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I Hate Taxes!

March 24th, 2007 at 06:46 pm

Well, obviously. Everyone else does, too, I'm sure. DH found out why they took so much out of his bonus check this year. Apparently our wonderful IRS branch of our government has a new tax law in effect. (If you didn't recognize it, that last sentence was dripping with sarcasm). Bonuses are now considered income and are taxed at the higher 25% rate as well.

But you know what really sucks? Reimbursements are taxable this year. Reimbursements? How the heck can they consider the company giving you your own money back as taxable income!?! And at the higher 25% also. I mean come on. This one is utterly ridiculous!

I know we will get it back with a few thousand dollars with the next refund. But they already take way more out than they should. As I've moaned about many times before, we can't do anything about it. Because he works 2 weeks on and 2 weeks off, he only gets paychecks for 2 weeks out of every four, but they have to tax his checks as if he were making the same amount all four weeks (which would like double our income and put us in a way higher tax bracket). Our lovely IRS does not allow exceptions to this rule. And that extra $3600 each year would have come in handy during the year. That's $300 a month more we would net if we could have it through the year.

I really wish something could be done. We already take the maximum of allowable exemptions, just to get as much as we can. DH plagues HR each new tax year to see if it has changed, but nope. Of course it is in the government's best interests to not change the laws, they get a whopping (to me) $3600 a year from us that they get to earn interest on.

Anyway, just a rant. I now return you to your regularly scheduled programming.

4 Responses to “I Hate Taxes!”

  1. shadon Says:

    If reimbursements are taxable, does that mean you can then counter-claim a tax deduction for the expense? Would that then cancel out the tax payable on the reimbursement $?

    That's how it works here in Aus but I'm (obviously) not familiar with U.S. Tax laws.

  2. LuckyRobin Says:

    I have no idea. I just know what my husband told me.

  3. debtfreeme Says:

    can he have his company pay him "monthly"? Meaning he only gets one check a month?

  4. LuckyRobin Says:

    Nope, he can't get paid monthly and also they can't or won't split the pay up over the course of 4 weeks, either. Drives me crazy.

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