Tax Refund purchases

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Re: Tax Refund purchases

Postposted on Wed Apr 17, 2013 2:50 pm

Captain Ned wrote:The withholding tables are screwed.

That's an understatement, though in my case I wonder how much of it is due to the fact that because tax tables are graduated/progressive, and my employer has no idea what my wife makes, they can only guess how much to withhold, because they don't REALLY know where we are in terms of where we are in the percentages?
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Re: Tax Refund purchases

Postposted on Wed Apr 17, 2013 3:50 pm

The reason why is pretty simple, it's because tax brackets are marginal. So two people making $45k each filing married with normal individual withholdings - the first has the proper amount withheld individually, but the second is paying marginal rates that begin at $45k, not $0. This is the so-called 'marriage penalty' although the real examples of that are with couples that have a wide disparity in income. A $100k/$25k couple for example...the $25k of income is taxed like it's $100k-$125k of income.
Last edited by MadManOriginal on Fri Apr 19, 2013 8:25 pm, edited 3 times in total.
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Re: Tax Refund purchases

Postposted on Wed Apr 17, 2013 4:09 pm

The way I had it explained to me was that tax rates and withholding tables are indexed to a single income family of 4 with a house, at $75k/year.. That was a couple years ago, so I may be wrong..
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Re: Tax Refund purchases

Postposted on Fri Apr 19, 2013 8:21 pm

I read this thread a few days ago and forgot about it until now.

I noticed in the original pics that the house/mansion had a server room. Sweet!
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Re: Tax Refund purchases

Postposted on Fri Apr 19, 2013 9:04 pm

lolz my refund if I get one wouldn't even buy a lawnmower for that place :)

Too big and too much stuff to maintain, go with something smaller.

Edit - if I get a refund I am going to buy an Ecotech 5532ET ECM motor for the furnace, if the savings in watts are what they say, it should have a 7 month pay back in continuous operation. ... actor.ashx

After that, only things left for reducing hydro is LED lights in basement, and Garage, and when the electric clothes dryer dies replace it with a natural gas one.

(hydro is about 17.6 cents/kwHr up here in Northern Ontario after all fees, taxes, etc. and the rumor is that it's going to increase 40% over the next 5 yrs.
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