Return to the Household Finances Forum | Post a Follow-Up

 o
Income tax return done: income up, gifts up, tax not

Posted by joyfulguy (My Page) on
Thu, May 4, 06 at 23:22

In addition to doing income tax preparation for low-income people for several years, organized by the income tax dept., I've been preparing returns for a couple of friends for several years and last year the lady began a new business, house rental.

She has somewhat limited accounting skills and told me this year that the paper that I gave her last year detailing how to arrange the payments was too small, to which I said that I had meant it as a guide as she set up her account book.

I brought their returns home, as I expected to visit the tax office, so could deliver their return without postage, telling them that I'd bill them later for postage if I had to mail them. I photocopied his charitable receipts, that we must file, in case of later dispute, supposing the originals might have disappeared.

I had quite a bit of photocopying of stockbroker reports plus about 30 charitable and political receipts of my own, so many that I feared that I couldn't get them all into the envelope - but made it.

I'd have had to pay about $2.00 postage, but was able to deliver it to the tax office.

Despite an unusual, temporary increase of 18% in taxable income over 2 years, I've been managing to reduce my tax load to around 10% in recent years: about 10.4% in 2002, 10.13% in 2003, 9.3% in 2004 and 8.7% in 2005.

Charitable contributions (mine are for health, social and community, educational and religious projects) above a minimum amount are deductible at a generous rate and our church carried out a building project mainly to make it more accessible this year, to which I contributed more than usual for two years - total up nearly double that of 2 years ago.

The interesting thing: my tax load for the past 3 years has varied within only a $25.00 amount - which was entirely unforeseen: I only realized it 10 min. ago.

You've heard my refrain: "Learning how money works - an interesting hobby ... that pays well".

Learning how tax works - also an interesting situation ... that can pay well, as well.

I hope that you're all enjoying an interesting spring.

ole (frugal) joyful


Follow-Up Postings:

 o
RE: Income tax return done: income up, gifts up, tax not

" She has somewhat limited accounting skills and told me this year that the paper that I gave her last year detailing how to arrange the payments was too small, to which I said that I had meant it as a guide as she set up her account book. "

I'm afraid I LOL at this one! Not that I haven't misunderstood some equally commonsense things at times. Of course common sense often depends heavily on knowledge, so if the knowledge isn't there, neither is the sense.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Household Finances Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here