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Tax Bill

Tax Bill

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PeoriaDotCom Active Indicator LED Icon 7 Site Admin
~ 4 years ago   Apr 5, '20 11:03am  
Just curious...it's hard to gauge if a tax is high or not without including the value of the house... I bought a house in Texas for $162k and last year the taxes were about $5.2k. But of course Texas doesn't have state income tax...
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mypeez Active Indicator LED Icon 15
~ 4 years ago   Apr 5, '20 11:33am  
@PeoriaDotCom : Well there you go. Once you take take the time to peel apart the onion, you usually find it it is a net zero no matter which state you are in Emoticon. Either that or you are receiving way less services for those "cheap" taxes.
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pictureme2 Active Indicator LED Icon 2
~ 4 years ago   Apr 5, '20 12:03pm  
@JnJ : This was the case with my parents' home in Hanna City when I sold it after they both passed. I told the young couple that purchased it that my parents' had a couple of special tax breaks on the house when they had it. And, I know the taxes went up after the young couple bought it. And, my Dad was a veteran.
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DennisinMH Active Indicator LED Icon 12
~ 4 years ago   Apr 5, '20 12:29pm  
States that have no income tax...find ways to make up for it in other taxes and fees.
 
Areas that have higher taxes and fees usually means lower property taxes or other fees to balance it out.
 
Nevada, for example, had a license renewal fee of $300 a year. But they had very good roads. And that amount was in 1984. This was according to my Sister-in-law who's lived in Vegas since 1981.
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mypeez Active Indicator LED Icon 15
~ 4 years ago   Apr 5, '20 12:32pm  
@DennisinMH : They have very good roads because they are in a desert Emoticon. No freeze / thaw to heave and break apart the pavement.
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pictureme2 Active Indicator LED Icon 2
~ 4 years ago   Apr 5, '20 12:36pm  
@craftywoman : Good for you!!
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AngryCodger Active Indicator LED Icon 5
~ 4 years ago   Apr 5, '20 2:10pm  
It would not surprise me at all to see Illinois do away with the pension/SSA income exemption in the near future. They'll use this pandemic as their excuse.
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AngryCodger Active Indicator LED Icon 5
~ 4 years ago   Apr 5, '20 5:38pm  
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JnJ Active Indicator LED Icon 17
~ 4 years ago   Apr 5, '20 8:55pm  
@PeoriaDotCom : Wow that is high! Although not having the state income tax helps. Is that a recent thing? (no state income tax?)
 
Although I would rather pay income tax than property tax. Property taxes hurt retirees
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PeoriaDotCom Active Indicator LED Icon 7 Site Admin
~ 4 years ago   Apr 5, '20 9:42pm  
PeoriaDotCom : Wow that is high! Although not having the state income tax helps. Is that a recent thing? (no state income tax?) Although I would rather pay income tax than property tax. Property taxes hurt retirees
 
@JnJ : There has never been state income tax in Texas as far as I know. Retirees do get a property tax deduction, and the property taxes are frozen at age 65 so they never go up after that...
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JnJ Active Indicator LED Icon 17
~ 4 years ago   Apr 6, '20 8:24pm  
Retirees do get a property tax deduction,
 
@PeoriaDotCom : You mean on your federal tax return? That is somewhat a myth, particularly now since Potus Trump changed the tax code a few years ago. He put a cap on property tax deductions, and the deduction only counts if you itemize rather than take the standard deduction - which most people take the standard deduction. So in reality most people do not get a deduction on their federal tax return for property taxes.
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PeoriaDotCom Active Indicator LED Icon 7 Site Admin
~ 4 years ago   Apr 6, '20 11:16pm  
PeoriaDotCom : You mean on your federal tax return? That is somewhat a myth, particularly now since Potus Trump changed the tax code a few years ago. He put a cap on property tax deductions, and the deduction only counts if you itemize rather than take the standard deduction - which most people take the standard deduction. So in reality most people do not get a deduction on their federal tax return for property taxes.
 
@JnJ : No, not off federal taxes, off of the actual property tax bill. The bill is based on the house valuation. You get something like (House Valuation - $40,000) x TaxRate = PropertyTaxBill, if you're retired. If your house is worth $150k at age 65, then your prop tax bill is ($150k - $40k) x TaxRate...and it stays frozen at that dollar amount even if you're 95 and your house is worth 10x what it was when you retired.
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craftywoman Active Indicator LED Icon 2
~ 4 years ago   Apr 7, '20 11:43pm  
@JnJ : Sorry, but you are wrong..we've owned this house for 2 years.....taxes are just low in this area...when I left this town 16 years ago..my taxes were $200 per year on a 1200 sq ft home..one reason we moved here....If you're a Vet..you don't have to pay property taxes..found that out when my dad died..he died in the month of March..we always get our taxes in June..I waited and didn't get them..finally called the clerk's office..they asked if he was a vet..I said yes..and they said he doesn't owe any.....Mr. Crafty isn't a vet..darn it..
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