Wednesday, April 15, 2009

Speaking of Taxes

Some of my neighbors are up in arms on the neighborhood email list about the recent reassessment. They seem not to understand the idea of a reassessment and the difference between a reassessment and a tax increase. (My county tries for a "market-value" assessment.) One woman is really, really, really upset that her house was reassessed and had a large percentage increase. The old assessment was $76,600 and the new assessment is $125,000. She bought the house for $120,000 in 2008. She's really upset that no one else in the neighborhood had such a large percentage increase.

To calculate your county taxes around here, you take the fair-market value of your house and multiply by $0.006725. This includes the school taxes.

Oh, and despite having my W-4 filled out as having NO exemptions and NO dependents and NOTHING that would say "withhold less" (and I think taking some extra withholding out every month), I still ended up owing the IRS $2200. (This is pretty typical. I've never gotten a refund.) My property taxes were the only thing that saved me money on my federal taxes (well, I also got about $20 off because I had to pay $100 for the class I took in the fall). The only good thing about the standard deduction is that I'll never have to pay the Alternative Minimum Tax. Only good thing. I need to get social security numbers for my computer and my plants.