Income tax witholding and life changes

ATN_Pilot said:
I pay about $1,200/yr, but most of that deals with my business. Most people know so little about taxes that they'll at least break even by hiring the accountant (assuming they're able to itemize). You also need to consider the time value of money. If you waste a day doing your taxes, that's a day trip you could pick up instead. Assuming an RJ captain making $70/hr and a day trip worth 6 hours, that's $420 he could earn in the same period of time. Pick up the day trip for $420, hire an accountant to do the taxes for $200, you just got an extra $220 for the same amount of time spent working.

Also consider that money spent on tax preparation is deductible. That $200 really only cost you $150.
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So I probably don't need a full time accountant. Heh. Pay em a few bucks to do some personalized W4 tweaking to get the ideal amount of tax removed from each paycheck. Sounds like a grand idea.
 
ATN_Pilot said:
I pay about $1,200/yr, but most of that deals with my business. Most people know so little about taxes that they'll at least break even by hiring the accountant (assuming they're able to itemize). You also need to consider the time value of money. If you waste a day doing your taxes, that's a day trip you could pick up instead. Assuming an RJ captain making $70/hr and a day trip worth 6 hours, that's $420 he could earn in the same period of time. Pick up the day trip for $420, hire an accountant to do the taxes for $200, you just got an extra $220 for the same amount of time spent working.

Also consider that money spent on tax preparation is deductible. That $200 really only cost you $150.
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For a business or self employed that makes sense. Most should be able to get close to 0 if they would read the w-4 instructions. :bang:
 
Oh, I agree, I'm just talking about having someone prepare your taxes for you. It's a smart investment for most people. You can get the preparer to generate a good number for you for your W-4 at the same time he/she does your taxes.
 
Cessnaflyer said:
For a business or self employed that makes sense. Most should be able to get close to 0 if they would read the w-4 instructions. :bang:
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I did...

The W4 has a $2400 swing for me (in years past not owning a home). It is the difference between owing $800 and getting $1600 back. That's for 1 exemption ($1600 back) or 2 exemptions (owe $800).
 
ATN_Pilot said:
Oh, I agree, I'm just talking about having someone prepare your taxes for you. It's a smart investment for most people. You can get the preparer to generate a good number for you for your W-4 at the same time he/she does your taxes.
Click to expand...
Those h&r block people with all their knowledge! ;)
 
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