Both Tom and I got our TAX sticker shock this year. Being newly married, we are now elevated ourselves to a higher tax bracket, a negative side effect we knew and estimated last year. But nevertheless, it still exceeded our expectation; I mean the additional amount we have to pay out.
We lost my HI rental property deduction because our combined income bumped us out of the bracket for the annual tax write off I was able to take in prior years. Now we have to wait until we sell the property.
The losses we experience in the stock market can only be written off very very slowly while any gains such as compensation bonus is taxed immediately.
Of course, there is this wonderful concept of marriage penalty. Only the US would impose this idea. In other countries, tax laws are written to encourage people to stay married, not single. No wonder our divorce rate is so much higher than other countries.
With our combined income, we are now qualified for the little term “AMT”, alternative minimum tax. How wonderful is that? I have never reached that threshold in the past with my mortgage and rental property tax strategy. And so was Tom. Now, it is the wrong strategy.
On top of this, we are not qualified for any kind of economic stimulus / incentive President Obama put out so far. Yes and Yes on tax hike. No and No on any benefit.
A Californian asked President Obama during his recent visit to California about this middle income range his economic team posted. Any family with over $250K in income is outside the definition of middle class. This amount may be a lot in most part of this country, but certainly doesn’t buy much here in California. He didn’t have much of an answer for the person.
I wonder when did Tom and I won the lottery and became upper class??? Tom works 11+ hrs/day. I maintained my 40+ hours/week if I don’t travel. What about those 11 pm weekly conference call I hold with Australia? If I travel, then who counts how many hours that is. And I travel 30% of the year. My point is money doesn't grow on trees in my home. It certainly taxes like running water down the drain!
And think about it, if you are a professional holding a full time job (with a collage degree) and more than 15 years of experience in the work force, you will make more than $100k a year. So as long as both husband and wife work, we are no longer middle class??? Let me see what is wrong with this concept? I think I need a new strategy: have a baby and sit at home all day, so our household income can fall below the middle class limit and we can qualify for assistance from the government??? Oh better yet, become a single mom with octuplets, fame, fortune, and qualify for all kinds of stimulus package…
OK, OK, OK, enough of the negativity, think positive…..breath….. think positive…..breath….repeat this a few more times….
- Both of us have full time jobs.
- We have more than one roof over our heads even though we apparently cannot afford to live together under one roof.
- We are healthy (stretching on that definition a bit lately).
- We have our friends and family.
Nevertheless, I feel very poor at the moment.
No comments:
Post a Comment