The DMV is so insidious. They are allowed to tax used property sales.

So if you underpay the tax, can you claim last year's payment as a
deduction to this year's income?

 

I deliberately left income tax out of the equation to keep the cost
purely related to the car itself.

 

I am all for Oregon. Oregon is a great state, it sounds like.
It deserves to have the job creation. That is how it is supposed to
work. Make things easier for the businesses to survive and do it
transactions and get rewarded. Cudos for OR!

sincerely. Signed: Libertarian at heart--though he lives in a
democrat world.

 

dunno. I've never underpaid. Been getting a state and federal refund every
year for 31 years now.

 

"The Lindbergh Baby"


| Now if you only knew how the REST of the government screws you even
| worse! ;-) ;-)

Just be thankful we're not getting all the government we're paying for <g>

 

Steve,
Unfortunately that is not the case, last year's state refund seems
like it is taxed by your state as state tax can be deducted from
your federal taxes, but not your state taxes. To get around this,
states the refund back into your income (or subtract any payment
from it). It is just a year behind.

chuck

 

typo in my follow up. I meant to say "states add the refund
back into your income." in the next to the last line. duh!

 

And as I stated in my email, you are wrong. It doesn't "SEEM" anything. We
have to claim last years refund as this years income on the state return.
Just as stated before. There also is no deduction from the federal return
for the state tax.

sorry.

 

The main argument is that government could be much smaller than it
actually is. But you'll never see the end of the political hacks so
government will never get smaller.

Same is also true for law enforcement - we have more of it now than ever
thanks to the war on drugs. But it's a war we can never win, hell, every
cop I've met knows this.

But they can't dismantle the infrastructure already there easily because
of unions.

It's one unending cycle.

 

Steve,
If that were the case, then you can have your employer withhold
less of your earnings which goes towards your state income tax.
That way you would not get a much of a refund or perhaps you
will have to pay some when you file your state taxes as maybe
not enough was withheld. But, you would not be taxed twice.
Right?

It does not make sense that you can effectively adjust your
taxes by adjusting your withholdings.

In Virginia, we take the federal gross income and carry it to
the state form. Then we then take last years state refund,
social security and some other incomes and SUBTRACT them
all from the federal gross income giving the Virginia adjusted
income.

I am not trying to argue, I think that you seeing that
last years state refund is used in the state adjusted in-
come calculation. The question is what is going on in
Kansas' calculation?

Here in Virginia we had a court case that went as follows if
I recall. State employees paid into a retirement fund using
money that was not tax deductible. Then when the funds were
drawn on after retirement, the entire payment was taxed.
That is double taxation and the state lost the court case.
They have been dragging their feet in paying as it was over
many years and was big $$. Don't recall if the retirees ever
got their money.

chuck

PS: Please take a look at federal schedule A, line 5. State taxes
and local income taxes are a federal deduction when you itemize..
I have the forms in front of me.

 

Poor planning, eh?


Matt

 

Nothing going on. Just adding the refund from last year to the income.

We don't itemize. Please see line 10 on form 1040.

I did however dig back into this and found you are partially correct. And
_I_ had it backwards. We have to ADD the state refund into the adjusted
gross on the Federal, (line 10 form 1040) AND we deduct it from the adjusted
gross on the state form (K-40 line 2)

 

If you itemize deductions on your 1040, then you can claim state taxes
as a deduction.

Matt

 

I'm afraid you're confused here, Ted. If you buy a ready-to-eat hamburger in
Washington, you are required to pay Washington's sales tax (in this case, it's
actually the meals tax), whether your domicile is Oregon, Ontario, or China.

However, if you buy something in Wasington for *delivery* elsewhere, than
Washington does not charge you the tax. Since that hamburger isn't delivered
out of the state, you ow them the tax on it.

A washing machine delivered to Oregon or a car registered in Oregon are examples
of goods bought for delivery elsewhere. Because of the registration factor,
cars are one of the few items you can deliver to the state yourself instead of
having it shipped.

True. Except the tax due to Washington isn't "sales" tax, as the sale didn't
take place in Washington. Nor can Washington tax the goods imported from
another state because of the Constitution's interstate commerce clause (except
alcohol due to the 21st amendment). What Washington CAN due is require you to
pay "use" tax on the goods. I believe every state with a sales tax also has an
equivalent "use" tax. In practice, it's nearly impossible for them to do this
because it is so hard to enforce. However, states are starting to require
taxpayers to declare use tax on their state income forms, so if you lie about it
you are committing perjury, which would be another offense if they find a way to
catch use tax evasion in the future. (States are getting aggressive with taxing
mail order cigarette sales too).

 

DMVs don't make laws or tax policy, they just enforce them. The tax goes
to the state treasury. Can't blame the DMV for this one, your legislature
makes the decisions.

 

Many states exempt occasional yard sales from sales tax requirements. They're
not just making a nice gesture, it would also be time/cost consuming for them
to enforce this for very little tax revenue.

 

The only "income" from selling a car would have to be figured by subtracting
the amount you originally paid for the car (the tax basis). Since it's
unusual these days to sell a car for more than you pay for it, it's not
common to get income from selling a car. However, I don't know any states
that permit you to take a loss for a (non collectible) car either.

 

Sorry you are an idiot. I sure hope you pay someone to do your taxes,
maybe a five year old.

 

Further, if you don't itemize, you get the standard deduction, which
is far higher than most people are actually entitled to.