US tax madness

Out of context: Reply #64

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  • JSK0

    Your math dont make sense because you have deductions.

    Gross income of $31k with deduction
    A. $31k - $30k = Profit $1k
    Taxed for $1k

    Gross income of $31k without deduction
    B. $31k - 0 = Profit $31k
    Taxed for $31k

    You did not have gross income of $1k but you had $31k.
    $31k and $1k in gross income differ in tax bracket.

    If all things were to be equal and look at percentage of profit on both income rate, it would be the same.
    $31k - $30k = $1k = 95% deduction
    $1k - $950 = $50 = 95% deduction

    Both of the taxable income / profit would be $1k or $50

    JSK 0Permalink
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    • NO i have nothing against paying taxes but i have a HUBE beef with the way those taxes are calculated.capsize
    • i'm hearing u here, but my deductions only reflected what was needed to make the 31kpr2
    • it doesnt matter because you had money coming in sum of $31k.JSK
    • if dont want to pay for the $1k, get additional deduction of being equal or greater so you can report lossJSK
    • so in other words i'm fucked because i had to spend 30k to make the 31k AND pay for my living expenses, right?pr2
    • no, because you used your living expanse as deduction. Is your apartment / home in the deduction?JSK
    • Think this way, you had 31K, techincally, you should have 50% in bank for taxes. you spent your tax money for deductionJSK
    • only the %50 that i use as my officepr2
    • There you go it has your living expanse covered. Its not government's fault that you dont know how to budget.JSK
    • honestly, it will be around $300-500, why not pay it? and try to avoid audit?JSK
    • yeah but i still have to come up with the rest %50 of the rent and other shit... so instead of leaving that 1k alone...pr2
    • ...they still want a piece of it.pr2
    • that's what i can't comprehend.pr2
    • I would itemize your living expansive and take out the deduction to appear as thought you REALLY made 31K.JSK
    • say you spent 15k in living, so pay tax on 15kJSK
    • well after my jaw draped i just did it, BUT it means i'm fuzzing up the extra 1k BECAUSE their way of...pr2
    • ...calculating the taxes seems out of whack to me.pr2
    • but you are screwing their way. remember living expanse in not deductible.JSK
    • i know, i din't deduct that, but according to the numbers there is no money left over to live onpr2
    • hence you will be audited. I would put at least 30% as your living expanse and get taxed on that. Just to be safe.JSK
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