBrewerFan]

I overpay, and overpay by a lot. Its like a savings plan for me. Ya, ya, ya I know I'm giving the government an interest free loan. I'd piss away some, to probably most of the money on something I don't need otherwise. When I get my windfall of cash I pay down the mortgage more, pay off car loans, etc.

 

I'll give you advice you didn't ask for either. Why not set up an account with Schwab or Fidelity, etc. and have x amount automatically deducted from every paycheck? Then you can't piss it away, it's exactly the same as taking extra tax money out. The difference is, your money is growing in that account instead of sitting in the IRS.

[BrewersSuperCollector]

I overpay, and overpay by a lot. Its like a savings plan for me. Ya, ya, ya I know I'm giving the government an interest free loan. I'd piss away some, to probably most of the money on something I don't need otherwise. When I get my windfall of cash I pay down the mortgage more, pay off car loans, etc.

 

I'll give you advice you didn't ask for either. Why not set up an account with Schwab or Fidelity, etc. and have x amount automatically deducted from every paycheck? Then you can't piss it away, it's exactly the same as taking extra tax money out. The difference is, your money is growing in that account instead of sitting in the IRS.

 

How much would I have to pay one of those types of companies.

[FVBrewerFan]

I overpay, and overpay by a lot. Its like a savings plan for me. Ya, ya, ya I know I'm giving the government an interest free loan. I'd piss away some, to probably most of the money on something I don't need otherwise. When I get my windfall of cash I pay down the mortgage more, pay off car loans, etc.

 

I'll give you advice you didn't ask for either. Why not set up an account with Schwab or Fidelity, etc. and have x amount automatically deducted from every paycheck? Then you can't piss it away, it's exactly the same as taking extra tax money out. The difference is, your money is growing in that account instead of sitting in the IRS.

 

How much would I have to pay one of those types of companies.

 

Probably $0 in most cases. If you open a new brokerage account and set up automatic paycheck deductions, I would be surprised if you had to pay any fees at all.