Americans seeing lower tax bills

[RamboLiberal]

Source: MSNBC/AP

WASHINGTON - You wouldn't know it by the Tax Day rhetoric, but Americans are paying lower taxes this year, even with increases passed by many states to balance their budgets. Don't expect it to last.

Congress cut individuals' federal taxes for this year by about $173 billion shortly after President Barack Obama took office, dwarfing the $28.6 billion in increases by states.

In the next few years, however, many can expect to pay more. Some future increases were enacted as part of Obama's health care overhaul. And former President George W. Bush's tax cuts expire in January. Obama and the Democrats want to renew only some of them, thus raising taxes for individuals making more than $200,000 and couples making more than $250,000.

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The most generous was Obama's Making Work Pay credit, which gives individuals up to $400 and couples up to $800 for 2009 and 2010. The $1,000 child tax credit was expanded to more families, and the working poor can qualify for as much as $5,657 from the Earned Income Tax Credit.

There were also credits for qualified families who buy new homes or make energy improvements to existing ones, as well as tax breaks to help pay college tuition or buy new cars.


Read more: http://www.msnbc.msn.com/id/36521481/ns/business-personal_finance/

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I can attest to the tax breaks this year. Thanks to the Making Work Pay, Home Improvement Energy, and breaks for a new car I'm getting $800+ back more than I did last year.

[maxsolomon]

1. getting a return, whereas under *

i always owed.

part of it is that i'm at 80% salary, but hell, i've still got a job!

[Sherman A1]

2. I am paying more than last year with less income

didn't work out too well for me.

[Uben]

3. I got the news today......

......I'm getting back $7200 ! ! Wowser!

Darn that Obama fellow! Now I gotta figure out what to do with all that money.

[DesertFlower]

17. good for you. i've never gotten

a refund that high.

[diane in sf]

19. You are getting too much taken out! But I guess it could be a good way to force yourself to save...

[Uben]

20. They don't take it out, I send it in....

I am retired and pay quarterly estimates based on the previous years taxes. In 2008, I sold some stock cuz the bottom was fallin out, and I was required by law to pay taxes on the profits (capital gains) I had made on the stock since I bought it. That increased my quarterly payments for 2009. I knew I was paying too much, but the amount I paid was calculated by my accountant who used standard formulas based on the previous years taxes. Soooooooooooooo....

I don't care who you are, you get a check for $7200..........you happy!

[Ian David]

4. Glenn Beck warns, Do NOT cash your IRS Refund check! IT'S A TRAP!

Glenn Beck warns, Do NOT cash your IRS Refund check! IT'S A TRAP!
http://upload.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=8115466&mesg_id=8115466

[ejpoeta]

7. let me gess... sign it and send it to him??

[Ian David]

12. No, send it back to the IRS.

I told someone today at the TeaKlan rally to do that because Glenn Beck says so.

She told me I was probably right.

[No Elephants]

24. Good. It will help with the deficit. Not much, but it will help.

Why do I get the feeling this is the one piece of advice from Porky Pig that his little pigbots will ignore?

[ejpoeta]

5. yes, we are paying less taxes but NOW is when the tea partiers bitch about taxes!!

[LisaM]

6. I am getting back a little less, too

Don't know why, exactly.

[WatchWhatISay]

23. Did you lose some deductions or credits that you used to get?

[Oregone]

8. Super. Deficits don't matter

Charge it to the children

[SpartanDem]

9. I got my largest return ever

[goclark]

10. Getting Back 1,400

:bounce:

I had $10,000 worth of Dental Implants, and still need one more.
That hurt in the bank acct. and they HURT!

Also got to write off the tax on my Ford Fusion

[high density]

11. If only I was making $200k a year so my taxes could go up

I'd really hate to be in that situation.

[Newest Reality]

13. Has anyone noticed the new margins?

I think this was implemented this year?

http://taxes.about.com/od/2009taxes/qt/2009_tax_rates.htm

It used to be that, if your total earnings for the year were below the poverty line, there was no tax rate, so if it was all cash, you were not taxed. Now, I know you get a personal exemption and so the amount you pay on is less, but notice now that the poor have a ten percent income tax and basically, everyone with income has to file ... if I read that correctly. Sounds convenient.

Maybe I have the old way wrong, but that's how I remembered it.

When did that squeak in and who was behind it?

[nickinSTL]

15. hm. well...

that may be the case, but my wife - who made well below poverty level last year (and for stupid legal reasons we have to both file as single) - seems to be getting a refund - at least last I heard.

:shrug:

[xchrom]

14. Recommend

[DesertFlower]

16. we had to pay. had some extra income

from interest on an annuity my mom put in my name, but we got a nice refund from the state. we usually owe the feds a few bucks, but always get back from the state.

we also have to pay tax on 85% of my social security. i told hubby to adjust his withholding.

[FailureToCommunicate]

18. Meanwhile corporations pay EVEN LOWER taxes...

...sometimes zero.

Disgusting.

[tomm2thumbs]

21. Kick & recommend

[Hulk]

22. Don't tell the teabaggers....

...hell, they'll lose their purpose in life.

Town idiots.

[No Elephants]

25. And the Teabaggers still believe with all their hearts that Obama raised taxes.