Tax Refund!

[Ragone]

yay.. because i was laid off for a few months.. and my work taking so much out.. it lowered me a full tax bracket, and made my refund mega huge :)

4k(combined state/federal) here i come :)

[Ksyrup]

Yeah, I got just over $1,700 the year...and right now my car is in the shop to the tune of $800+. :(



EDIT: Damn! Make that $1000+ (and counting)... :( :(

[Eaglesfan27]

I'm paying thousands this year :(

(Darn self-employment taxes)

[cartman]

I forgot to do a new W4 after I bought my house last year, so I'm getting back like $9K!

[Balldog]

Since I qualifed for some exemption I do not have to pay taxes on the income I made from selling my house. So instead of paying about a $1000 I get $2000. Now I need to decided if I want to pay off my credit card or go on vacation. Tough decision. :)

[Radii]

Being taxed as a single person for 9 1/2 months and then filing married w/ a dependant sure is fun!

[hhiipp]

Balldog: Credit card! And then try not to charge it up this year and take next years return and go on vactation. :)

No debt >*

[CraigSca]

I dread doing my taxes this year...because of my 6 month layoff, I had to uh... "touch" my 401(k) early in order to survive. I really don't look forward to the additional taxes and penalties I'm going to pay :(.

[FrogMan]

Yeah, I got just over $1,700 the year...and right now my car is in the shop to the tune of $800+. :(
NEVER, ever mention any unplanned cash income in front of appliances, cars, house... They will know you have unused money, and they will break down... Believe me, they will...

FM

[Ksyrup]

I haven't done jack squat today, and so far my car is costing me $1000+, my wife had our floors steam cleaned for $300...and we're planning to take the kids to Busch Gardens this weekend, problably another $500 trip.

Yep, that pretty much wipes out the ol' tax refund.

[FrogMan]

I haven't done jack squat today, and so far my car is costing me $1000+, my wife had our floors steam cleaned for $300...and we're planning to take the kids to Busch Gardens this weekend, problably another $500 trip.

Yep, that pretty much wipes out the ol' tax refund.
sorry, forgot to add to NEVER, ever mention any unplanned income of cash in front of wife or kids either, they'll suck it up like candy... oops too late with the advice I guess ;)

FM

[Ksyrup]

Yeah, the trip to Busch Gardens sounded better when we planned it last weekend, before all of the other stuff popped up.

[FrogMan]

Yeah, the trip to Busch Gardens sounded better when we planned it last weekend, before all of the other stuff popped up.
the classic way :)

FM

[Farrah Whitworth-Rahn]

What's a refund? We never get those.

[gstelmack]

What's a refund? We never get those.
A refund is what happens when you balance out the Federal Income Tax nicely such that you end up owing just a couple of hundred at the end of the year (about as close as you're likely to get), but that throws off the State Withholding enough that they owe you bigtime.

Maybe some day the two of them will get together and I can get them both much closer to what I'll really owe at the end of the year.

[CraigSca]

A refund is what happens when you balance out the Federal Income Tax nicely such that you end up owing just a couple of hundred at the end of the year (about as close as you're likely to get), but that throws off the State Withholding enough that they owe you bigtime.

Maybe some day the two of them will get together and I can get them both much closer to what I'll really owe at the end of the year.
Wow, that's the exact opposite of what I've always seen. Federally, I would always receive $$$ while at the state level (Pennsylvania & Delaware) I would always owe.

[duckman]

Being taxed as a single person for 9 1/2 months and then filing married w/ a dependant sure is fun!
Farrah, isn't it legal for Radii to file single since he was not married for the majority of the year?

[Farrah Whitworth-Rahn]

Farrah, isn't it legal for Radii to file single since he was not married for the majority of the year?Your filing status is determined as of December 31st. So you could be married until December 30, have your divorce final on the 31st and file single.

EDIT: there are special circumstances for legal separations, but I won't go into those

[stevew]

Farrah, isn't it legal for Radii to file single since he was not married for the majority of the year?

I would think Radii would want to file married, should have a much higher return.

[Balldog]

Balldog: Credit card! And then try not to charge it up this year and take next years return and go on vactation. :)

No debt >*

Yeah the choice is easy! And I think with the money I get from my baseball salary I should be able to go on vacation this year!

[digamma]

What's a refund? We never get those.
An interest free loan to the gub'ment?

[duckman]

I'm still waiting on the insurance company I worked for to send me my last W-2. Don't want to go through the trouble of filling out the missing W-2 form.

[MizzouRah]

Ahhhh... 6 G's baby! Wooo hoooo!!!

Widescreen HD TV here I come. :D


Todd

[FrogMan]

I read these 4k and 6k refund and wow, makes you drool... I know I won't be getting anything close to this, only hoping not to have to pay anything...

FM

[cartman]

Of course, my big refund has already been spent. I didn't realize just how much stuff you end up buying when you move into your first house. :(

[Franklinnoble]

Stay at home wife + 2 kids should equal a nice, fat refund...

[MacroGuru]

Bah, only 1700 this year, plus I owe uncle sam for a 401K disbursement that happened back in 2001.

Well, what happened is I took a loan in 2001 against the 401K for a major medical expense. Macromedia laid me off in July.

They forced a cash out in 2004 as they were rolling providers, I received the check, then a month or two later, I receive a letter from the IRS saying I owe them $500 + interest from this payment back in 2001.....When all is said and done, it is 583 dollars.

I owe the state though, $200, which is weird, a lot of people I know, are owing the state of Utah this tax season.

[Radii]

I would think Radii would want to file married, should have a much higher return.


This is correct. My "is fun!" wasn't my usual sarcasm. taxed as single then filing married = 5k refund. Losing some of it b/c Oliegirl had unemployment but still will be getting 4K or so.

[mhass]

Stay at home wife + 2 kids should equal a nice, fat refund...
I'm on this ship too. But someone in the Accounting dept. around here keeps changing my withholding. Every time I try to get my money every month instead of June, someone changes it back and I get a note that says "Others in your financial situation find it beneficial to minimize the tax impact of dependents so as not to owe money with annual returns." WTF.

[SunDancer]

I'm paying thousands this year :(

(Darn self-employment taxes)

Self-employment (would this include business ownership), you have to pay more?

[Ksyrup]

Yeah, I got just over $1,700 the year...and right now my car is in the shop to the tune of $800+. :(



EDIT: Damn! Make that $1000+ (and counting)... :( :(
Final bill - $1,155. :( :( :(

[primelord]

An interest free loan to the gub'ment?
This is exactly why I have never understood why people are so happy to get huge refunds. If you are getting a $6,000 refund it's not like that is extra money. That is money you could have/should have already had and could have been earning interest on.

I guess for some people it just serves as a savings plan, but it seems to me that there are much better ways to go about saving your money.

[Eaglesfan27]

Self-employment (would this include business ownership), you have to pay more?I contract my services as a physician out to a few different hospitals/agencies. In each of those cases, I'm considered an independent contractor, and they pay me a set amount with no taxes taken out. I have to pay taxes on this money (which is fairly significant and means I will be paying MUCHO dinero :( )

Although, I will be taking a faculty job in July and this will no longer be an issue, I plan on using estimated tax payments quarterly this year so I won't get hit with the big bill next year.

[Loren]

I'm on this ship too. But someone in the Accounting dept. around here keeps changing my withholding. Every time I try to get my money every month instead of June, someone changes it back and I get a note that says "Others in your financial situation find it beneficial to minimize the tax impact of dependents so as not to owe money with annual returns." WTF.

hmmm i'm in the accounting department, maybe ill start doing this :D
anddd we got our refund friday, sunday we went out to try to spend spend SPEND..spent like 90 bucks on clothes and couldnt find shit to buy :confused: came home all depressed :(

[Easy Mac]

I got a little under $1k back... decent for 1/2 a years work, or at least off and on for 1/2 a year...

[Buccaneer]

This is exactly why I have never understood why people are so happy to get huge refunds. If you are getting a $6,000 refund it's not like that is extra money. That is money you could have/should have already had and could have been earning interest on.
Mortgage interest and charitable deductions make it happen for me.

[primelord]

Mortgage interest and charitable deductions make it happen for me.
That is fine, but then why not have them take less out? I'd imagine both of those numbers are fairly consistent from year to year so there is no reason you can't adjust your withholdings to reflect that.

[CamEdwards]

Stay at home wife + 2 kids should equal a nice, fat refund...

damn, i hope so. although my wife did end up working for five months this year. next year should be nice though... stay at home wife and FOUR kids.

i'm just happy if i don't have to pay. i've had to pay for the past three years and it sucks.

[Flasch186]

not getting any back :( no big deal.....I pay the cops and the firfighters and to keep the streets good....I dont mind paying my taxes.

[Buccaneer]

not getting any back :( no big deal.....I pay the cops and the firfighters and to keep the streets good....I dont mind paying my taxes.
If you throw in national defense, then that should be all you would need to pay, right?

[Buccaneer]

That is fine, but then why not have them take less out? I'd imagine both of those numbers are fairly consistent from year to year so there is no reason you can't adjust your withholdings to reflect that.
Let's see if I got this right. I'm already at my maximum allowable exemptions on my W-4 (6 or 7, I forget). So they are taken out the minimum they can.

[Flasch186]

If you throw in national defense, then that should be all you would need to pay, right?


well no, since the war stuff is not in the federal budget....thats a seperate bill I guess *sarcasm*....you actually want me to list everything my tax dollar goes to? hmm, my fingers might fall off.

[stevew]

This is correct. My "is fun!" wasn't my usual sarcasm. taxed as single then filing married = 5k refund. Losing some of it b/c Oliegirl had unemployment but still will be getting 4K or so.


You better hope they dont read one of your Poker dynasties tho.....From what i've read, at least, a 10K poker gain and a 9K poker loss is not 1K net gain taxwise, but rather 10K added to your gross income and 9K that can be written off. For instance if you make 40K a year, it could significantly up your tax bracket, and cost you several deductions. But Farrah is the true tax rep here.

[Draft Dodger]

$2700 to us...which hopefully will be the last big refund for a while. we're going to tweak the w-2 this year to try to get that down a bit. that's $50 a week we could certainly use during the year.

[QuikSand]

it could significantly up your tax bracket

You are greivously misunderstanding the concept of tax brackets. There are not magic trigger numbers where one's entire tax liability takes a giant leap forward. You just start paying a higher rate on the additional income from that point forward. It's actually a very sensible system.

[Flasch186]

You are greivously misunderstanding the concept of tax brackets. There are not magic trigger numbers where one's entire tax liability takes a giant leap forward. You just start paying a higher rate on the additional income from that point forward. It's actually a very sensible system.

unless of course, like me, your entire pay is considered bonuses.....thats how they pay us and it doesnt seem right.

[Draft Dodger]

Let's see if I got this right. I'm already at my maximum allowable exemptions on my W-4 (6 or 7, I forget). So they are taken out the minimum they can.

maybe I'm wrong, but I thought there was no cap on the number of exemptions you claim.

[stevew]

You are greivously misunderstanding the concept of tax brackets. There are not magic trigger numbers where one's entire tax liability takes a giant leap forward. You just start paying a higher rate on the additional income from that point forward. It's actually a very sensible system.


I understand that. What i meant was that you could perhaps trigger the AMT, which from what i heard can be a nightmare.

[cartman]

I understand that. What i meant was that you could perhaps trigger the AMT, which from what i heard can be a nightmare.

You usually only see the AMT kick in on high income levels, and because of deductions and what-not, the amount of tax owed is far less than it should be, compared to the income level. It was created to try and prevent a lot of the loopholes in the tax code from being abused.

However, with rising property values, and enriched stock portfoilios, even an average income person might get hit with the AMT if they made a killing on a sale of property or stock. A good run at the poker tables isn't going to trigger the AMT, unless it's the WSOP... :D


Smack me if anything was too out of line tax-wise, Farrah... :D

[tategter]

1900 for us. I would love to get less back and more in our paychecks but my wife has an irrational fear of owing the IRS. Has a lot to do with her parents not having a clue as to how to handle exemptions and owing tons of money every year. Is there a name for this phobia?

[Hammer755]

Tax time is always bittersweet for me. I'm a married homeowner with one kid and a stay-at-home wife, so I usually get a nice size return (and will be adding another dependent in a couple of months!). However, when I see my mortgage statement and how much money I paid toward taxes & interest versus principle, it makes me sick to my stomach.

[Franklinnoble]

damn, i hope so. although my wife did end up working for five months this year. next year should be nice though... stay at home wife and FOUR kids.

i'm just happy if i don't have to pay. i've had to pay for the past three years and it sucks.


If you don't have a good accountant, get one. It makes all the difference in the world.

I did my own taxes for years. I have since discovered that only idiots do their own taxes. For little more than what buying TurboTax costs me, I can have a professional do it, and more than pay for himself in the process.

[Farrah Whitworth-Rahn]

If you don't have a good accountant, get one.

Ahem.

[hhiipp]

Ahem.
You must have missed the part where he said good. ;)

J/k <3

[CamEdwards]

okay, stupid question. i haven't saved receipts or anything like that. is it still worth it to hire an accountant this year, or should i just start saving everything and hire one for next year?

[mhass]

okay, stupid question. i haven't saved receipts or anything like that. is it still worth it to hire an accountant this year, or should i just start saving everything and hire one for next year?
A good accountant will give you a workbook to fill out the required info. They'll let you know what they can/can't do with receipts. You will, of course, need all your W-2's, 1099's, etc.

[Ksyrup]

Tax time is always bittersweet for me. I'm a married homeowner with one kid and a stay-at-home wife, so I usually get a nice size return (and will be adding another dependent in a couple of months!). However, when I see my mortgage statement and how much money I paid toward taxes & interest versus principle, it makes me sick to my stomach.
That's one of the things I'm conflicted about as well - my mortgage is so good, I'm not paying enough interest to be able to itemize deductions. Between that and gradually losing my child tax credits (even after adding a kid this past year), I feel like I need to have more kids or buy a new house with a higher interest rate in order to save on my taxes. However, I can't afford either - I'm making good money, but I feel like I'm in tax purgatory right now. I either need to drop back a bit or take a big step forward. It certainly beats the alternative, and I'm definitely not complaining about my income, but I'm in an awkward place right now.

[Farrah Whitworth-Rahn]

You must have missed the part where he said good. ;)

J/k <3
http://dynamic2.gamespy.com/%7Efof/forums/images/smilies/mad.gif

[Franklinnoble]

okay, stupid question. i haven't saved receipts or anything like that. is it still worth it to hire an accountant this year, or should i just start saving everything and hire one for next year?

Yes.

You can do a lot without receipts. Trust me.

Seriously... I know I'm in CA and all that, but if you wanna talk to my accountant, I'll give you his number. He's cool like that.

[digamma]

That's one of the things I'm conflicted about as well - my mortgage is so good, I'm not paying enough interest to be able to itemize deductions. Between that and gradually losing my child tax credits (even after adding a kid this past year), I feel like I need to have more kids or buy a new house with a higher interest rate in order to save on my taxes. However, I can't afford either - I'm making good money, but I feel like I'm in tax purgatory right now. I either need to drop back a bit or take a big step forward. It certainly beats the alternative, and I'm definitely not complaining about my income, but I'm in an awkward place right now.
Yeah, I hear you.

I think the answer is to start a business out of my home and take a big "loss" on that.

What do you say, Farrah?

[Farrah Whitworth-Rahn]

Yeah, I hear you.

I think the answer is to start a business out of my home and take a big "loss" on that.

What do you say, Farrah?
I'll sell you a software company ;)

[primelord]

For little more than what buying TurboTax costs me, I can have a professional do it, and more than pay for himself in the process.
You can hire a good accountant to do your taxes for just little more than $30?

[Ksyrup]

You can hire a good accountant to do your taxes for just little more than $30?
Shhhh! I sell him my used copy of TT for $299 every year.