PDA

View Full Version : This Just In: Income IS Taxable


Davian93
06-22-2010, 08:29 AM
http://www.foxnews.com/us/2010/06/22/gulf-coast-residents-confused-frustrated-claims-payouts-taxed/

Seriously people...you're surprised that income is taxable? Get over it...all income is taxable, nothing is new about this.

I also always love the "It pushed me into a higher tax bracket so I LOST money" Sorry moron, but a graduated tax system doesn't work that way. You might lose a higher percentage of the income earned OVER that mark but it doesn't cost you money.

~rant over~

Sei'taer
06-22-2010, 08:32 AM
http://www.foxnews.com/us/2010/06/22/gulf-coast-residents-confused-frustrated-claims-payouts-taxed/

Seriously people...you're surprised that income is taxable? Get over it...all income is taxable, nothing is new about this.

I also always love the "It pushed me into a higher tax bracket so I LOST money" Sorry moron, but a graduated tax system doesn't work that way. You might lose a higher percentage of the income earned OVER that mark but it doesn't cost you money.

~rant over~


AHA! SO you do understand the system!

Davian93
06-22-2010, 08:36 AM
AHA! SO you do understand the system!

Up next: Water is Wet, Rocks are Hard...more at 11!

Sarevok
06-22-2010, 09:08 AM
Actually, I can see where these people's surprise is coming from. They got this money from the government. If that same government wanted to tax it, why not simply withhold said tax in the first place??

Davian93
06-22-2010, 09:10 AM
Actually, I can see where these people's surprise is coming from. They got this money from the government. If that same government wanted to tax it, why not simply withhold said tax in the first place??

For the same reason they don't automatically withold it from Unemployment Compensation...its on you as an adult citizen to do this for yourself. Basically, stupid people are stupid and automatically expect a handout these days.

Sarevok
06-22-2010, 09:15 AM
For the same reason they don't automatically withold it from Unemployment Compensation...its on you as an adult citizen to do this for yourself. Basically, stupid people are stupid and automatically expect a handout these days.

True. I'm not saying they're smart. I'm just pointing out that it's not as stupid as you make it out to be.
Also note that most of these people may never have had unemployment compensation and were not aware of the regulations surrounding that.

JSUCamel
06-22-2010, 09:30 AM
[QUOTE=Sarevok;102106Also note that most of these people may never have had unemployment compensation and were not aware of the regulations surrounding that.[/QUOTE]

This. I remember my first time I had to claim unemployment, I was completely clueless as to how the whole thing worked. I didn't know I had to claim it on my taxes, I didn't know that contract work didn't count toward "employment" (my boss at the contract job got mad cause I told unemployment that he was my boss and they told him he was responsible for paying into my unemployment, when that's not how it works at all and I had to go fill out other forms to explain that I was mistaken). It's not a simple process at all, so I can totally understand being upset when you get a letter saying you owe X amount of money when it was unemployment compensation. I got one of this this year for last year's taxes (I knew I was supposed to pay, but somehow I forgot).

Davian93
06-22-2010, 09:33 AM
True. I'm not saying they're smart. I'm just pointing out that it's not as stupid as you make it out to be.
Also note that most of these people may never have had unemployment compensation and were not aware of the regulations surrounding that.

Its compensation for lost income...I mean, sorry but ignorance is no excuse.

Crispin's Crispian
06-22-2010, 10:35 AM
Its compensation for lost income...I mean, sorry but ignorance is no excuse.

More than that, this money is not coming from the government at all, it's coming from BP. Maybe that's the root of the problem--these people thought it was a gift.

Davian93
06-22-2010, 10:43 AM
More than that, this money is not coming from the government at all, it's coming from BP. Maybe that's the root of the problem--these people thought it was a gift.

Well, gifts are taxable. At least gifts of this amount. Almost everything is taxable by the IRS. The only things that aren't are disability income and a court settlement that pays for medical costs...even pain/suffering/damages money is taxable in a court settlement.

Brita
06-22-2010, 12:14 PM
Well, gifts are taxable. At least gifts of this amount. Almost everything is taxable by the IRS. The only things that aren't are disability income and a court settlement that pays for medical costs...even pain/suffering/damages money is taxable in a court settlement.

Even your lottery winnings are taxable, you poor socialist Americans :p

Crispin's Crispian
06-22-2010, 12:33 PM
Well, gifts are taxable. At least gifts of this amount. Almost everything is taxable by the IRS. The only things that aren't are disability income and a court settlement that pays for medical costs...even pain/suffering/damages money is taxable in a court settlement.I know that, and I was being facetious. Still, I wonder if that was part of the confusion. These people feel like they are owed money from BP, and some of them certainly are. It's just easy to forget that everything you get over a certain amount is taxable.

The most important point, though, is:

Its compensation for lost income.

You'd think the word income might ring a bell with a few folks...

Davian93
06-22-2010, 12:34 PM
Even your lottery winnings are taxable, you poor socialist Americans :p

Yeah, that one sucks. If I were ever to win millions, I'd be pissed to lose 40% of it off the bat to taxes. Still, better than not winning.

Zanguini
06-22-2010, 05:47 PM
Up next: Water is Wet, Rocks are Hard...more at 11!

some rocks are soft...