2018 Income Tax Return Rant

[maxwelhse]

I think it depends on where you are in Indiana. We are paying about the same $$ amount for a larger house and much more land in rural Morgan County as we were for a small subdivision home and 0.11 acre lot (yup, it was small) in Marion County. And the roads are much better here.

That's a fair enough point. If my house were 2 mile south I would have been in Fort Wayne and had double the taxes. All the same, another grand to have to pay FWPD to crack skulls on the south side of town to keep it from expanding even more would have still been a bargain. I don't want that in my back yard... that's why I didn't buy in Fort Wayne to begin with.

However, unsustainable in the long run also comes to mind. The stupidity of the opulent park of single A baseball and the other foolishness Henry has been doing for the last 10 years really burns my rear. Glad I don't pay Allen Co a cent anymore.

Back to the point, IN taxes still aren't that bad and the vast majority of us are going to benefit much more from the increased standard deduction than we are from the new limits on itemizing. Chumps in blue states are getting burned.

 

[MarkC]

That's a fair enough point. If my house were 2 mile south I would have been in Fort Wayne and had double the taxes. All the same, another grand to have to pay FWPD to crack skulls on the south side of town to keep it from expanding even more would have still been a bargain. I don't want that in my back yard... that's why I didn't buy in Fort Wayne to begin with.

However, unsustainable in the long run also comes to mind. The stupidity of the opulent park of single A baseball and the other foolishness Henry has been doing for the last 10 years really burns my rear. Glad I don't pay Allen Co a cent anymore.

Back to the point, IN taxes still aren't that bad and the vast majority of us are going to benefit much more from the increased standard deduction than we are from the new limits on itemizing. Chumps in blue states are getting burned.

You bring up a lot of good points. Just as you didn't want or need the "amenities" that were included with City of Fort Wayne taxes, my wife and I are more than willing to forgo the "benefits" that come with living in Indianapolis/Marion County.

Much of the same fiscal foolishness seems to be occurring, except in Indianapolis the dollar amounts are much higher, and they need "help" from the state. For example, the increases in funding for sports teams that are in SB 7 in the General Assembly. I'm glad to be away from that.

I feel we are getting much more for our property tax dollar in a rural county, away from Indianapolis.

 

[maxwelhse]

I feel we are getting much more for our property tax dollar in a rural county, away from Indianapolis.

Oh, no debate about that at all. My parents bought a nice rural property to retire on, which included a stupidly large nearly "McMansion" size house (like 5500ft^2 plus an outbuilding that about 40x80), out in the sticks in Noble County and their property taxes for 10 acres and a giant house are less than their 1/2 acre 1700ft^2 in Fort Wayne proper was.

All the same, I still can't really complain. I've never lived in Indy or a particularly bad part of any town, but I feel what I've paid in local taxes are fair for the quality of life I get back from them. My Elkhart county taxes are surprisingly higher than my Allen county taxes, but there's a giant, nearly brand new, firehouse virtually in my back yard and the sheriff is quick to respond (had to call in a wellness check for a neighbor awhile back... long story, but they were here in like 5 minutes on a non-emergency call) and the deputies are cool. There's a nice, also nearly new, elementary school within eyesight too. Also surprisingly, the county roads are MUCH better cared for than the city roads in the greater area. So...

Anyhow. I'm not complaining. Now, the Feds can put it where the sun doesn't shine. I'd have to live to be 300 and stop paying taxes right now before my IRS dues would ever come back in services.

 

[Brad69]

I pay quarterly taxes and settle up at the end of the year. The concept of a refund is alien to me, why would you wanna give the government a interest free loan?
I do have a cousin that lives on HUD, SNAP, Child Support ect. She will get a small job work for a week or so to get a W-2 in order to file a tax return and get the EIC and such often racking in like $10,000. She then buys stuff like big screen tv’s and jewelry, after a few weeks she sells the stuff on the book of faces at a major loss.

I would like to take the time to say what a great and compassionate organization the Internal Revenue Service has always been. I hope all is well with them and the sun shines on there souls.

 

[maxwelhse]

. She then buys stuff like big screen tv’s and jewelry, after a few weeks she sells the stuff on the book of faces at a major loss.

Does she take orders? I'm in the market for a new TV at 1/2 price...

 

[CPT Nervous]

I pay quarterly taxes and settle up at the end of the year. The concept of a refund is alien to me, why would you wanna give the government a interest free loan?
I do have a cousin that lives on HUD, SNAP, Child Support ect. She will get a small job work for a week or so to get a W-2 in order to file a tax return and get the EIC and such often racking in like $10,000. She then buys stuff like big screen tv’s and jewelry, after a few weeks she sells the stuff on the book of faces at a major loss.

I would like to take the time to say what a great and compassionate organization the Internal Revenue Service has always been. I hope all is well with them and the sun shines on there souls.

Some people work really hard to avoid work.

 

[Vigilant]

I pay quarterly taxes and settle up at the end of the year. The concept of a refund is alien to me, why would you wanna give the government a interest free loan?
I do have a cousin that lives on HUD, SNAP, Child Support ect. She will get a small job work for a week or so to get a W-2 in order to file a tax return and get the EIC and such often racking in like $10,000. She then buys stuff like big screen tv’s and jewelry, after a few weeks she sells the stuff on the book of faces at a major loss.

I would like to take the time to say what a great and compassionate organization the Internal Revenue Service has always been. I hope all is well with them and the sun shines on there souls.

I mean, technically, she isn’t selling at a loss since she wasn’t using her money to buy the stuff?

 

[Ingomike]

You guys sure packed a lot in this can on a Sunday morning... LOL

Property taxes are are capped by our State Constitution, ( Thank You Governor Daniels.)

Property owners are entitled to a cap on the amount of property taxes over 1 percent of the gross assessed value for homestead properties, 2 percent for other residential and agricultural land and 3 percent for other real and personal property.

There may be few counties not taxing at a level to kick in the above cap circuit breaker but it would be rare. Your taxes should not be significantly different from area to area. What are the variables. Did you realize if you own 10 acres only 1 acre is covered by the homestead exemption? The other 9 could be taxed at either 2 or 3%, depending on how the assessor defines it. A guy bought a 12 acre horse property and it had homestead on 1 acre and ag on the rest, the assessor changed the 11 acres to the 3% because "no ag was going on" when they stopped by, which happened to be just after seller moved out, and before buyer moved in. That change was $4000. And when proven ag was going on they changed it back, for the next year but not the year due. If you have acreage better check your tax record.

If you have multiple properties you only get one homestead exemption.

Another big variable is assessment valuation, taxes in Carmel are lower than many places but property values are higher, what is your place really worth?

Did your area vote in a special school tax by referendum?

If you own a home your property tax should be 1%.

MM

 

[Ingomike]

Many of you have done a great job on posts about income tax.

Eliminate witholding, everyone writes a check...

Flat tax for everyone, no deductions.

No corporate income taxes at all.

Eliminate the practice of Federal taxation, only to send it back to state and local with strings.

MM

 

[DoggyDaddy]

You guys sure packed a lot in this can on a Sunday morning... LOL

Property taxes are are capped by our State Constitution, ( Thank You Governor Daniels.)

Property owners are entitled to a cap on the amount of property taxes over 1 percent of the gross assessed value for homestead properties, 2 percent for other residential and agricultural land and 3 percent for other real and personal property.

There may be few counties not taxing at a level to kick in the above cap circuit breaker but it would be rare. Your taxes should not be significantly different from area to area. What are the variables. Did you realize if you own 10 acres only 1 acre is covered by the homestead exemption? The other 9 could be taxed at either 2 or 3%, depending on how the assessor defines it. A guy bought a 12 acre horse property and it had homestead on 1 acre and ag on the rest, the assessor changed the 11 acres to the 3% because "no ag was going on" when they stopped by, which happened to be just after seller moved out, and before buyer moved in. That change was $4000. And when proven ag was going on they changed it back, for the next year but not the year due. If you have acreage better check your tax record.

If you have multiple properties you only get one homestead exemption.

Another big variable is assessment valuation, taxes in Carmel are lower than many places but property values are higher, what is your place really worth?

Did your area vote in a special school tax by referendum?

If you own a home your property tax should be 1%.

MM

It didn't take very long for them to get around that 1% cap. They just raised everyone's assessed value. Voila', more money, while technically still observing the 1% cap.

 

[indyartisan]

They are 5 for 6 approving school referendums here in Noblesville. The last one was approved on top of an ongoing one.
Seems its getting just a little out of hand.

 

[cce1302]

That's American mentality right now: a big refund is something they are entitled to, but they don't even grasp the fact that taxation is theft to begin with.

 

[Ingomike]

It didn't take very long for them to get around that 1% cap. They just raised everyone's assessed value. Voila', more money, while technically still observing the 1% cap.

I have not seen any evidence of this. Not saying it does not happen at all but have not seen in central Indiana. As we suffered the market downturn in 08-12 the assessed values seemed to go down with the market, and as the market rose so did the values.

If if one believes that this occurs they should get an appraisal and fight it, not complain.

MM

 

[edporch]

It is a tax REFUND. You overpaid your taxes, here's what we owe you back. People just can't seem to grasp that. I would rather keep more of my paycheck each week than overpay and get it back in a lump sum.

Exactly.
I always laugh when i see somebody complaining they didn't get a big tax refund.
WHY would somebody want to give the government free use of their money?

Personally, I like it when I just owe a small amount at tax time.
Then I know I had full use of my money for the year.

 

[DoggyDaddy]

I have not seen any evidence of this. Not saying it does not happen at all but have not seen in central Indiana. As we suffered the market downturn in 08-12 the assessed values seemed to go down with the market, and as the market rose so did the values.

If if one believes that this occurs they should get an appraisal and fight it, not complain.

MM

There was quite a stink about it when it started happening, at least here in Marion County at the time. The market was still soft, and a lot of people were challenging their assessments, and many were successful. I was kind of suspicious when the cap was initiated, thinking that there wasn't much to stop them from jacking around with the assessment values (which of course are different from an appraisal by a realtor). That's what people were complaining about - their properties were appraising for less, while being assessed for more - sometimes in excess of the appraisal.

 

[churchmouse]

That's American mentality right now: a big refund is something they are entitled to, but they don't even grasp the fact that taxation is theft to begin with.

Brainwashed by design.

 

[JettaKnight]

I've been saying for years that we should all have to pay our taxes at the end of the month like the rest of our bills. Things would change really fast in this country if everyone was writing a literal check for twice their mortgage/rent every month.

Who writes checks anymore?

For most, if the taxes weren't withheld, they'd be automatically withdrawn from their bank account like everything else.

 

[JettaKnight]

then there are those, that pay in verrryy little, and because they welped a few extra puppies, get credit for bad decisions in the form of $5-10000 “refunds”.

"welping little puppies"?

Wow.

They're parents may have made bad decisions, but to call the children "puppies"...

I have always thought that EIC was funny. Earned Income Credit as if it was actually earned.

Well, in a way it is earned. It is based on income, i.e. the more you make, the more EIC you get (to a point).

We may not like it, but the overwhelming number of economist do.

 

[JettaKnight]

The standard deduction increased so massively that now you simply don't need to itemize. What this tax reform bill did, almost is if intended to do so () is just to stick right in the back sides of the blue states. Not being able to itemize my mortgage interest* in Indiana isn't a huge deal (since the standard deduction went up so much anyhow), but it absolutely bones people in NY, CA, MA, etc, etc... They're all really unhappy.

That makes me VERY happy.

So... Don't get too twisted up over not being able to itemize small expenses. The standard deduction should still cover most blue collar folks just fine.

edit: Oops.. Not mortgage interest, PROPERTY TAXES. Fingers faster than brain.

FYI - you certainly don't speak for all Hoosiers in this respect.

AND... the personal extemption went away, so, if you were a married couple that itemized around $24K of deductions, your taxable income increased by $8K.

 

[JettaKnight]

I pay quarterly taxes and settle up at the end of the year. The concept of a refund is alien to me, why would you wanna give the government a interest free loan?
I do have a cousin that lives on HUD, SNAP, Child Support ect. She will get a small job work for a week or so to get a W-2 in order to file a tax return and get the EIC and such often racking in like $10,000. She then buys stuff like big screen tv’s and jewelry, after a few weeks she sells the stuff on the book of faces at a major loss.

I would like to take the time to say what a great and compassionate organization the Internal Revenue Service has always been. I hope all is well with them and the sun shines on there souls.

A fool and [her] money are soon parted.