The IRS has deemed me to be the one who is perpetually audited and screwed over. They now want me to pay them 20,000$ for having made a whomping 65,000 last year. How this is in any way fair i have no idea. Pretty much any money i saved this year is straight gone, on top of having to max out the amount i can withhold from my paycheck to ensure i dont get dinged again this year. What I find interesting is any tax rate needs to immediately have 12% attached to it, since FICA steals another 12%. So really that person getting taxed 10% income tax rate is really at 22%, and the 22% is really 34%, etc.
This year it came from a surprise annuity payment that ended up being taxable income. Didn't even know I had it until this year, and the person who died and left it to me died many many years ago now. I had to contact the pension department and tell them to cancel the rest of the payments so i dont get hit with additional taxes on it.
What I find interesting is the IRS give you zero breaks for losing money, or carrying loses, but grinds you into the ground for earning money. So it's either 0, you pay nothing, or +X and you pay a percent on the X amount. It's a lose lose in any direction
CovidHoldout 1 points 1.7 years ago
This year it came from a surprise annuity payment that ended up being taxable income. Didn't even know I had it until this year, and the person who died and left it to me died many many years ago now. I had to contact the pension department and tell them to cancel the rest of the payments so i dont get hit with additional taxes on it.
What I find interesting is the IRS give you zero breaks for losing money, or carrying loses, but grinds you into the ground for earning money. So it's either 0, you pay nothing, or +X and you pay a percent on the X amount. It's a lose lose in any direction