Union Dues

satellitedriver

Moderator
In lawyer speak, you are assuming facts not in evidence.

I will agree that this was most likely the case when we used to be able to deduct the interest on our credit cards.

I use the long form each year. When both my kids were in college the additional deductions for tuition expense came in handy, along with mortgage interest, unreimbursed job expenses and the other deductions that are written in to the tax law for a reason, not just because we are in debt. Taking the standard deduction just to be able to use the short form would cheat me out of deductions which I am entitled to.
No assumption on my part, just observation of tax law.
Expense is debt, interest is debt.
Yes, you can get more deductions, if you are paying out more. (ie; debt).
Case in point.
Last years taxes, on a filing married jointly, on reported income of $100,000, incurred a tax rate less than 14%, on the short form.
I would rather be debt free and keep 86% of my earned, income than just get a percentage of my debt service "returned" to me from the IRS.

Lawyer speak aside, my point was simply that you actually have more money in your pocket, if you are debt free.
In lawyer speak, it was presumptuous of you to ignore the evidence.
I assumed that only getting a portion of your debt load returned to you from the govt., might not be the wisest fiscal decision.
BTW,
I used every legal deduction on the books when I ran my farm, blacksmith business and stained glass business.
 

UpstateNYUPSer(Ret)

Well-Known Member
All good points but for some of us a certain amount of debt is unavoidable. Of course, no debt would be ideal, but there is good debt and bad debt. Good debt would include my mortgage and student loans, the first being an investment in my future and the second being an investment in my children. Bad debt would include credit cards which, I have to admit, I sometimes have a hard time keeping control of (but am getting better at) and installment loans on my car and furniture.

That being said, I am most certainly going to take advantage of all of the legal deductions that I am entitled to based upon my individual situation. As I said before, we used to be able to deduct personal interest (credit cards) but are no longer able to, which I see as a good thing as I think it actually encouraged credit card use.

Do I wish I were debt free? Absolutely and I am working hard to get to that point. Until then, I am going to do all that I can to take advantage of any and all deductions to which I am entitled and to continue to work hard until I can join you in the "debt-free" arena.

On a side note, Sat, I enjoy your posts as you bring a sense of realism and common sense to this forum, and I thank you for that.
 

satellitedriver

Moderator
All good points but for some of us a certain amount of debt is unavoidable. Of course, no debt would be ideal, but there is good debt and bad debt. Good debt would include my mortgage and student loans, the first being an investment in my future and the second being an investment in my children. Bad debt would include credit cards which, I have to admit, I sometimes have a hard time keeping control of (but am getting better at) and installment loans on my car and furniture.

I agree.

That being said, I am most certainly going to take advantage of all of the legal deductions that I am entitled to based upon my individual situation. As I said before, we used to be able to deduct personal interest (credit cards) but are no longer able to, which I see as a good thing as I think it actually encouraged credit card use.

I agree.

Do I wish I were debt free? Absolutely and I am working hard to get to that point. Until then, I am going to do all that I can to take advantage of any and all deductions to which I am entitled and to continue to work hard until I can join you in the "debt-free" arena.

You will get there. It just takes time and focus.

On a side note, Sat, I enjoy your posts as you bring a sense of realism and common sense to this forum, and I thank you for that.

Thank you, for your kind comment.
I just speak my mind, maybe too much.

 
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