Taxes

Reply #5

Coin Toss — Thu, 08 Feb 2007 15:08:08 GMT

amsoly41

I found a documentary on YouTube or Google Video the other day

Called A m e r i c a n F r e e d o m t o F a s c i s m .

It claims that the Income tax is illegal.

The income tax started as a temporary tax to help finance WW I.

This video has been going around and people are jumping, or wanting to jump on this idea, DON'T DO IT.

Just remember: the difference between tax avoidance and tax evasion? 15 to 20 years!

There was a guy in the 1980's that... [ More ]

Reply #4

CA LotteryGuy — Thu, 08 Feb 2007 14:56:39 GMT

The other item to consider is that if your winning ticket is worth over $5000 there will be federal and state withholding taken from your winnings. From a federal standpoint 25% will be withheld. Based on a current maximum tax rate of 35% that means you already have paid 70% of your federal taxes. If you are subject to a state tax the percentage is probably even higher.

Tough to not pay taxes when they already have the money. Also would it even be worth the risk if you have already paid t... [ More ]

Reply #3

amsoly41 — Thu, 08 Feb 2007 13:58:28 GMT

I am not in any way saying that one should not pay his or her taxes.

I pay mine and will continue to.

I do not want to spend the rest of my life in a jail cell.

I just thought this video was interesting.

I wonder how many people fall for this and end up in prison.

I should have had a disclaimer stating that I am not a tax expert.

Nor a tax consultant so If you choose to evade taxes it is your prison sentence.

Reply #2

SirMetro — Thu, 08 Feb 2007 13:31:33 GMT

There is actually a line item on the Tax Forms for Lottery/Gambling/Prize Income and if I am not mistaken, it is treated as Normal Income Tax so that it can be taxed at the highest possible tax rate allowed. Get a copy of the latest income tax forms and you will be able to see where it is located. I think it is a few lines under Income.In regards to the video, that is something that generally circulates at least once a year around tax season. Just keep this in mind, it was the IRS who took out t... [ More ]

Reply #1

Badger — Thu, 08 Feb 2007 13:30:53 GMT

Note that I am not a tax accountant. However, I believe that it comes under Earned income .

As far as income tax being illegal, even if it was, or is, (this stance has been going on for decades now) those that have tried not paying taxes under that argument have found themselves spending much time in small prison cells looking at the walls.

You see, whether something is legal or not, the only thing that counts is who's holding the power. And if the govt says something is legal, then it d... [ More ]

Taxes

amsoly41 — Thu, 08 Feb 2007 13:17:16 GMT

What category does winnings on the Lottery fall under?

Earned Income Tax?

Windfall Tax?

Gift Tax?

Other Tax?

I found a documentary on YouTube or Google Video the other day

Called A m e r i c a n F r e e d o m t o F a s c i s m .

It claims that the Income tax is illegal.

I have not found any thing on snopes about it. (Urban Legends)

I don't think most people are willing to go to prison over this.

If it is true.

The IRS do... [ More ]