What's the most you got back from taxes

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amother

Brunette

Tue, Feb 02 2016, 3:53 am

Last year, we didn't owe income tax. DH is a student and in the beginning of the year, I worked for an Israeli company. The US and Israel have a tax treaty. Then, I was on maternity leave for a few mos. By the time, I returned to work, I made under $400.00 as an independent contractor.

We filed and didn't pay anything (other than what we paid our accountant b/c it was complicated) and got a refund. (One DC k"h)

This year will be different iy"H, since b"H I've exceeded $400.00 as an independent contractor for an American company. But, I hope we can quality for the higher education grant as DH is attending an eligible school.

amother

Blue

Tue, Feb 02 2016, 6:32 am

I get back between 10k and 12k.

I'm really curious how people add non existing children to their tax return to get back money.

amother

Mistyrose

Tue, Feb 02 2016, 6:47 am

I worked as an independent contracter so taxes were not withheld but I set aside enough for my estimated taxes every quarter. I didn't pay the 4th quarter so I wouldn't be giving uncle sam an interest free loan and count that money as my return. One year I only paid 2 quarters and ended up owing about 12k less than I had set aside. It was really nice.

amother

Lemon

Tue, Feb 02 2016, 7:10 am

Most I ever got back was 2k. Last year I owed 2k.
One year I got back $23.

mommy3b2c

Tue, Feb 02 2016, 7:16 am

gp2.0 wrote:

If you're getting a large tax refund, you're doing it wrong.

It either means that you're overestimating the amount of taxes you need to pay, and basically giving Uncle Sam an interest free loan out of your wages every year, or it means you're lying and cheating (by adding nonexistent dependents, etc.). Either way, if you're doing everything right and you have a good accountant, you shouldn't be getting a very high refund, because you've been "getting" all your own money off your paychecks all year long instead of lending it to Uncle Sam before getting it back.

https://www.daveramsey.com/blo.....axes/

Or it means that your business took a loss and you have a good accountant. We've gotten over $10,000 several times in neither of the scenarios you mentioned. Don't assume you know of every possible scenario .

amother

Orange

Tue, Feb 02 2016, 7:35 am

Gotten back between $6-10,000. My husband is an independent contractor. He gets to deduct his business expenses. I work on a w2. We have several kids ka״h. We also have a mortgage, which the interest is deducted as well.

amother

Jade

Tue, Feb 02 2016, 7:45 am

Just curious for the Living in Israel people. Do you get the earned income credit?
My accountant last year said that I can't cuz I live in Israel, even though we are only here temporarily and I work for an American company.... Just curious if anyone else had this.

amother

Pumpkin

Tue, Feb 02 2016, 8:53 am

We get back around 4-5k every year. Our accountant encouraged us to do it this way as a "forced savings". We immediately give a few thousand of it to our kids schools since we get tuition help and want to show them our hakaras hatov. Then we invest the rest. Works for us.

amother

Seagreen

Tue, Feb 02 2016, 8:56 am

This year, we should be getting back +\- 50 k but it's from over a number of years. And it happened because of falling on very hard times.

gp2.0

Tue, Feb 02 2016, 9:02 am

mommy2b2c wrote:

I mentioned two possible scenarios. I don't assume I know every scenario, and even if I did, why would I go to the bother of typing every exception? There are probably hundreds. This thread is making me lol. None of you have to justify yourselves to anyone, least of all me.

m in Israel

Tue, Feb 02 2016, 9:06 am

amother wrote:

This "forced savings" logic is a perfect example of "giving the government an interest free loan". If you want to make sure to save, why not schedule automatic withdrawals from your bank account into your investment account on the same day that your paycheck goes into the account. The net result is the same -- a smaller paycheck -- but YOU get to earn on that money for an entire year instead of allowing the government to hold on to that money. Similarly, instead of giving money to your kids schools in one lump you can simply pay a bit more tuition every month instead.

amother

Emerald

Tue, Feb 02 2016, 9:14 am

I'm a bit confused . My husband doesn't make a lot and gets tons taken off from taxes. We are so in debt and are hoping we will get back a lot. To Those who barely make anything are you financially very rich??

grace413

Tue, Feb 02 2016, 9:17 am

amother wrote:

Your accountant is correct. You cannot claim the earned income credit if you currently live outside the US.

amother

Royalblue

Tue, Feb 02 2016, 9:21 am

Interesting that you get back for the interest on your mortgage. Do all mortgages have that advantage?

amother

Lime

Tue, Feb 02 2016, 9:24 am

amother wrote:

We get back very little...approx $2800.00 and pay over $4000 a month in taxes between the two of us. We have 4 kids. It has to do with your income bracket. I'm what you would consider lower middle class. We are not eligible for any govt. assistance etc. we work really hard and barely make ends meet. Our accountant advised us to purchase a home as that would help us get a higher return in the end. We will find out this year if there is any difference as we purchased a home at the end of last year. I find that people cheat the system and have their tuition as tax deductions etc....which is against the law and thats why they come out with such a high return in the end...
I have noticed that the lower your income the higher the return.

grace413

Tue, Feb 02 2016, 9:28 am

amother wrote:

Interesting that you get back for the interest on your mortgage. Do all mortgages have that advantage?

All mortgage interest is deductible. However, in order to be entitled to deduct it your total deductions have to be over a certain amount. Other common Schedule A deductions are real estate taxes, state taxes, charitable contributions, non-reimbursed medical expenses which are over 2% of your adjusted gross income.

These deductions have to be more than your standard deduction. I don't have my 2015 tax program yet and I don't remember what the standard deduction was last year.

You should receive a mortgage statement (1098) from your mortgage company which shows the amount of mortgage payment and the amount of interest for the entire year.

m in Israel

Tue, Feb 02 2016, 9:35 am

amother wrote:

We don't get a tax refund most years because we don't withhold too much taxes. IOW if you are working as an employee with a W-2, your employer is taking part of your paycheck each month to pay your taxes. If he takes more than you owe, than you get the extra back when you file your return. Often an employer withholds a lot more than you really owe because you may be entitled to various tax credits like the EIC mentioned earlier, or child tax credits, or you have more deductions than typical, such as a mortgage. The simplest way to "fix" this is to change the amount that your employer withholds. The amount the employer withholds is calculated based on a form you fill out called a W-4. By making sure that form accurately reflects your situation, you can get more money in your paycheck throughout the year instead of the government taking it and holding it all until you file your taxes and then giving it back to you in one lump sum.

HonesttoGod

Tue, Feb 02 2016, 10:19 am

No one is writing how many kids they have, how much they earn, how they claim (married or married withold at single rate etc).
So $8,000 may be a lot for some but who knows if that family earn $30K with 8 kids or whatever.

I have no idea how much we usually get I believe $3k give or take a few.

amother

Slateblue

Wed, Feb 03 2016, 1:31 am

amother wrote:

What's that? Eek... Real newbie here. embarrassed

A W-4 lets your employer know how much federal income tax to withhold from your paycheck. Usually you fill out a W-4 when you start a new job, or when your life circumstances change, but it can be updated at anytime. A W-4 allows you to claim a number of allowances (typically ranging from 0-10, with 2 being single, 3 being married, 4 being married with 1 child, etc.), and the more deductions you claim, the less the amount of income tax withheld from your paycheck each pay period. Therefore, since your goal is to decrease the size of your tax refund, you should increase the amount of allowances that you are claiming on your W-4. If you want help figuring out how many deductions to claim on your W-4, you can use the IRS withholding calculator here: https://www.irs.gov/Individual.....lator

amother wrote:

And do I need a 1099 for a former jobs 401k?

In general, 401(k) contributions are not reported on tax returns, so a 1099 is not necessary. However, in your case, it's not clear what you did with the 401(k) when you left your old employer. Did you leave the money in your old employer's 401(k) plan? Roll the money into an IRA? Cash out the 401(k)? Move the money into your new company's 401(k) plan? More details are needed because some of these options have tax implications while others do not.

amother wrote:

What about savings account that gives almost nothing in interest?

A 1099-INT is only required for savings accounts that earn more than $10 in interest in a year. If your account qualifies, the bank automatically sends you a form; no action is required on your end. It is safe to assume that if you did not receive a 1099-INT in the mail from your bank that you do not need one.

(Disclaimer: I am not an accountant and this should not be construed as tax, legal, or accounting advice.)

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