dls@panda.UUCP (Diana L. Syriac) (02/06/85)
I've just calculated my taxes for this year and I find for the first time in all my years of income taxes (< 10 yrs), that we may actually have to PAY in some additional money to good old IRS. My question concerns directly the new income averaging form. This year, it's using the past three years instead of the past four years, plus, the numbers to multiply/divide the total past years has changed also and is figured differently. Last year (and for at least 3 years before that), it was calculated by multiplying the total past 4 years by .3 (30%). This year, you divide by 3, then multiply by 1.4, which is the equivalent of multiplying the total past 3 years by .47 (47%). If I figure my "total average" using the old way, I eventually get a difference of $12000 of averagable income. Figuring it the new way I eventually get a difference of $24 of averagable income (remember, it has to be greater than $3000 to use the form). Am I doing something wrong, or is the government just trying to make us stop using this form? Have others had this problem as well? I'd appreciate any info on the new Income Averaging forms. thank you. Diana L. Syriac decvax!genrad!panda!dls
preston@fortune.UUCP (Carol Preston) (02/08/85)
In article <280@panda.UUCP> dls@panda.UUCP (Diana L. Syriac) writes: >My question concerns directly the new income averaging form. This year, > ... >Am I doing something wrong, or is the government just trying to make us >stop using this form? Have others had this problem as well? Yes they are trying to make us stop using this form. My mom works at H&R Block. One of the things she did over the summer was to go through a sampling of last years forms and see if the people who income averaged last year could have income averaged using this new method. She said that only about 1/3 of the people could. The thing that makes me the maddest was this would have been the first year I could have done it the old way. -- Carol Preston {hpda, ihnp4, allegra, ucbvax!dual}!fortune!preston (415) 594-2891 Fortune Systems, 101 Twin Dolphin Pkwy, Redwood Shores, CA 94065
john@hp-pcd.UUCP (john) (02/09/85)
<<< Someone at the IRS must have realized that inflation helps anyone who income averages and helps offset "Bracket Creep". Since they had to give that up and start adjusting the tax rates for inflation they must have needed to get the money back somehow. What irks me is that 4 years ago I was in school and had some really nice low income years to average in with my current income. Now Poof! its gone in the stroke to a pen. John Eaton !hplabs!hp-pcd!john
tower@inmet.UUCP (02/14/85)
Re: New Income Averaging Form
Just another case of Reagonomics:
Take from the middle class, and give to the upper class.
I too am losing out!
-len tower UUCP: {ihnp4,harpo}!inmet!tower
Intermetrics, Inc. INTERNET: ima!inmet!tower@CCA-UNIX.ARPA
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PHONE: (617) 661-1840guy@sdcc12.UUCP (Guy A. Lewis) (02/19/85)
> I've just calculated my taxes for this year and I find for the first time > in all my years of income taxes (< 10 yrs), that we may actually have to > PAY in some additional money to good old IRS. > > My question concerns directly the new income averaging form. This year, > it's using the past three years instead of the past four years, plus, the > numbers to multiply/divide the total past years has changed also and is > figured differently. Last year (and for at least 3 years before that), it > was calculated by multiplying the total past 4 years by .3 (30%). This > year, you divide by 3, then multiply by 1.4, which is the equivalent of > multiplying the total past 3 years by .47 (47%). > > If I figure my "total average" using the old way, I eventually get a > difference of $12000 of averagable income. Figuring it the new way I > eventually get a difference of $24 of averagable income (remember, it has > to be greater than $3000 to use the form). > > Am I doing something wrong, or is the government just trying to make us > stop using this form? Have others had this problem as well? > > I'd appreciate any info on the new Income Averaging forms. > > thank you. > > Diana L. Syriac > decvax!genrad!panda!dls My question is even simplier, "What are the qualifications for being able to income average this year?" Last year my wife and I had a gross income of ~$6000 ( I was in school full time and didn't work much). Not realizing how much we were making this year ( Now that I am working full time or there abouts ) we have made in the neiborhood of ~$20,000. And worst of all we didn't change our tax status so it looks as if we may have to pay in $400. I would really like to at least not have to pay, of course getting a refund would be nice too. Can anyone help me?? Thanks in advance, Guy A. Lewis -- ihnp4 \ akgva \ decva > sdcsvax!sdcc3!guy dcdwest / ucbvax / All good things must come to an en....