Quote:
Originally Posted by SoopahMan
In doing my taxes with Taxcut.com I noticed that without my investments (not totalling anywhere near $750,000) the tax credit was very small, but once I put in my investments it came up to the full amount of $3500. I don't know what crazy logic is behind it but, it was interesting to notice. As a guess, generally speaking the rich have a lot of investment income and the poor have only working income, so like many other tax breaks passed in the past 6 years perhaps that was its goal.
A little-known trick is that you can make contributions to many types of investments this year as though you made them last year, for tax purposes. You're missing out on the interest/appreciation you would have made, but depending on how the numbers work out, you may dodge a lot of taxes via the loophole. Give it a shot - I did my best to not pay a dime for this war, may as well do yourself a favor and keep your money out of it too.
|
I'm curious soopahman, was a lot of this investment income interest from money markets, bonds, and dividends as oppossed to capital gains?
My guess if you have lots of interest income you are being taxed on this at either a 28% or 33% rate, and if so your being taxed at a higher rate for this than the AMT and that could explain why you now get the full deduction.
I understand your wish not to pay for the war, but it simply doesn't work that way. You're just keeping more of your own money, nothing wrong with that, but the war doesn't know that.
I could justify my desire to avoidance paying taxes as not wanting to pay for farm subsidize, or welfare, or aids research, or Bush's salary, but we don't get to target our tax payment.