Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
What do you do with your tax return?
Previous  1  2



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
Puce


 

Post Thu, Mar 26 2015, 8:49 am
amother wrote:
Some people get a large refund because they are not earning enough on the books, so they can't take bigger paycheck all year as there isn't one....

My accountant summed it up for me, the Gov't awards those who don't work or cheat.

Many who receive $10,000 refunds are because of EIC, combine that with child tax credits and the standard deductions any family filing a small amount of income is getting a HUGE check.

Not all who get that are cheating, some legitimately make very little and the 'refund' is not a refund but a gift from uncle Sam.

It's the not on the books earners that are working regular jobs, not paying taxes and getting huge bonus checks every April that are the issue.....

Um, your accountant left out lots of other scenarios. Lets start with my sister--she is a low wage earner but gets credit because the governement wants to see you try to make money. Then there is me. I make six figures as an independent contractor and pay quarterly taxes. The past couple of years I had "big life events" (aka marriage and baby) which changes my tax bracket and ends up owing me a lot (even though all my income is on the books with taxes paid) and then there is the old me whose financial situation changed over the course of a year on a W4 (lost my job and made half my salary over the course of the 12 months) so was owed a lot at the end of the year too, even though I didn't cheat and even though I did pay full taxes. That's just three examples and I'm sure there are lots more. Not everyone that gets a paycheck in April is cheating the system.
Back to top

tigerwife




 
 
    
 

Post Thu, Mar 26 2015, 9:14 am
What's the 'low income' amount that gets you a gift from the government?

Yes, my accountant and myself messed up a lot as well- let's think still filing as single even after marriage and baby... I also neglected to mention my tuition for several years but I'm redoing everything now. I do try to put away savings each month so I'm glad my paycheck was fixed up too... It's depressing to see the huge difference between gross and net...
Back to top

amother
Coral


 

Post Thu, Mar 26 2015, 9:22 am
amother wrote:
Um, your accountant left out lots of other scenarios. Lets start with my sister--she is a low wage earner but gets credit because the governement wants to see you try to make money. Then there is me. I make six figures as an independent contractor and pay quarterly taxes. The past couple of years I had "big life events" (aka marriage and baby) which changes my tax bracket and ends up owing me a lot (even though all my income is on the books with taxes paid) and then there is the old me whose financial situation changed over the course of a year on a W4 (lost my job and made half my salary over the course of the 12 months) so was owed a lot at the end of the year too, even though I didn't cheat and even though I did pay full taxes. That's just three examples and I'm sure there are lots more. Not everyone that gets a paycheck in April is cheating the system.


I'm the Amother that you quoted, I agree 100% that there are legitimate reason for a refund,I should have been clearer and said besides the things that were quoted earlier, there are other scenarios.

Tigerwife, not sure that info, but it makes a difference how many dependents on amount of income.
Back to top

amother
Ruby


 

Post Thu, Mar 26 2015, 11:01 am
Wow, $10k tax refunds??? You ladies are lucky. I have to PAY additional taxes at the end of each year and hold my breath when we file, hoping that they don't demand more money. But once upon a time, when we used to get a refund and b"H didn't need it for anything in particular, we split it between our kids' bank accounts. Now their accounts are nicely padded and I don't feel guilty not putting in much every year.
Back to top

grace413




 
 
    
 

Post Thu, Mar 26 2015, 11:13 am
tigerwife wrote:
What's the 'low income' amount that gets you a gift from the government?

..


It's called the Earned Income Credit. There are various criteria to meet in addition to the amount of income you earn. If you have an accountant doing your taxes he/she should know if you qualify.

There are also child credits which you can get for a higher income ceiling for kids under 17.
Back to top

amother
Cobalt


 

Post Thu, Mar 26 2015, 12:36 pm
amother wrote:
Wow, $10k tax refunds??? You ladies are lucky. I have to PAY additional taxes at the end of each year and hold my breath when we file, hoping that they don't demand more money. But once upon a time, when we used to get a refund and b"H didn't need it for anything in particular, we split it between our kids' bank accounts. Now their accounts are nicely padded and I don't feel guilty not putting in much every year.


Lucky? We are a family of 6 and I am the primary earner. I claim ZERO exemptions on my paycheck and my husband claims two. I also pay a significant amount of student loan interest which lowers our AGI. It's not luck so much as I work for the money. I have a decent earnings B"H but instead of taking home a higher amount with every paycheck, I deliberately bring home less because I enjoy the windfall.
Back to top

amother
Puce


 

Post Thu, Mar 26 2015, 4:20 pm
I just paid off a big student loan bh. That feels good! Just 3 more to go!
Back to top

amother
Babyblue


 

Post Thu, Mar 26 2015, 9:33 pm
A chunk of it goes to pay for my dh's whole life insurance policy and the rest goes into a savings account in the bank.
Back to top
Page 2 of 2 Previous  1  2 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Tax minimization specialist? In NY area?
by amother
0 Thu, Mar 14 2024, 11:47 am View last post
Do you return calls from numbers you don't know?
by amother
24 Thu, Mar 14 2024, 3:27 am View last post
Recommendations for individual tax planner in Five Towns/FR
by amother
1 Wed, Mar 13 2024, 5:35 pm View last post
Iso good cpa for personal income tax
by amother
18 Wed, Mar 06 2024, 9:34 am View last post
Why didn’t we get the child tax credit?
by amother
32 Mon, Mar 04 2024, 5:03 pm View last post