April 15th comes awful quick these days. If you're not careful, you might just miss it. Yet, it's hard to believe that most people didn't have to pay income taxes a little over 100 years ago; our government raised most of its funds via tariffs and customs duties. Now, tax day is a day that many people dread. In my case, I have to over withhold through the year on money I earn so that I can make up for under withholding on my pension. Although I can afford to pay estimated taxes throughout the year, I prefer to pay them up front and not have to worry about finding money to pay taxes at tax time.
If you think I have it bad, I know someone who has sold a house and is now renting. Although this person has owned a share of the home for over 30 years, a divorce and property settlement may trigger the payment of more taxes than this person would want to pay. (As if we ever want to pay taxes.) Thankfully, this person can shelter a $250,000 gain from the sale, but what about this person's share of the gains that must be shared with an ex-spouse? I know that my brother and I will be paying capital gains on any gains we have from selling our family homestead, as neither of us have lived in the house for years.
Others have it even worse. My niece is an American citizen living in the United Kingdom. She has to file taxes to two governments. Luckily, the United States allows people to exclude a certain percentage of overseas income from double taxation. (I don't remember the figures or the mechanisms.) But if she had as large income, she'd be going broke giving money to two governments. (I want to find out what my brother had to do for her this year - he could provide me with an education on this topic.) Luckily for UK subjects, they don't get taxed by the UK for income earned overseas.
At least, I only have to give New York under $200 this year. I'd rather owe NYS than owe the Federal government, as NYS takes forever to send out refunds....
