This is topic Few things are as revolting... in forum Books, Films, Food and Culture at Hatrack River Forum.


To visit this topic, use this URL:
http://www.hatrack.com/ubb/main/ultimatebb.php?ubb=get_topic;f=2;t=041817

---

Posted by Puffy Treat (Member # 7210) on :
 
...as beginning the process of doing one's taxes expecting a decent return...

...then finding out one owes $600.

Ouch.

Not a happy camper, right now.
 

---

Posted by Synesthesia (Member # 4774) on :
 
I thought I was unhappy when my 1171 refund got strunk to 326... They are so lucky I am bad in math.
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 
Actually, that's excellent. It's like you got a no-interest loan from the government.

Unlike me, who gave a no-interest loan.
 

---

Posted by theresa51282 (Member # 8037) on :
 
You've managed to make even my tax refund sound like a bad thing. I am officially having a cranky day.
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 
Tax refunds are a bad thing.

And the worst thing about them is people think they're a good thing.
 

---

Posted by Synesthesia (Member # 4774) on :
 
I tend to think they are a good thing because they used to be... well, big. Big enough to buy a PS2 or something I normally couldn't buy.
Now I want to find a way to KEEP more of my money without owing them any money.
As I NEED my money...
 

---

Posted by King of Men (Member # 6684) on :
 
Ye gods, the government here doesn't pay interest? Talk about rude!
 

---

Posted by Katarain (Member # 6659) on :
 
Yeah, the whole idea that the government gets an interest free loan from me ticks me off. Sure, it's like a no-interest savings account where you actually get a big chunk of money at the end, but it's better just to save that money yourself. But that takes discipline.

I'm too scared to change the amount they take from me, though. I definitely don't want to have to pay at tax time.
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 
If you have enough money to buy a PS2 with a tax refund, then you would have enough money to buy one without a tax refund, should you choose to.

If they would let me, I would have them take no money out of my paycheck, and then I'd just write them out a check for the entire year on April 15th.
 

---

Posted by Katarain (Member # 6659) on :
 
KoM, you mean there are places where the government pays interest if they take too much tax?!
 

---

Posted by Katarain (Member # 6659) on :
 
mph, they won't let you do that? I thought you just had to fill out the right forms with your HR department.
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 
Really? I haven't ever looked into it, but I was under the impression that it was not allowed.

*decides to look into that*
 

---

Posted by Katarain (Member # 6659) on :
 
At the very least you can up your deductions enough so that you're paying much less or not at all. But I'd recommend putting money into a savings account so that you have extra to pay taxes at the end! But then, you're probably not like me. Very bad with saving money.

If they didn't take taxes from me, I would spend it all every month. (Especially since our basic expenses far exceed our income.)
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 

quote:

---

But I'd recommend putting money into a savings account so that you have extra to pay taxes at the end!

---

quote:

---

Originally posted by Katarain:
KoM, you mean there are places where the government pays interest if they take too much tax?!

---

quote:

---

Originally posted by mr_porteiro_head:
Tax refunds are a bad thing.

And the worst thing about them is people think they're a good thing.

---

quote:

---

Can you explain why me spending $600 I would really much rather have in my savings when my earnings are already severely depleted by FICA, SS, and MC withholding is a better thing than getting a small refund?

---

Whether the government pays you or you pay the government at tax time, that $600 is going to the government.

The difference is that when you receive a rebate, the government has kept for many months money that is yours by right. That's good for the government and bad for you. But when you have to pay at tax time, it means that you've been able to avoid payment for many months. Paying the same later instead of today is almost always a good thing.
 

---

Posted by King of Men (Member # 6684) on :
 
Hence, for example, credit cards.
 

---

Posted by Puffy Treat (Member # 7210) on :
 
In my case I've been having federal taxes withheld and -still- owe money.

You're talking about a case were nothing was withheld at all, and then I pay. That's not what happened here.

If I had claimed myself exempt from withholding, what you said would apply. But I didn't.
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 
It's just a matter of degree. If more had been withheld, you would receive a rebate, but at the cost of all that money being taken from you earlier rather than later.
 

---

Posted by Tante Shvester (Member # 8202) on :
 

quote:

---

Originally posted by mr_porteiro_head:
Tax refunds are a bad thing.

And the worst thing about them is people think they're a good thing.

---

quote:

---

Few things are as revolting...

---

quote:

---

You're talking about a case were nothing was withheld at all, and then I pay.

---

This is said from the perspective of someone who really DOES live paycheck to paycheck.

Look at it this way: every month, you put $50 into the bank to gain interest. Depending on your bank account, this probably made you at least $10. At the end of the year, you give that $600 back to the government, then keep the $10.

So you actually profited from the exchange, unlike someone who gets a $600 refund.
 

---

Posted by Tante Shvester (Member # 8202) on :
 
Don't forget to pay taxes on that $10 interest, though.
 

---

Posted by King of Men (Member # 6684) on :
 
Mind you, interest rates on American saving accounts being what they are, you wouldn't make very much money that way. Are those ten dollars really worth the hassle of having to figure out how much you should be withholding?
 

---

Posted by mr_porteiro_head (Member # 4644) on :
 

quote:

---

Originally posted by Tante Shvester:

quote:

---

Originally posted by mr_porteiro_head:
Tax refunds are a bad thing.

And the worst thing about them is people think they're a good thing.

---

You speak wisely, my friend.

---

Watch out. You're agreeing with a Republican.
 

---

Posted by Tante Shvester (Member # 8202) on :
 
I'm very agreeable.

And, hey, some of my best friends are Republicans. Many of them aren't really evil, just misguided.
 

---

Posted by Tante Shvester (Member # 8202) on :
 
<-- also is not a Democrat
 

---

Posted by Tante Shvester (Member # 8202) on :
 
Some of my best friends are Democrats. Many of them aren't stupid, they just haven't been enlightened.
 

---

Posted by Kwea (Member # 2199) on :
 
lol
 

---

Posted by Goody Scrivener (Member # 6742) on :
 

quote:

---

Originally posted by mr_porteiro_head:
Tax refunds are a bad thing.

And the worst thing about them is people think they're a good thing.

---

I've been trying for the last several years to find out how to go about reducing the amount of tax being withheld so I get less of a refund. Finally this year I was told by a CPA that if not enough was taken out of my paychecks, I'd be hit with severe penalties during the tax year EVEN IF my various deductions and credits make up the difference at the end. So there's apparently nothing further I can do to reduce my refunds.
 

---

Posted by Belle (Member # 2314) on :
 
It just depends on how you look at it. We've been small business owners for some time. Now last year we shut the business down, but still had some business debt and got paid as an independent contractor for part of the year so we still have to file a Schedule C.

When you own a business, you certainly do hope for a refund, because the alternative is that you might pay a whole bunch. Plus, you have to estimate what your taxes are going to be for the year and divide that by four and pay that amount quarterly. When you're a contractor, it's hard to know what you'll make exactly. So, we tended to over estimate and pay too much. I was happy to get a refund because I knew then we had not made a terrible mistake and wound up owing a bunch.

'Course, there were years we did have to write a fat check to the IRS, if we had a better quarter than we thought we might.

But, since when I was a child my parents wound up in serious trouble with the IRS (my stepfather had received some additional income he did not report, but the IRS found out about) and I witnessed what kind of power they have and what type of impact they can make. I was in high school and suddenly all our extra money disappeared, eventually leading to the loss of our home and my family moving in with my grandparents.

So I admit I'm scared of the thrice damned IRS and if I get a refund, then I exhale in relief, because I never want to be in the position of owing them.
 

---

Posted by mackillian (Member # 586) on :
 
Katarain, you should live in a state that doesn't have income tax.
 

---

Posted by Tante Shvester (Member # 8202) on :
 
State income tax is nuttin' compared to what the Feds need. I mean, at least in New Jersey, the state doesn't pay for schools -- that's municipal -- and that's the biggest chunk. And, at least in New Jersey, we don't have to finance the really expensive stuff, like, uh, war.
 

---

Posted by ketchupqueen (Member # 6877) on :
 
Um, Katarain, it is supposed to be totally free-- but TurboTax has had problems this year. We called them and got them to refund the fees.
 

---

Posted by quidscribis (Member # 5124) on :
 

quote:

---

Originally posted by Katarain:
KoM, you mean there are places where the government pays interest if they take too much tax?!

---