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Demi Hall

Where does my tax money go and why don't I get an itemized statement?

I just wrote a check for $42,300 in federal taxes for 2024 and I'm feeling pretty frustrated. When I spend money anywhere else, I get a receipt showing exactly what I paid for. But with taxes? Nothing. No itemized statement, no breakdown, no explanation of where MY hard-earned dollars are actually going. Shouldn't taxpayers receive some kind of statement showing how our money is spent? I mean, I'm sure there are government programs I wouldn't choose to fund if given the option. Why don't I get any say in how this money gets used? If I'm spending this much, I should at least know what I'm buying and have some input on where it goes. Does anyone else feel this way? Is there any way to actually see a breakdown of where my specific tax contribution ends up? Am I the only one who thinks we should be able to direct at least some percentage of our taxes to programs we actually support?

I completely understand your frustration. The lack of a personalized receipt for taxes is something many taxpayers find frustrating. While you don't get an itemized statement for your specific contribution, the federal government does publish detailed budget information that shows how tax dollars are allocated. The Office of Management and Budget (OMB) and Treasury Department publish annual reports showing government spending by category. If you're curious about where your specific $42,300 went, you can look at the federal budget percentages and calculate approximate amounts. In general, the largest portions go to Social Security, Medicare/Medicaid, defense, and interest on the national debt. Smaller percentages go to education, transportation, veterans benefits, and other programs. The reason we don't get to choose where our tax money goes is because taxation works on a collective basis rather than an individual one. It's based on the idea that elected representatives make spending decisions on behalf of citizens through the democratic process.

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Kara Yoshida

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That makes sense but seems outdated in today's world. Couldn't they at least give us some choice? Like what if I want more of my money going to education instead of military? Is there any country that allows citizens to have some say in tax allocation?

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There are a few countries that have experimented with participatory budgeting at local levels, but not typically at the national level for income taxes. The challenge is that if everyone could opt out of funding certain programs, essential but unpopular services might go unfunded. The most direct way to influence tax allocation is through voting for representatives whose budget priorities align with yours. You can also look at resources like the National Priorities Project website, which has a "tax receipt" calculator that shows approximately how your tax dollars were spent based on the federal budget.

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Philip Cowan

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After going through similar frustration with my taxes, I found this amazing AI tool called taxr.ai (https://taxr.ai) that actually breaks down where your tax money goes based on the federal budget! I was skeptical at first, but it gave me a personalized "receipt" showing approximately how much of my taxes went to different programs. It also explained how the budget process works and showed me ways to better understand government spending. What I found most useful was their analysis of how tax policies have changed over time and how that affected where my money goes. I've been using it to track year-over-year changes to see if there are any significant shifts in spending priorities.

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Caesar Grant

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Does it actually give you a breakdown specific to YOUR tax payment? Or is it just applying general percentages from the federal budget to whatever number you input? Because I could do that with a calculator...

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Lena Schultz

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Sounds interesting but how accurate is it? Does it take into account the difference between discretionary and mandatory spending? A lot of the budget is predetermined by law.

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Philip Cowan

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It applies the federal budget percentages to your specific tax payment, so you see exactly how much of your money went to each category. You're right that you could calculate this yourself, but the tool makes it super easy and provides additional context and analysis. The tool definitely distinguishes between discretionary and mandatory spending. It breaks down both categories and explains which parts of the budget are fixed by law (like Social Security and Medicare) versus what Congress can adjust annually (like defense and education). It also shows historical trends and provides projections based on proposed budget changes.

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Caesar Grant

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I tried out taxr.ai after seeing it mentioned here and was actually really impressed! It gave me a detailed breakdown showing that about 24% of my tax payment went to Social Security, 25% to healthcare programs, 15% to defense, and smaller amounts to other categories. What I found most valuable was seeing exactly how much of my money ($7,800 from my tax payment) went to interest payments on the national debt - that was eye-opening. The tool also explained how budget appropriations work and the difference between mandatory and discretionary spending. Way more informative than I expected and definitely helped me understand the tax system better.

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Gemma Andrews

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If you're frustrated about not getting answers from the IRS about your tax questions, I had the exact same problem until I found this service called Claimyr (https://claimyr.com). After spending HOURS trying to reach someone at the IRS with questions about tax allocation and getting nowhere, I used Claimyr and got through to a real person in less than 20 minutes! They have this system that holds your place in the IRS phone queue so you don't have to listen to that awful hold music for hours. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c. The IRS agent I spoke with actually explained some of the budget allocation processes and directed me to resources where I could see more detailed breakdowns. Saved me so much time and frustration.

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Pedro Sawyer

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Wait, isn't this just a paid service to call the IRS? Why would I pay for something I can do myself for free if I'm patient enough?

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Mae Bennett

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Sounds fishy. How exactly do they "hold your place"? And why would an IRS agent give you information about budget allocations? That's not their job - they just process tax returns and answer tax code questions.

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Gemma Andrews

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Yes, it is a service that calls the IRS for you, but the value is in not having to waste hours of your life on hold. They use a system that waits in the queue for you, then calls you when an agent is actually available to talk. For me, the time saved was absolutely worth it. The IRS agent didn't give me detailed budget breakdowns, but they did direct me to the right resources on the Treasury and OMB websites where that information is available. They also explained which parts of my tax questions they could answer (like how the tax collection process works) versus what would be handled by other departments. I found it helpful to speak with someone who could at least point me in the right direction.

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Mae Bennett

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I'm seriously eating my words right now. After being super skeptical about Claimyr, I decided to try it because I had some complicated questions about tax allocation that I couldn't find answers to online. I was shocked when I got a call back in 25 minutes telling me an IRS agent was on the line. The agent couldn't give me a personalized breakdown of my tax dollars, but they did email me links to several government resources that showed detailed federal spending reports and explained the budget process. They also clarified which parts of taxes go to which programs. Having a real conversation saved me hours of research and frustration. I hate admitting when I'm wrong, but this service actually delivered what it promised.

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Look into the concept of "tax expenditure analysis" - its basically a form of govt spending that happens through the tax code rather than direct spending. Things like mortgage interest deductions, tax-free employer health insurance, 401k tax deferrals etc. These "tax expenditures" cost the govt hundreds of billions but dont show up on regular budget docs. https://www.taxpolicycenter.org/briefing-book/what-are-tax-expenditures-and-how-are-they-structured

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Demi Hall

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This is really interesting and not something I've heard about before. So these tax breaks are essentially government spending in disguise? Do they publish numbers on how much these tax expenditures cost compared to direct spending programs?

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Yes, they absolutely do track these numbers! The Treasury Department publishes an annual "Tax Expenditure Budget" that shows the cost of each tax break. In recent years, the total cost of all tax expenditures has been around $1.5 trillion annually - comparable to all discretionary spending combined. The biggest tax expenditures include the exclusion for employer-provided health insurance (costs about $300 billion/year), preferential rates for capital gains, and various retirement savings incentives. What's interesting is these tax breaks often benefit different income groups than direct spending programs, with many of the largest tax expenditures disproportionately benefiting higher-income taxpayers.

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Melina Haruko

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Has anyone tried using those tax choice designation options on some state tax forms? Like in CA we can choose to donate part of our refund to specific causes. I wish the federal return had something similar! Maybe even just like 10% of your taxes could be allocated to departments of your choice?

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Those state checkoffs aren't the same thing though. Those are voluntary donations FROM your refund, not directions on how your actual tax money is spent. The government would never give up control on spending decisions!

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I completely get your frustration! $42,300 is a huge amount to pay without knowing exactly where it goes. While we can't get personalized receipts, there are actually some good resources to see the bigger picture. The White House Office of Management and Budget publishes a "Taxpayer Receipt" tool that lets you input your tax amount and see approximately how it breaks down across major categories like defense, healthcare, Social Security, etc. It's not perfect, but it gives you a much better sense of where your dollars are going than the complete black box we usually get. What really opened my eyes was learning that a significant chunk goes to mandatory spending (Social Security, Medicare, interest on debt) that Congress can't easily change, versus discretionary spending where there's more annual debate. Understanding that distinction helped me realize why budget fights often focus on a relatively smaller portion of total spending. I also started following my representatives' voting records on budget bills more closely since that's really our main way to influence these decisions. It's not the same as choosing where our money goes directly, but it's something!

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Dylan Evans

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Thanks for mentioning the White House Taxpayer Receipt tool! I just tried it and it's exactly what I was looking for. Really eye-opening to see that out of my $42,300, about $10,300 went to Social Security, $8,900 to healthcare programs, and $6,300 to defense. The mandatory vs discretionary spending breakdown is fascinating - I had no idea that so much of the budget is essentially on autopilot. Makes me realize why the political fights over spending often seem to focus on relatively smaller programs. Definitely going to start paying more attention to how my representatives vote on budget issues since that seems to be the main lever we have as citizens.

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