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Thread: Bank account vs. shoebox

  1. #26
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    Default Re: Bank account vs. shoebox

    I wish it was still like that. Thanks for sharing your story!

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    Banned Eric Stoner's Avatar
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    Default Re: Bank account vs. shoebox

    Quote Originally Posted by Melonie View Post
    ^^^ who am I to judge ... as I'm sitting down here way south of the border with the first $106,000 of my income being legally exempt from US taxes !!!

    When I first started dancing, the filing of tax returns by dancers was essentially unheard of. When I first started dancing, you could walk into a car dealership with a fistful of cash and drive away in a brand new car with no questions about where the cash came from - and with no filings of IRS reports or IRS cross-checking. Similarly, when I first started dancing, tuition payments weren't reported to the IRS and no questions were asked in regard to where the tuition money came from. But that was then and this is now.
    Ah yes. The good old days. It was fun while it lasted. Sigh.

  3. #28
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    Default Re: Bank account vs. shoebox

    I was checking out CDs at my bank and they actually have a smaller percentage rate than a regular savings account!!

    So I can give you $20,000 and not have access to it for a year and earn less interest than putting $20,000 in a savings account that I can actually access?? The interest rate on the savings account I believe was .05 ? not sure.

  4. #29
    Veteran Member Joanna_Kaary's Avatar
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    Default Re: Bank account vs. shoebox

    So now I have another question... let's say I tell the IRS I average 1100 a month (because that's the minimum I could be making and still be paying my rent and car note) how much will I owe? Is it still 15%? And when I had reg jobs, I would get money back in February because the govt took more than they were supposed to, so is it possible I will actually owe less than 15%? And will I have to pay it all at once, or will they let me set up a payment plan? I would like to pay taxes, but I just have a lot of other things I'd rather pay for and I really don't want to go file and have the accountant be like "okay now hand over $2000."

  5. #30
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    Default Re: Bank account vs. shoebox

    To stay out of trouble with the IRS:

    1) File your tax returns, and don't lie.
    2) Avoid unusual expenses being written off in your returns--this triggers automatic alarms and you can then easily get audited. You do NOT want to get audited, even if you are broke. Before I was a DJ and started making good money, I was an artist and broke. I kept overdrawing my bank account, but because I was self-employed, I wrote off the charges as a business expense. Bam! Got audited, and it was a pain in my ass.
    3) Do not drive a flashy car. If you owe money, they will take it. If you get audited, they will know you have one. The first thing I did when the woman came to audit me, was show her my old beater artistmobile and said 'Does this look like the car driven by a guy cheating on his taxes?' Maybe it even helped.

    There was a time when I kept a lot of cash in my house, almost all singles. At one point I actually made a giant pile on my floor and literally wallowed in money--that was great fun! But I got more and more worried someone would come and kill me for it. After I made the mistake of telling a couple people I really trusted about it, and I found out they told someone else, I got really worried about it. But it took a long time to count and bundle up all those singles! Then for a while I was still worried about it, because all you need is a rumor going around that you have or had a lot of cash in your house, and the fucking junkies will be coming with guns to try and take it away. And in this business, the junkies are never far off.

    Having taken care of that little problem, I can tell you--the bank is the place to keep your money, outrageously low interest rates or not.

    That being said, don't let anyone fool you with insipid ads telling you how much they care--the goddamned banks have got the American Middle Class by the fucking balls. They are the lesser of two evils: junkies with guns, or banks using your money to get rich and giving you jackshit in return. Bank of Amerika might be stealing from you every time they make you pay to cash a check written from one of their accounts, etc., but at least you get most of the money. The junkies will take all of it...
    You must have chaos within you to give birth to a dancing star.
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    Free your mind, and your ass will follow.
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  7. #31
    Veteran Member Joanna_Kaary's Avatar
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    Default Re: Bank account vs. shoebox

    Djoser I agree so much about the junkies... or even non-junkies who are just thieves! I'm so paranoid, that when I do have cash in my house I hide it in really ridiculous places like inside a cereal box, with the hope that if someone does break in, they're not actually after me lucky charms...

  8. #32
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    Default Re: Bank account vs. shoebox

    Lol too funny!

  9. #33
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    Default Re: Bank account vs. shoebox

    Quote Originally Posted by Joanna_Kaary View Post
    Djoser I agree so much about the junkies... or even non-junkies who are just thieves! I'm so paranoid, that when I do have cash in my house I hide it in really ridiculous places like inside a cereal box, with the hope that if someone does break in, they're not actually after me lucky charms...


    This is classic...

    I have various swords and axes in my apartment, one of them right next to my bed. Even after getting rid of all those singles. But if they have guns, I'm still fucked. Fortunately for me, my apartment is not easy to get to.
    You must have chaos within you to give birth to a dancing star.
    Friedrich Nietzsche

    Free your mind, and your ass will follow.
    George Clinton

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  10. #34
    Veteran Member annabellz's Avatar
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    Default Re: Bank account vs. shoebox

    Quote Originally Posted by Joanna_Kaary View Post
    So now I have another question... let's say I tell the IRS I average 1100 a month (because that's the minimum I could be making and still be paying my rent and car note) how much will I owe? Is it still 15%? And when I had reg jobs, I would get money back in February because the govt took more than they were supposed to, so is it possible I will actually owe less than 15%? And will I have to pay it all at once, or will they let me set up a payment plan? I would like to pay taxes, but I just have a lot of other things I'd rather pay for and I really don't want to go file and have the accountant be like "okay now hand over $2000."
    If youre curious about playing around with potential tax scenarios go online to tax-act or turbo tax and enter in some bogus info (a fake name,ss#,address,etc) enter in your income as 1100 a month and your family size/deductions and see how much you get back. See what happens if you go up to 1200 a month or down to 1000 a month.

    The program is currently set for 2011 tax rates. The rates arent going to change that much next year. Of course youre not really suppose to do this. Youre suppose to honestly enter exactly what you earned not a cent more not a cent less- but you asked- so Im answering.

    (As for payment plans I believe as long as you owe less then 10k youre eligible for a payment plan with the IRS)

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  12. #35
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    Default Re: Bank account vs. shoebox

    I'm planning to return to university next September but I didn't file taxes for 2011 (I had only worked October-December for that period) and it was the first year that my parents didn't claim me as a dependent. So would it be risky to apply for FAFSA even if I make sure to file taxes for 2012 next year?

  13. #36
    Veteran Member Joanna_Kaary's Avatar
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    Default Re: Bank account vs. shoebox

    thanks annabellz!

  14. #37
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    Default Re: Bank account vs. shoebox

    I'm planning to return to university next September but I didn't file taxes for 2011 (I had only worked October-December for that period) and it was the first year that my parents didn't claim me as a dependent. So would it be risky to apply for FAFSA even if I make sure to file taxes for 2012 next year?
    Arguably, filing for FAFSA or not won't constitute much of an increased risk. The IRS is still going receive a report from the college bursar's office showing that you spent X thousand dollars on college tuition, and IRS computers are still going to go searching for a matching tax return reporting ( and paying taxes on ) an amount of income sufficient to explain where the college tuition money came from. No longer being considered a dependent of your parents only makes the IRS computer match-up more clear cut, by taking the possibility of your parents providing tuition money out of their own after-tax incomes off the table.

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