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Tax Question

Discussion in 'Off Topic [BG]' started by Bocete, Mar 30, 2015.


  1. Bocete

    Bocete My E string is 36 1/4" long

    Sep 30, 2006
    Hey, hope you can help me.

    I've had my tax papers ready for weeks but I am missing one form. 1099-G from the California State, showing the amount of last year's tax return. This is taxable income.

    I called them to send me those forms again but they sent my a letter with that number instead. One copy, not three. Given that their phone lines are crazy busy, I may not be able to get them to send me the proper forms on time.

    Do I need to supply these forms when filing my returns? I understand that both the state and the federal tax ppl received the record of my last year's return already, that's how they can check whether I'm being truthful. Do I need to send them one of my own copies too, or can I just include the amount I received and be done with it?

    Any similar experience of story?

    Thank you so much.
     
  2. Bocete

    Bocete My E string is 36 1/4" long

    Sep 30, 2006
    I got ahold of them and they will send the forms to me. Hopefully right this time.

    Mods, please delete, and sorry for the inconvenience.
     
  3. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    In California a tax refund from last year is taxable again this year? That is insane, but well, it is the Peoples Republic of California.
     
  4. Bocete

    Bocete My E string is 36 1/4" long

    Sep 30, 2006
    It is income I originally earned normally, except that the state held it on their account for a while. I think there should be interest on this maybe, but it should definitely be taxable.
     
  5. fisticuffs

    fisticuffs Commercial User

    May 3, 2011
    Madison, WI
    Yep not a CA thing at all. State refunds are taxable income. State taxes are Federal expenses you get to deduct, at least in my state.
     
  6. Bocete

    Bocete My E string is 36 1/4" long

    Sep 30, 2006
    Same in CA.
     
  7. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    Oh, I forgot. Those of you who live in lesser states have to pay state income tax. Thanks for the reminder.
     
    sissy kathy likes this.
  8. fisticuffs

    fisticuffs Commercial User

    May 3, 2011
    Madison, WI
    What's your sales tax rate? We all end up paying, just a matter of how and who.

    Everyone wants everything, no one wants to pay for it. Such is life.
     
    PortlandBass77 likes this.
  9. Stewie26

    Stewie26 Supporting Member

    California state income tax can be as high as 13.3% for top income bracket. We are the highest in the nation. Hey.... someone has to pay for this nice climate.:smug:
     
  10. fisticuffs

    fisticuffs Commercial User

    May 3, 2011
    Madison, WI
    Ahhh, that explains why no businesses ever open up shop there or why no one wants to live there.
     
    Bocete likes this.
  11. Stewie26

    Stewie26 Supporting Member

    Actually there is no other place I would rather live. But with that said, it is pay to play.
     
  12. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    8% sales tax, no income tax. Sales tax is always more fair. Everyone pays according to their desire to spend. And, you don't have to deal with the paperwork at the end of the year. It is a pay as you go system where the vendor has to deal with the paperwork and paying the state. Don't know what state you are in. I'm in Texas. Hope you aren't like California where income tax rates go from 1% to 13.3% with most people falling in the 9.3% range and sales tax rates at 7.5% plus whatever the locality charges which can go up to 10%. Add that on to the Federal income tax rates and with any luck and you don't make enough to buy an overpriced house, you get to keep almost half of the money you earned.
     
  13. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    LOL. Nice climate is subjective. I would find it boring. California is a beautiful place, no doubt. Thanks for paying for it so I can come visit now and again.
     
    Stewie26 likes this.
  14. Stewie26

    Stewie26 Supporting Member

    Yep...the local, state and feds are our uninvited business partners, like it or not.
     
    Last edited: Mar 30, 2015
  15. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    Good analogy. Don't we all want a business partner that does none of the work, demands how, when, and where we do the work, and takes a large chunk of the money and if we die, they take half of what is left.
     
    Stewie26 likes this.
  16. *Sales tax is more unfair

    It most effects the poor and the homeless who have to use a larger percentage of income just to buy everyday things like clothes. It's pretty much the government trying to get "the fair share" out of people who don't have enough income to have to pay income tax. One of the reasons I like Oregon so much.
     
  17. GuiTuber

    GuiTuber

    Feb 19, 2015
    San Antonio, TX
    If you decide to deduct your state income tax, on your federal return, then you have to claim the refund as income. If you're not going to itemize, which is where you would deduct your state income tax, then you do not have to claim the refund as income.
     
    kentiki and BboogieXVII like this.
  18. Gravedigger Dav

    Gravedigger Dav Supporting Member

    Mar 13, 2014
    Fort Worth, Texas
    I lived in Oregon for about 10 years. I really like it there. I disagree with you take on which tax is more fair.
     
  19. GuiTuber

    GuiTuber

    Feb 19, 2015
    San Antonio, TX
    A "use" tax, when not made to be progressive, is unfair to low-income folks.

    Look at some common products the average person would buy, e.g. toilet paper, household cleaning products. Say the sales tax rate is 8%. Take two people, one making a $100 a week and another making $500 a week. They use the same amount of those products each week. Let's say they spend $10 a week on those products. The guy making $100 is spending .8% of his income on the tax while the guy making $500 a week is only spending .16% of his income on the tax.

    Still think it's fair?
     
  20. jmattbassplaya

    jmattbassplaya Looking for a gig around East Islip, NY!

    Jan 13, 2008

    BOOTSTRAPS!!!!




    :D
     

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