This is topic I'm actually happy about tax time. in forum Books, Films, Food and Culture at Hatrack River Forum.


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Posted by AvidReader (Member # 6007) on :
 
I did the taxes today, and I must say, I like them better since I got married. Hubby doesn't claim any deductions on his W2 and overpays all year to get a nice refund. (I tried explaining about savings accounts.) I started getting a little back when I opened my IRA.

Filing together, we got back $500 more than we did seperately. It paid for the new bed I bought and will pay for his trip to DragonCon in September. For once, that didn't make me crazy.
 

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Posted by Paul Goldner (Member # 1910) on :
 
i need to send out threatening letters. I am missing a w-2 form.
 

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Posted by ketchupqueen (Member # 6877) on :
 
Paul, are you e-filing? If so, and if you have your totals, you can file without it... KPC was issued an incorrect W-2 and e-filed before he got the correction.
 

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Posted by Paul Goldner (Member # 1910) on :
 
I don't have my total, because I'm a bad accountant. Plus, my w-2 is freaking annoying (its a school district w-2, so I don't pay into social security, but I do pay into a teacher retirement account), and the pre-tax and post-tax deductions screw with my head.
 

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Posted by scholarette (Member # 11540) on :
 
I already filed and got my money. I get over two thousand bucks as a return. Considering that I only paid $700 total for taxes, I was pretty happy. I love the EIC.
 

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Posted by ketchupqueen (Member # 6877) on :
 
Bummer, Paul.

This is the first year we don't get EIC since the year after we got married. That's actually a good thing.
 

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Posted by Goody Scrivener (Member # 6742) on :
 
I just finally got my W-2 today. I know from prior experience that the numbers on my paychecks don't exactly match the boxes on the W-2 because of various pre-tax deductions, so I had to wait. I'll run my numbers tonight and see how much of my normal refund I've lost due to unemployment.
 

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Posted by DDDaysh (Member # 9499) on :
 
I know what you mean KQ. I still got ECI this year, but unless something changes, I won't next year. As sad as that is, in most ways it's good.

Still, I was glad to have it this year. I've already spent my refund on a lawyer (they're EXPENSIVE!).
 

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Posted by rivka (Member # 4859) on :
 

quote:

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Originally posted by Paul Goldner:
i need to send out threatening letters. I am missing a w-2 form.

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quote:

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Originally posted by AvidReader:
I did the taxes today, and I must say, I like them better since I got married. Hubby doesn't claim any deductions on his W2 and overpays all year to get a nice refund. (I tried explaining about savings accounts.) I started getting a little back when I opened my IRA.

Filing together, we got back $500 more than we did seperately. It paid for the new bed I bought and will pay for his trip to DragonCon in September. For once, that didn't make me crazy.

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Gee. I wish I could do that. I guess the Prop 8 folks are right... it isn't a rights issue at all.
 

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Posted by Tatiana (Member # 6776) on :
 
I claim zero exemptions and get them to take out extra each paycheck as a form of enforced savings. Once a year I get a bonus (or birthday present) from my Uncle Sam. My saintly brother-in-law buys TurboTax every year and he likes to get the most possible use of it, so he does my taxes, my mom's, and his sister's in addition to their own. I'm supposed to go over there next weekend and be the guinea pig on 2008. I'm excited! Last year it was $8k.

Is it bad if your favorite family members are the ones who aren't blood relatives?
 

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Posted by Valentine014 (Member # 5981) on :
 
I am thrilled to get our refund. We will be paying off our only credit card, which leaves only one car and student loans. Time to start saving for a house!
 

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Posted by rivka (Member # 4859) on :
 
Tatiana, TurboTax is charging a per-return fee this year. Might want to compensate your BIL for that extra cost.
 

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Posted by Tatiana (Member # 6776) on :
 
rivka, thanks for letting me know. He probably never would have mentioned it.
 

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Posted by Paul Goldner (Member # 1910) on :
 
"They have another week. The deadline was extended this year. "

Really? Til when? I looked up the deadline a few weeks ago, and saw that it was feb 2nd. Did this extension happen recently? Or am I totally hallucinating that I actually read what I thought I read?

Sigh. Can't find anything on this online that doesn't say 2/2/09
 

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Posted by andi330 (Member # 8572) on :
 
It was extended to 2/2/09. Usually they have to be out by 1/31.
 

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Posted by rivka (Member # 4859) on :
 
That's odd. I was told it was 2/15 this year. Clearly someone was confused.

. . . and I need to be concerned/annoyed that I haven't gotten mine. gah!

Tatiana, my dad does all us kids' taxes (and the grandkids) with his copy of TurboTax too. He just warned me the other day.
 

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Posted by scholarette (Member # 11540) on :
 
But for simple returns turbo tax is free online anyway. Tatiana, how about just setting your bank to automatically deduct money and put it into a savings account? Then you get the interest too.
 

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Posted by andi330 (Member # 8572) on :
 
One of the guys at work asked me if I knew anything about taxes recently. My response was, "Yes. You go buy TurboTax and answer all of its questions. Then you hit submit."

I could probably figure out the forms without TurboTax, but this is easier.
 

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Posted by Godric 2.0 (Member # 11443) on :
 
I'm getting over $4k this year. That will be going toward the down payment on our house... Woohoo!
 

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Posted by advice for robots (Member # 2544) on :
 
Why not keep your return as close to 0 as possible and invest your money throughout the year instead of loaning it interest-free to Uncle Sam?

That's the wisdom I've always heard, anyway. Is there a good reason not to do it that way?
 

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Posted by katharina (Member # 827) on :
 
Nope, except that it takes more energy of the delayed-gratification and setting-things-up kind.

I can't file my taxes until 1) I get a statement I haven't recieved yet, and 2) Congress makes a final vote on the stimulus housing/bill, and 3) I buy a house. I might be pushing it to the limit this year, which disturbs me, because I usually file in early February.
 

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Posted by Paul Goldner (Member # 1910) on :
 
Depends on your spending habits.
 

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Posted by advice for robots (Member # 2544) on :
 
Don't get me wrong, it's fun to get a big chunk of money at the beginning of every year. I'd rather get a return than discover I owe taxes. No question about that. But it's not a windfall. It's not free money. It's just Uncle Sam giving back some of my money he's been holding.

Having that extra money available to me every month throughout the year, sitting in my money market account and earning some interest, is much more attractive. I can set a goal to save X amount of money through the year and work it into my budget. At the end of the year I have the same amount as a fat tax return, plus the percentage I earned in interest. Granted, it takes some number crunching and certainly demands some "delayed gratification", but I get a better result for the same 12 months as anyone who relies on their tax return.
 

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Posted by katharina (Member # 827) on :
 
That's for sure. I can set it up so my direct deposit is split - some goes into my checking, and the other chunk goes into a savings account at a different bank. I can get to that money, but it is a hassle and takes a couple of days.

I can't believe how much easier it is to save that way. And that's a lot of interest over the course of a year - I would much rather have it than Uncle Sam.
 

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Posted by scifibum (Member # 7625) on :
 
Some families pay negative income taxes (as long as we disregard the social security/medicare stuff). So getting a return isn't necessarily a sign of having lent money to the government.

For the others...some people don't have (or don't think they have, or don't want to try to have) the restraint to leave money in a savings account instead of in the government's pocket.

For my part, I try not to pay income taxes that will just get refunded, but I get a percentage of my income from bonuses and stock compensation, and income tax is withheld at a high rate from those payments, so I always have a refund coming even though I didn't pay much on every paycheck.
 

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Posted by advice for robots (Member # 2544) on :
 
Right--it's hard to nail a $0 tax return, and it's much more pleasant to be on the positive side than the negative. But relying on that return as a savings plan, using it for "big purchases" when it comes every year, or (heaven forbid) planning to use it as a bailout so you can put more on credit during the year, is much less financially sound practice.
 

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Posted by rivka (Member # 4859) on :
 

quote:

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Originally posted by scholarette:
But for simple returns turbo tax is free online anyway.

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quote:

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Originally posted by advice for robots:
Why not keep your return as close to 0 as possible and invest your money throughout the year instead of loaning it interest-free to Uncle Sam?

That's the wisdom I've always heard, anyway. Is there a good reason not to do it that way?

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quote:

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Originally posted by advice for robots:
Why not keep your return as close to 0 as possible and invest your money throughout the year instead of loaning it interest-free to Uncle Sam?

That's the wisdom I've always heard, anyway. Is there a good reason not to do it that way?

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quote:

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Originally posted by scholarette:
But for simple returns turbo tax is free online anyway. Tatiana, how about just setting your bank to automatically deduct money and put it into a savings account? Then you get the interest too.

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quote:

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Originally posted by rivka:

quote:

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Originally posted by scholarette:
But for simple returns turbo tax is free online anyway.

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Many of us don't qualify for a 1040EZ or 1040A. Anyone who owns a house, owns a business (including one-person businesses), has itemized deductions, makes more than a certain amount, or files as head of household must file a 1040. Which TurboTax charges for.

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Actually the first e-file is free. If you are filing more than one return, you can file additional for $9.95 each. Which is still cheaper than buying 10 copies of TurboTax.
 

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Posted by Goody Scrivener (Member # 6742) on :
 
I finally got my missing W-2 on Tuesday 2/10. I refuse to believe that it takes the post office eight days to get a letter from downtown Chicago to the near west suburbs. And there was no date on the postmark. I've been out of that place for four months and they're still messing with me.

Anyway, the return is filed and I'm actually getting a bigger refund than last year because I now qualify for head of household instead of married separate so I get a larger standard deduction. Yay!
 

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Posted by ketchupqueen (Member # 6877) on :
 
Tatiana, what about 6 or 12 month CDs? Then YOU get the interest on it instead of the gov't having use of it, but it ties up the money...
 

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Posted by lobo (Member # 1761) on :
 
It seems most people are getting a refund (including me). I wonder if it is intentionallly set up that way so that we are happy to get a refund and don't think about how much we actually paid in taxes...?
 

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Posted by scholarette (Member # 11540) on :
 
I get large refunds, but that is from the whole negative income tax thing. Turbo tax was free for me and I do the 1040. This year it did not mention it was only free for people under a certain income level like it did last year.
 

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Posted by fugu13 (Member # 2859) on :
 
lobo: it is a combination of a complicated tax code (and complicated work patterns) with many people not filling out their exemptions correctly.
 

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Posted by Paul Goldner (Member # 1910) on :
 
last year, my refund was 1 dollar. I owed the state 2 dollars.

Apparently, my district was on top of withholdings
 

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Posted by BlackBlade (Member # 8376) on :
 
I will never forget to write down my AGI or Pin # from now on. Waiting for 20 minutes on hold with the IRS while trying to look for jobs and do data entry at the same time is a nightmare.
 

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Posted by Lisa (Member # 8384) on :
 

quote:

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Originally posted by lobo:
It seems most people are getting a refund (including me). I wonder if it is intentionallly set up that way so that we are happy to get a refund and don't think about how much we actually paid in taxes...?

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quote:

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Originally posted by ketchupqueen:
Tatiana, what about 6 or 12 month CDs? Then YOU get the interest on it instead of the gov't having use of it, but it ties up the money...

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quote:

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Originally posted by Lisa:

quote:

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Originally posted by lobo:
It seems most people are getting a refund (including me). I wonder if it is intentionallly set up that way so that we are happy to get a refund and don't think about how much we actually paid in taxes...?

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That's actually the purpose of withholding. They know that if we were forced to write a check each year for the tax burden, there'd be open rebellion. If it also included the hidden taxes in the prices of the things we buy (which comes from the taxes on the manufacturer) and the hidden tax of inflated money supply, there'd be blood in the streets.

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Lots of people, myself included, don't have our taxes withheld. In fact, since we have to pay quarterly estimated taxes, we actually write four checks a year. Somehow, we manage not to riot in the streets or foment revolution against the government every three months.
 

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Posted by lobo (Member # 1761) on :
 
So people that are not paying taxes are getting a tax refund? Or are you talking about welfare cases?
 

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Posted by fugu13 (Member # 2859) on :
 
lobo: yes, that's what a negative income tax is. It is a way of transferring money to the poor. Think of it as a welfare program (and one of the better ones, since it keeps distortions relatively minimal).
 

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Posted by Samprimary (Member # 8561) on :
 

quote:

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Originally posted by Lisa:
They know that if we were forced to write a check each year for the tax burden, there'd be open rebellion. If it also included the hidden taxes in the prices of the things we buy (which comes from the taxes on the manufacturer) and the hidden tax of inflated money supply, there'd be blood in the streets.

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quote:

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This year I really need my house painted on the outside but that will probably have to wait.

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You know, you DO have another adult living with you. Buy some exterior paint and drop the cans in his room as a hint.
 

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Posted by ambyr (Member # 7616) on :
 

quote:

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Originally posted by Tarrsk:
Lots of people, myself included, don't have our taxes withheld. In fact, since we have to pay quarterly estimated taxes, we actually write four checks a year. Somehow, we manage not to riot in the streets or foment revolution against the government every three months.

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If it was every three months, I wouldn't mind. I have occasionally considered rioting over the current 2 month/3 month/4 month/3 month schedule. Who the heck decided that made sense? Something regular would be so much easier to remember.
 

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Posted by fugu13 (Member # 2859) on :
 
Tatiana: If you get around $8k back this year, you've left more like $100 to $175 on the table (and that's at the abysmal interest rates, recently):

Basically, put money for six months into a high-yield savings account; you can easily get one that gets 2.5% even now, and twelve months ago no problem. At six months (> $30 interest), dump the money into a six month CD -- six months ago, six month CDs had an average yield of about 3.2%, so you could have easily gotten 3.5%, maybe 4%. That's about $70, plus another $30-ish from the stuff you're still depositing in the savings account.

That's not an optimal plan, but it is a very simple one, and would have gotten you an additional $130. Last time you left more like $300 to $400 on the table (there were some very nice CD rates).
 

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Posted by Lisa (Member # 8384) on :
 

quote:

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Originally posted by Samprimary:

quote:

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Originally posted by Lisa:
They know that if we were forced to write a check each year for the tax burden, there'd be open rebellion. If it also included the hidden taxes in the prices of the things we buy (which comes from the taxes on the manufacturer) and the hidden tax of inflated money supply, there'd be blood in the streets.

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So, do you actually believe this?

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Yes. Most Jatraqueros are unrepresentative of the general population.
 

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Posted by Mucus (Member # 9735) on :
 
In the Canadian tax system, both the self-employed and the retired living off of their own savings/RRIF have to manually send in cheques for taxes. I'll keep an eye out for rebellion.

Also, if like me you have a tax refund coming and you were going to invest that in the stock market in pretty much any form (rather than cash), you can thank the government for accidentally saving you from a roughly 20% loss rather than be worried about losing out on interest which is taxable at your marginal tax rate anyways

Glass half full *shrug*
 

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Posted by scifibum (Member # 7625) on :
 

quote:

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Originally posted by lobo:
So people that are not paying taxes are getting a tax refund? Or are you talking about welfare cases?

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quote:

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Originally posted by Lisa:
[QUOTE]Yes. Most Jatraqueros are unrepresentative of the general population.

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quote:

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Originally posted by scholarette:
Turbo tax was free for me and I do the 1040. This year it did not mention it was only free for people under a certain income level like it did last year.

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