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Tax refunds!

4K views 99 replies 68 participants last post by  sunnysandiegan 
#1 ·
Have you filed yet? How much are you getting back? If you haven't, how much do you think you'll get back?

I'm getting $778 from federal and $119 from the state!
: I only paid in $447 in federal, but since I didn't make enough last year to have to file (and would have owed if I did --
: my old job screwed up the paperwork and didn't withhold anything but SS and medicare) I get last year's stimulus money this year!

What are you planning on doing with your money? I'm going to get some much needed household stuff (curtains and paint for my kitchen) and clothing, and the rest is savings/emergency money, which I desperately need.
 
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#52 ·
Quote:

Originally Posted by sunnysandiegan View Post
I am hoping we finally got the withholdings correct and do not receive a refund.


I'd rather not give the government an interest-free loan.
And, in the case of our state gov't, it may be an indefinite interest-free loan...
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.

Do some work on your withholdings, and add what would have been the rebate into your normal budget. Your budget will be more realistic, and you can either pay off interest-bearing debt or earn interest instead of giving an interest free loan to the gov.
 
#54 ·
Quote:

Originally Posted by choli View Post
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.

Do some work on your withholdings, and add what would have been the rebate into your normal budget. Your budget will be more realistic, and you can either pay off interest-bearing debt or earn interest instead of giving an interest free loan to the gov.
(personal savings account)Interest payment on my expected return($1200):
$1.20 per year

Surprise money out of my fixed monthly budget if I tried for a $0 tax return and was off by just 1 withholding "exemption":
$680

It is worth $1.20 worth of interest that I am "giving the government" so that I can insure myself against a surprise $680 tax bill and give myself a non-bonus bonus of 1200 once a year.
 
#55 ·
Quote:

Originally Posted by choli View Post
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.
For many people, a tax refund is a forced savings account. However, for more people that you'd think, a refund is the result of credits. We have four kids and are still trying to use up the adoption tax credit we first claimed in 2005. Although we have a healthy middle-class income, the large refund we are expecting will be the result of the additional child tax credit and the adoption tax credit.

And FTR, we've found it really difficult to figure out the correct number of exemptions to claim because of our circumstances It seems like we adjust it every year, and never seem to get it right. We also have state taxes to contend with, and have difficulties with that. Last year we got $4K back from the federal government and we owed almost $1K to the state (including penalties from not withdrawing enough during the year). It's such a crapshoot.

ANYWAY.... to the original question... we're still waiting on W2s to file, but we'll be getting between $3-4K back from the feds, and I've got my fingers crossed that we adjusted our withholding correctly and that we'll break even on the state taxes this year.
 
#56 ·
Quote:

Originally Posted by choli View Post
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.

Do some work on your withholdings, and add what would have been the rebate into your normal budget. Your budget will be more realistic, and you can either pay off interest-bearing debt or earn interest instead of giving an interest free loan to the gov.
A lot of people's big refunds are EITC, not refunded federal tax withholdings.
 
#57 ·
Quote:

Originally Posted by choli View Post
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.

Do some work on your withholdings, and add what would have been the rebate into your normal budget. Your budget will be more realistic, and you can either pay off interest-bearing debt or earn interest instead of giving an interest free loan to the gov.
We pay nearly zero in income tax over the year - our refund is 99% credits (child credits and the EIC). I think most of us that get big refunds aren't overpaying taxes.
 
#58 ·
No idea what to expect for my refund as I changed jobs mid-year and have only gotten 1 W-2 back so far.

However, I do think it will be significant as I usually get a refund and I now have a child to deduct and will qualify for the Earned Income Tax Credit as well.

Any refund I get will go towards paying off my credit cards.
 
#59 ·
Yep, we'll be seeing about $5600 Federal and about $400-$500 State. The Federal is all but $100 EITC, Additional Child Tax Credit and Stimulus Rebate (for DS born in Nov. 08). We only paid in $170 in Federal this year, and own just over $50 in tax liability.
State is one where we always come close to breaking even, I think that between having a new baby and a lay-off in there for 2008 is why we're due a higher refund this year.
 
#60 ·
Also, some of us have variable income so its impossible to judge withholdings. We had over 4.5k withheld, and 0 needed to be held, but we never know how many jobs DH will have and when he has a job it pays WELL so they tax at a higher rate. So we'll get all that, the ATC, EITC and the stimulus credit for DS. And honestly, its ncie to have the large amount once a year...Enforced savings is worth it sometimes
 
#62 ·
We haven't gotten all of our forms yet but my best guess is about 6000 back federal and we will probably need to pay a bit into the state. This will be the last of our huge federal refunds- we are getting it all back this year through the adoption tax credit. Next year it will be much, much smaller. But still better than pre-DS. I always think it's weird that people with kids pay fewer taxes than people without.
 
#63 ·
Quote:

Originally Posted by choli View Post
Yep. I honestly don't understand when I hear people being all whoop over a tax rebate, like it's some kind of bonus from the gov. That's YOUR money that YOU OVERPAID being sent to you.

Do some work on your withholdings, and add what would have been the rebate into your normal budget. Your budget will be more realistic, and you can either pay off interest-bearing debt or earn interest instead of giving an interest free loan to the gov.
A tax rebate is not money that was over withheld throughout the year.
 
#65 ·
Actually people with kids pay more or about the same taxes PER PERSON (assuming they have enough income). Standard deduction is 5,450 for each person filing seperately. Child tax credit is 1,000.

That is equivalent to the standard deduction for each child and a taxation rate of 18.3%

In other words, unless you are getting back more than you paid because of the child tax credit, and unless you are paying less than 18.3% income tax, you are paying more taxes per citizen than filing seperately.

This makes it a highly progressive tax: the rich are taxed extra for having kids, everyone else is given a break for having kids.
 
#67 ·
We're getting $11k with the $7500 homebuyer's credit. We had bought a junker for me to drive for a while, but considering the door next to our oldest's carseat doesn't properly close, we decided we needed to suck it up and buy a better vehicle. Well tonight we found a 2001 van with 56k miles. In amazing condition. With a 5yr/100k mile (from where is now...so to 156k miles) warranty we paid $6983 out of pocket. Not too bad, I don't think. I'm going to be doing daycare for two kids soon, so the junker sedan wouldn't have cut it anyway. I can't imagine being trapped in the house day-in/day-out with four kids!

The rest is going to catch up our mortgage, pay our lawyer, pay our state taxes ($1383; DH works out of state), and pay off the utility bills.
 
#70 ·
I'm really nervous about our taxes this year. We got married in October and I hear that changes things, plus my husband gets quarterly bonuses and I think that makes things funny. Last year he ended up owing money, and I"m afraid we'll owe even more this year.
 
#71 ·
Quote:

Originally Posted by ShaggyDaddy View Post
(personal savings account)Interest payment on my expected return($1200):
$1.20 per year

Surprise money out of my fixed monthly budget if I tried for a $0 tax return and was off by just 1 withholding "exemption":
$680

It is worth $1.20 worth of interest that I am "giving the government" so that I can insure myself against a surprise $680 tax bill and give myself a non-bonus bonus of 1200 once a year.
Exactly!!

I got all smart one year
and determined how not to get a refund since I didn't want the gov't holding my money, etc. -- well, we wound up having a surprise pay-in of between $700-800 due to tax law changes. Not fun having to come up with that kind of money.

I'll let them have the couple of bucks for the peace of mind of not having to pay in.
 
#72 ·
how long does tax slayer take? My husband did ours today. Hoping it's soon!!!! Most years it comes before my bday and I get better gifts LOL.

Hoping to pay down bills and take a trip to CA to visit my family. Also would like to help my stepson, his g-friend and their baby to fly to see us this summer
 
#73 ·
We don't have all the little bitty things, interest statements and such, but we have the major W-2's and it looks like we'll be getting about $6500!
:
:

Basically that's because dh was deployed, and therefore all his pay was tax free, from Jan - May. Then he separated from the military and was unemployed until the end of August. So the only pay the IRS really sees is what he made from Sept-Dec which was just under 30K. We lost so much of our savings while he was unemployed so I am just over the moon about this refund.

We have now changed his W-4 so that next year we should only get about $200 back. No more EIC for us thanks to dh's new job
(of course EIC was always nice and we've gotten it the past 5 yrs but it's nice to say we are no longer in that income range, we really feel blessed esp during these economic times)
 
#74 ·
I've heard they are voting to pass a bill that would make the first time home buyer $7500 tax credit an actual tax credit, not just an interest free loan. I believe they are debating it on the 25th and it will be for people who buy a home after Jan 1st 2009.
 
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