Federal Incomes Taxes- standard or itemized deductions

No clue. I give it to my CPA. He does his thing. I sign. Done.

Interesting (to me anyway) story. Run if you choose. My dad was a doctor. Doctor's are audited on average every 7 years, or at least were in his time. My mom did all his books, accounting and taxes. Audit letter comes from IRS. Says bring A through R or similar long list of records and stuff and be prepared for 2 days. My mom takes it all and goes at 9 the appointed morning. She's home about 11. We asked if she already was on lunch. Nope. Finished. What? The guy spent about 90 minutes looking at her records etc. and said they were the best set he'd ever seen, that she obviously knew more than most of his co-workers, and that she should leave and let him move on to someone they might get more money out of. In 43 years practicing medicine after that my dad was never audited again. I don't know but I suspect that auditor flagged his account saying if my mom signed as preparer to not waste time auditing.
Auditing rates have crashed in recent years, actually. The odds of being audited are about 1 in 1500 if you don't have more than about $100,000 in income. There's also audits due to "no reported income" and people who have assets well beyond what they're reporting in income, and on people who used to file taxes but they haven't heard from them in years.

Most of the really nasty audits are on people who make well over $100,000 a year, and usually millionaires on up.

They count as "audits" things as simple as forgetting a tax form on your return and the IRS correcting it for you and sending you a CP2000 letter and saying "We corrected it. Here's what you owe us." People of wage earner level income who get audited, it's usually a CP2000.

Now, where you can run into potential major civil penalties are failure to file, failure to pay, etc. which are civil penalties and interest that can really jack up your tax bill, so you need to file and you need to do it honestly and if you know what's good for you, you'll file by the deadline even if you need to set up a payment program. And stick to the program.

Where it gets criminal, potentially, is if you get a letter or visit from the CID, which means you did something really bad. If you give them a major understatement of your income (which they call substantial under-reporting, which is 25% or more of the income that should have been on the return), but usually they want the money more than they want you in jail. So they'll whack you with another huge penalty and interest.

Prison is for people who deliberately cheat on their taxes, it was egregious, they clearly meant to do it, and honestly if it starts out with civil penalties and you still don't pay, then it could become a criminal matter.

Most people who work for a living are in almost no danger if they wait for all their tax forms, enter them correctly, and only take deductions and credits they are honestly entitled to. If you have questions, the IRS.gov website has information about almost every deduction and credit.

TurboTax sells "audit defense", but most people will never be audited. The "audit defense" doesn't pay your tax bill if you get audited. And all it does is have someone talk about your tax return to the IRS. So if you get a CP2000 letter, those are easy, If you put the income somewhere on the return, choose the option to contest it and speak to an IRS agent and they'll tell you where to go from there. If you messed up, sign and pay if you owe that money.

The IRS will reach out to you through the mail. They never call you, even though the tax return software might ask you to give them your phone number. They never threaten you. They don't have foreign accents. They don't demand Starbucks gift cards and say the police are on their way to send you to prison, send you there for fifty years.

You don't have to ride a magic carpet and beg and plead with the king of the potato people to spare you. (I got that one from Red Dwarf: Quarantine)
 
That actually came up in an episode of Rugrats where Angelica reminded her Dad that she was "Daddy's little tax shelter!".

There were so many things you have to rewatch that show as an adult to laugh at.

I've long wanted to rewatch those shows from my childhood and see what dark humor and innuendos I missed. I just finished a series so it may be time I do that.
 
Glad that Illinois is a match for you- at the end of the day, that is all that matters.

You appear to be the exception, as Illinois has had 14 continuous years of population decline, while every state bordering Illinois has had population growth.
Population growth doesn't imply economic prosperity. Children are an economic issue. And I'll give you a lesson in math, specifically exponential growth.

Here's an example of why the "surrounding States" grew.

My mom's second husband, in Indiana, was a truck driver.

His daughter had five children and put the whole family on welfare. She got married to several men in a row but the "nicest" one was a guy who got out of prison and had extremist prison gang tattoos on his face.

He was driving his car down Etna Avenue, in Huntington, in 2009, and lit a cigarette, and it caught the meth precursors on fire and his car blew up, and he crashed into a phone pole down the street from my house, knocking out my Internet. The police sent him back to prison.

It's generally the people who have no access to reproductive healthcare generally, don't have the presence of mind to use some if it is available, and don't have much money, that tend to have more. Because there's really no other way it makes sense.

So I've seen this play out a lot because I lived in Indiana until I was 35, and so there's one reason the State's population grows. They're not paying for it and they have no access to proper reproductive healthcare. Even if they had no access to welfare programs and did have a proper medical system in Indiana, I feel that many of them wouldn't change their behavior at all because they simply do not operate on that level. It takes more presence of mind to connect cause and effect over a 9 month timeline.

Another issue, where people in cities don't have many kids, is that they are better educated in general and have more access to a functioning healthcare system. Cities are the engine of a modern economy. They are what makes the rest of the country "work". The rest of the country is good mainly for farmland, manufacturing, and power plants. Which are essential to a modern post-industrial economy, but not the primary source of the Gross Domestic Product. You could not have much of a Welfare State with the GDP of an agrarian, petroleum, and manufacturing-based economy. (See; Russia, North Korea, etc.) (Even Saudi Arabia, which has a lot of oil, had to make deep and unpopular cutbacks in the recent years.)

It used to be that on the farm, more children were an asset, because it meant they'd workers on the farm. But then people moved to cities, where they're an expensive hobby. So you live in a city, you have less of them because they aren't working and each one will cost you $310,605 on average according to the Brookings Institute. Even in rural areas, children are not as necessary as they once were due to heavy machinery, and increasingly the software and services that run it. (Think drone tractors and stuff.)

That $310,605 figure assumes one child up to age 17. Many people end up helping them with college. Not all.

So then what you get a lot of the time these days is they can't find work, or suitable work, or anything that involves what they studied, and they end up living with you a lot longer.

By the time mom's second husband died, 9 years after they got divorced, it was because he spent years and years polluting his body drinking refrigerators of beer and smoking three packs a day, and salting the salted peanuts (and all his food because all he could taste was salt). Budweiser and whoever owns Kool cigarettes probably had a flash crash on the New York Stock Exchange that day.

He had a heart attack at 59, and thus endeth the caveman*, but by that point he'd had 4 children, 16 grandchildren, and 8 great-grandchildren. *(She described taking him to a fine restaurant once, and he banged the silverware and growled 'I ont some meat!'.)

I forgot to mention this family starts having them when they're really way too young. But while teenage pregnancy is an economic problem, and a negative social indicator, it's a whole different topic.

So there's exponential growth.

And then for this economic investment, pretty much all of them are doing life on the installment plan in Indiana prisons, which are probably the best place you'll find a job at in Indiana. And you'll already be related to some of the inmates probably.

The ones that aren't in jail also make sure they file their taxes every year, because they'll get back several thousand dollars from the earned income tax credit along with everything they paid. So they file taxes and they get their refund and what could have been refunds for several productive citizens.

The problem happens where so many do when it involves people. Some associate quantity with quality.

And some will ask "How can you assign a dollar value to a human life?"

Well, I'm not trying to be a Philosophy major here, and so we'll leave that aspect to them.

Economists put value on human life every day, when they set fines for OSHA, or when they write up Accidental Death and Dismemberment insurance policies. Or when there's a wrongful death lawsuit.

If you ask me, there is no "value" I can place on a single life. I refuse to make that assessment. One person is important to me. However, when we discuss taxes or the cost of raising a child, I can give you some idea, because economists have done the work.

My cousin just had a child at 43 even though the doctors said it would never happen. Economically, she was teetering on a fourth bankruptcy filing already, so economically this is a disaster, but oddly she's happy and I'm happy for her. It's nice when we can be happy in this world.

To me, there's sort of a cold logic in the way that I approach my thinking, so if it were possible for me to be in that position, I would be unhappy because logically this is a major problem. There are five people in that house and she's the only one who has a job. She married a layabout, and he moved the mother in law in and now there's a baby, and they had already adopted a "difficult" child.

My feeling is that there's too many people around advocating for having more children without feeding or clothing or finding a loving home for the ones that are here. It's like some sort of weird puppy mill thing for humans.

I look at things like this from the economic angle I guess, because I never got love from my parents. My dad was always just saying how much money I was costing him.

I'd hate to fail a child like he did. Never encouraging, never saying "You did good." after an achievement. Just off to make another one. I do not understand this and I'm honestly glad I don't.

That's one reason I focus on enrichment of my own life, and the work, because the work is around long after anyone remembers who did it.
 
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What are these taxes everyone is talking about?

But seriously, I do mine and it varies year to year.

This year is new due to oilBabe's retirement. I'll probably get it figured next week if I don't need to engage professional help.

However, this might be one year where living in IL works out as her pension funds are not subject to state income tax :)
 
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Population growth doesn't imply economic prosperity. Children are an economic issue. And I'll give you a lesson in math, specifically exponential growth.

Here's an example of why the "surrounding States" grew.

My mom's second husband, in Indiana, was a truck driver.

His daughter had five children and put the whole family on welfare. She got married to several men in a row but the "nicest" one was a guy who got out of prison and had extremist prison gang tattoos on his face.

He was driving his car down Etna Avenue, in Huntington, in 2009, and lit a cigarette, and it caught the meth precursors on fire and his car blew up, and he crashed into a phone pole down the street from my house, knocking out my Internet. The police sent him back to prison.

It's generally the people who have no access to reproductive healthcare generally, don't have the presence of mind to use some if it is available, and don't have much money, that tend to have more. Because there's really no other way it makes sense.

So I've seen this play out a lot because I lived in Indiana until I was 35, and so there's one reason the State's population grows. They're not paying for it and they have no access to proper reproductive healthcare. Even if they had no access to welfare programs and did have a proper medical system in Indiana, I feel that many of them wouldn't change their behavior at all because they simply do not operate on that level. It takes more presence of mind to connect cause and effect over a 9 month timeline.

Another issue, where people in cities don't have many kids, is that they are better educated in general and have more access to a functioning healthcare system. Cities are the engine of a modern economy. They are what makes the rest of the country "work". The rest of the country is good mainly for farmland, manufacturing, and power plants. Which are essential to a modern post-industrial economy, but not the primary source of the Gross Domestic Product. You could not have much of a Welfare State with the GDP of an agrarian, petroleum, and manufacturing-based economy. (See; Russia, North Korea, etc.) (Even Saudi Arabia, which has a lot of oil, had to make deep and unpopular cutbacks in the recent years.)

It used to be that on the farm, more children were an asset, because it meant they'd workers on the farm. But then people moved to cities, where they're an expensive hobby. So you live in a city, you have less of them because they aren't working and each one will cost you $310,605 on average according to the Brookings Institute. Even in rural areas, children are not as necessary as they once were due to heavy machinery, and increasingly the software and services that run it. (Think drone tractors and stuff.)

That $310,605 figure assumes one child up to age 17. Many people end up helping them with college. Not all.

So then what you get a lot of the time these days is they can't find work, or suitable work, or anything that involves what they studied, and they end up living with you a lot longer.

By the time mom's second husband died, 9 years after they got divorced, it was because he spent years and years polluting his body drinking refrigerators of beer and smoking three packs a day, and salting the salted peanuts (and all his food because all he could taste was salt). Budweiser and whoever owns Kool cigarettes probably had a flash crash on the New York Stock Exchange that day.

He had a heart attack at 59, and thus endeth the caveman*, but by that point he'd had 4 children, 16 grandchildren, and 8 great-grandchildren. *(She described taking him to a fine restaurant once, and he banged the silverware and growled 'I ont some meat!'.)

I forgot to mention this family starts having them when they're really way too young. But while teenage pregnancy is an economic problem, and a negative social indicator, it's a whole different topic.

So there's exponential growth.

And then for this economic investment, pretty much all of them are doing life on the installment plan in Indiana prisons, which are probably the best place you'll find a job at in Indiana. And you'll already be related to some of the inmates probably.

The ones that aren't in jail also make sure they file their taxes every year, because they'll get back several thousand dollars from the earned income tax credit along with everything they paid. So they file taxes and they get their refund and what could have been refunds for several productive citizens.

The problem happens where so many do when it involves people. Some associate quantity with quality.

And some will ask "How can you assign a dollar value to a human life?"

Well, I'm not trying to be a Philosophy major here, and so we'll leave that aspect to them.

Economists put value on human life every day, when they set fines for OSHA, or when they write up Accidental Death and Dismemberment insurance policies. Or when there's a wrongful death lawsuit.

If you ask me, there is no "value" I can place on a single life. I refuse to make that assessment. One person is important to me. However, when we discuss taxes or the cost of raising a child, I can give you some idea, because economists have done the work.

My cousin just had a child at 43 even though the doctors said it would never happen. Economically, she was teetering on a fourth bankruptcy filing already, so economically this is a disaster, but oddly she's happy and I'm happy for her. It's nice when we can be happy in this world.

To me, there's sort of a cold logic in the way that I approach my thinking, so if it were possible for me to be in that position, I would be unhappy because logically this is a major problem. There are five people in that house and she's the only one who has a job. She married a layabout, and he moved the mother in law in and now there's a baby, and they had already adopted a "difficult" child.

My feeling is that there's too many people around advocating for having more children without feeding or clothing or finding a loving home for the ones that are here. It's like some sort of weird puppy mill thing for humans.

I look at things like this from the economic angle I guess, because I never got love from my parents. My dad was always just saying how much money I was costing him.

I'd hate to fail a child like he did. Never encouraging, never saying "You did good." after an achievement. Just off to make another one. I do not understand this and I'm honestly glad I don't.

That's one reason I focus on enrichment of my own life, and the work, because the work is around long after anyone remembers who did it.
What does this story/you other long posts in this thread have to do with standard vs. itemized deductions on federal income taxes?
 
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What does this story/you other long posts in this thread have to do with standard vs. itemized deductions on federal income taxes?
Ahh, right. Taxes are a sore subject for me.

I guess I'd just rather that everyone got a bill and paid it instead of it being this 10,000+ page mess stuffed full of exceptions for everything.

The State ones tend to work more like that.
 
My issue is waiting 5 months for a federal tax refund. The state sent my refund in one week... it's been approved but not sent out as I called today...Anybody else?
 
My issue is waiting 5 months for a federal tax refund. The state sent my refund in one week... it's been approved but not sent out as I called today...Anybody else?
I paid in to the Fed this year but got a state refund. Fed debited my account a day or so after filing and the state refund came a couple days after that. In years past when I got a refund from the feds it was within a week or two, nowhere near months...
 
I have my taxes for federal and state set so I do not get much of a refund...like 100.00 or less....It is my money and I would rather get it during the year...
 
I have taken the standard deduction for years. I paid my house off in 2013, so I don't have enough itemized deductions that exceed the standard deduction.
 
I almost itemized this year, I missed it by a few hundred dollars. The $10K cap on SALT really hurts.

Looks like I owe almost $15K to the feds .... I'm not anxious to pay it.
 
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