Comments on: Tax Planning http://www.mapgirl.net/mfc/2007/09/19/tax-planning/ Just tidbits about money and finance. Mon, 01 Dec 2008 22:25:57 +0000 http://wordpress.org/?v=2.5 By: Single Ma http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154858 Single Ma Thu, 20 Sep 2007 02:51:47 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154858 Oooh, I see now. Key point that I missed. Make sense. Oooh, I see now. Key point that I missed. Make sense.

]]> By: mapgirl http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154754 mapgirl Thu, 20 Sep 2007 01:16:15 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154754 Single Ma: "Put me out of the program for real estate tax relief." There is an income cap on that program and I was trying to make sure that I still get this refund because this also impacts my 1040. I was counting on getting this money back for something. Single Ma:

“Put me out of the program for real estate tax relief.”

There is an income cap on that program and I was trying to make sure that I still get this refund because this also impacts my 1040. I was counting on getting this money back for something.

]]> By: Single Ma http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154650 Single Ma Wed, 19 Sep 2007 23:30:47 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154650 I should have said "earnings" not salary. I should have said “earnings” not salary.

]]> By: Single Ma http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154648 Single Ma Wed, 19 Sep 2007 23:30:00 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154648 I've never known anyone who DIDN'T want their salary to hit another tax bracket. LOL I'd rather beef up my 401k to offset the higher income than have a lower income for tax purposes, plus reduce 401k for debt reduction. Maybe I'm misunderstanding something here. I’ve never known anyone who DIDN’T want their salary to hit another tax bracket. LOL I’d rather beef up my 401k to offset the higher income than have a lower income for tax purposes, plus reduce 401k for debt reduction. Maybe I’m misunderstanding something here.

]]> By: Sistah Ant http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154447 Sistah Ant Wed, 19 Sep 2007 19:51:53 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154447 Yeah that reminds me, I want to make sure my withholding isn't too high (and won't be after I start contributing to my 401K). IRS Withholding calculator, here I come! Yeah that reminds me, I want to make sure my withholding isn’t too high (and won’t be after I start contributing to my 401K). IRS Withholding calculator, here I come!

]]> By: mapgirl http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154437 mapgirl Wed, 19 Sep 2007 19:40:40 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154437 SJean - I do understand marginal tax bracketing, but I appreciate your comment, since that might not be something other readers understand. I just didn't want to hit the other bracket at all. Pinyo - My debt is a mix, and when I ran the numbers, it does look like I am better off stopping my 401k contribution, but only ever so slightly. I'd have to start doing better in the market to flip the scenario in favor of continuing to save vs. debt payoff. And then there is the psychological housecleaning that comes from being debt free, which is what I am really after. :-) SJean - I do understand marginal tax bracketing, but I appreciate your comment, since that might not be something other readers understand. I just didn’t want to hit the other bracket at all.

Pinyo - My debt is a mix, and when I ran the numbers, it does look like I am better off stopping my 401k contribution, but only ever so slightly. I’d have to start doing better in the market to flip the scenario in favor of continuing to save vs. debt payoff. And then there is the psychological housecleaning that comes from being debt free, which is what I am really after. :-)

]]> By: Means No Cents http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154421 Means No Cents Wed, 19 Sep 2007 19:21:08 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154421 Always a great idea to start thinking early about taxes ...especially when you have so many various means of income and savings! Always a great idea to start thinking early about taxes …especially when you have so many various means of income and savings!

]]> By: Pinyo http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154334 Pinyo Wed, 19 Sep 2007 17:22:41 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154334 Unless the interest on your debt is really really high, I don't see how that can offset the benefits of 401k -- i.e., tax deduction and company match (if your company offer this). Unless the interest on your debt is really really high, I don’t see how that can offset the benefits of 401k — i.e., tax deduction and company match (if your company offer this).

]]> By: Lauren Wolfe: It’s Back to School Season, and Congress Finally Passes a Student Aid Bill That Matters at loan2guide.com http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154329 Lauren Wolfe: It’s Back to School Season, and Congress Finally Passes a Student Aid Bill That Matters at loan2guide.com Wed, 19 Sep 2007 17:17:43 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154329 [...] Tax PlanningI was really worried that my ad revenue and getting a bonus from work would bump me up a bracket this year and put me out of the program for real estate tax relief. However, I just ran some figures and it looks like I will actually end up safely under. [...] […] Tax PlanningI was really worried that my ad revenue and getting a bonus from work would bump me up a bracket this year and put me out of the program for real estate tax relief. However, I just ran some figures and it looks like I will actually end up safely under. […]

]]> By: SJean http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154140 SJean Wed, 19 Sep 2007 13:50:21 +0000 http://www.mapgirl.net/mfc/2007/09/19/tax-planning/#comment-154140 It seems to be a common misconception that if you reach the upper limit of a tax bracket (say, 25%), then all your money is taxed at the next level (28%). Really, only the ammount that is over the 25% limit is taxed at the next level. This explains it more clearly: http://www.irs.gov/formspubs/article/0,,id=164272,00.html I apologize if you already knew this and I just misinterpreted your post! It seems to be a common misconception that if you reach the upper limit of a tax bracket (say, 25%), then all your money is taxed at the next level (28%). Really, only the ammount that is over the 25% limit is taxed at the next level.
This explains it more clearly: http://www.irs.gov/formspubs/article/0,,id=164272,00.html

I apologize if you already knew this and I just misinterpreted your post!

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