Tax Season Scares Millennials

Posted on by Caleb Newquist

A NerdWallet/Harris survey found that 80% of taxpayers aged 18-34 "are fearful about some aspect of preparing their taxes." That's the largest percentage of any age group. Millennials are also most worried about "leaving tax-refund money on the table" and "more likely than other age groups to ask key questions before hiring help."

Here's some so-called reasoning:

“In some ways, it makes sense — Millennials tend to have less experience with a deeply confusing tax code, less cash to seek professional help and less need for the more complicated returns that having children or a mortgage can bring,” says Liz Weston, NerdWallet columnist and personal finance expert.

You see, this is the type of rationale that makes all this generational talk pretty stupid. It's true, an 18-year-old probably doesn't have much experience with the "deeply confusing tax code." On the other hand, I hope a 34-year-old has some experience with the tax code, if only it's punching numbers off a W-2 into TurboTax. And did I miss the announcement that 18-34 year-olds stop procreating and sinking themselves into debt?

Anyway, tax season scares lots of people. That's why the bogus IRS calls are such a big success. Still, I'll bet most Millennials prefer tax returns to performance reviews.

[NerdWallet]

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Rich-hating Legislation of the Day: The Ending Taxpayer Subsidies for Yachts Act

Sorry for being a little to the game on this one but everyone seems to still be in their meat-induced comas and this type of proposed legislation has left us wondering: IS NOTHING SACRED? If the affluent in our society can’t write off the mortgage interest on their second home that also happens to be boat, haven’t the terrorists won?


The Ending Taxpayer Subsidies for Yachts Act was introduced by Rep. Mike Quigley (D-IL) with co-sponsors Reps Tim Walz (D-MN) and Gary Peters (D-MI):

“There’s absolutely no reason why taxpayers should subsidize luxury yachts,” said Quigley. “As we work to address our budget challenges, closing this frivolous tax loophole is a no-brainer.”

“We’re going to have to make some hard decisions to tackle our national debt, but this isn’t one of them,” said Walz. “Closing this tax loophole restores the Mortgage Interest Deduction to its original purpose; helping middle class families realize the American Dream through homeownership.”

Currently, taxpayers are allowed to deduct mortgage interest for up to two homes from their tax returns. Yachts equipped with bedding, toilet facilities, and a kitchen qualify even if they aren’t used as a primary residence. The Ending Taxpayer Subsidies for Yachts Act would limit the tax deduction to only those who use their boats as a primary residence.

“We need to get the deficit under control, and that means simplifying the tax code and eliminating special interest tax giveaways like the Yacht Loophole,” added Peters. “Homeownership is part of the American Dream and we should encourage it, but yacht owners don’t need any special handouts, especially in the middle of a budget crisis.”

Also, it’s our understanding that the Reps will use the following footage to make a case for their bill:

[via DMWT]

BREAKING: Republicans Don’t Like President Obama’s Tax Proposals

[K]ey Republicans have not responded positively to signals that President Obama will push for some tax increases in his deficit-reduction plan to be laid out this week. David Plouffe, a senior White House adviser, indicated Sunday that the president would reiterate his call to raise taxes on households making $250,000 and above and also signal a desire to look at other provisions in the tax code that wealthier taxpayers use to their advantage. In his fiscal 2012 budget, released in February, the president called for allowing the Bush tax cuts to expire for income above $200,000 for individuals and $250,000 for couples at the end of next year. That statement came roughly two months after a compromise with congressional Republicans had extended current tax rates for the richest taxpayers for two years. [The Hill]