| Posted By |
Message |
| Pages: 1 [2] |
jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
|
why is our tax refund always less???
This year we're getting back about $4500 less than we did the years prior. DH was so upset but then I reminded him with adjusted our withholdings last year so we just got it in our checks vs. the end of year.
You can't really compare people's tax situations. Some people have lots of deductions, throw lots of money into 401ks, retirement plans, etc. maybe withhold extra during the year. There are a million different variances.
Every situation is different. I have friends who make really nice salaries and get $$$ back but they claim 0 and have properties and kids and get slammed with taxes each paycheck.
To each his own. I just adjusted our withholding again to claim less so we can get more back next year. Honestly yes it's an interest free loan but I'd rather get it back in a lump sum at the end of the year.
|
Posted 2/8/18 3:04 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
blu6385
Member since 5/08 8351 total posts
Name:
|
Re: why is our tax refund always less???
Posted by MrsT809
Posted by blu6385
Are you sure you are in the same tax bracket. Oddly enough someone told me their family members always owe yet they apparently take out the highest they can. I don't get how its possible they have I think 5 or 6 kids own a house etc. I told her to tell them to get a new accountant!
Do they own a business or work for commission? My parents are realtors so they pay taxes quarterly bc they don't get a paycheck to deduct from.
I don't see how anyone can compare refunds. There are tons of variables not related to shady accountants.
no they are not. And who knows if they actually take out the highest you can. I guess its possible to claim 0 and still owe but I find it strange. It wouldn't surprise me that in the end they really don't claim 0 though my friend insisted she asked them and they did
I also agree you can't really compare. Though I would love to some times to understand how some people manage to get the amount they do get back 
Message edited 2/8/2018 3:15:07 PM.
|
| Posted 2/8/18 3:14 PM |
| |
|
BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
|
Re: why is our tax refund always less???
Posted by blu6385
Posted by MrsT809
Posted by blu6385
Are you sure you are in the same tax bracket. Oddly enough someone told me their family members always owe yet they apparently take out the highest they can. I don't get how its possible they have I think 5 or 6 kids own a house etc. I told her to tell them to get a new accountant!
Do they own a business or work for commission? My parents are realtors so they pay taxes quarterly bc they don't get a paycheck to deduct from.
I don't see how anyone can compare refunds. There are tons of variables not related to shady accountants.
no they are not. And who knows if they actually take out the highest you can. I guess its possible to claim 0 and still owe but I find it strange. It wouldn't surprise me that in the end they really don't claim 0 though my friend insisted she asked them and they did
I also agree you can't really compare. Though I would love to some times to understand how some people manage to get the amount they do get back
I wouldn't trust third party info
My sister who lives in another state is the working poor, she works full time in a daycare and makes slightly above minimum wage. She pays zero federal and state income taxes, and gets back about $10,000 (I just did her taxes). She gets the earned income credit, which credits people who work and typically have children, and earn a certain amount of money. I did read that this type of credit is going away starting with 2108 though.
|
| Posted 2/8/18 3:22 PM |
| |
|
ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
|
Re: why is our tax refund always less???
I despise the "you are giving the government an interest free loan" argument. I hear it from my parents constantly. I don't see it like that, I see it as giving myself a forced savings for big ticket items like summer camp or a vacation or something that I would never consciously save for week after week during the year. And honestly - how much "interest" am I going to earn on this money?! It's a few thousand dollars, and unless you are actually going to put it into the stock market and take your chances (which very few people do with the "extra" money each week) then I don't care about giving such a huge windfall of interest to the government!
|
| Posted 2/8/18 6:49 PM |
| |
|
Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
|
Re: why is our tax refund always less???
Posted by NervousNell
Posted by olive98
We get nothing back but we don't claim 0. I've heard of people getting like 15k back. Crazy. They make less then us. I don't understand either
I think there is always a level of scamming going on too.
When DH was a cop he would itemize deductions and some of the shit his co workers would put down as deductions and the amounts were ridiculous.
They would be getting back crazy amounts, but God forbid they got audited.
I tend to believe this is true in some cases. DH has a co-worker who constantly brags about his shady accountant and how much $$ he gets back in his refund.
I personally would prefer to get what I'm entitled to and be able to sleep at night.
|
| Posted 2/9/18 9:27 AM |
| |
|
NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
|
Re: why is our tax refund always less???
Posted by lisa0807
Posted by EclecticEsq10810
If they are getting huge refunds, they are probably giving the government an interest free loan.
Not very smart IMHO.
totally agree with this. Why should you give the government your money. The best solution at tax time is to pay $0 and receive $0 I would rather have the money during the year. IMHO
This is correct. For obvious reasons you don't want to owe thousands of dollars at the end of the year...because then you have to find thousands of dollars to write the gov't a big check!
But at the same time, if you're getting a tremendous amount back after taxes, then you've overpaid all year long, which is not an ideal scenario either. The money is better in your pocket than the government's.
The only time I've really ever had a large refund was when we had a huge amount of unexpected medical expenses and so we had a lot of deductions that year. Otherwise, your goal is to come as close to breakeven as possible.
|
| Posted 2/9/18 11:01 AM |
| |
|
mrsrainbow
LIF Adult
Member since 1/17 1465 total posts
Name:
|
Re: why is our tax refund always less???
Posted by ChilisWife
I despise the "you are giving the government an interest free loan" argument. I hear it from my parents constantly. I don't see it like that, I see it as giving myself a forced savings for big ticket items like summer camp or a vacation or something that I would never consciously save for week after week during the year. And honestly - how much "interest" am I going to earn on this money?! It's a few thousand dollars, and unless you are actually going to put it into the stock market and take your chances (which very few people do with the "extra" money each week) then I don't care about giving such a huge windfall of interest to the government!
Geez, wer're really missing out on that .54 cents in interest!
|
| Posted 2/9/18 11:59 AM |
| |
|
|
|
Re: why is our tax refund always less???
People get hung up on the size of the refund but your total tax line is what matters. If people get bonuses they usually withhold a bigger percentage so sometimes that contributes to a bigger refund.
|
| Posted 2/9/18 6:25 PM |
| |
|
ChristinaM128
LIF Adult
Member since 8/12 4043 total posts
Name:
Christina
|
Re: why is our tax refund always less???
Posted by ChilisWife
I despise the "you are giving the government an interest free loan" argument. I hear it from my parents constantly. I don't see it like that, I see it as giving myself a forced savings for big ticket items like summer camp or a vacation or something that I would never consciously save for week after week during the year. And honestly - how much "interest" am I going to earn on this money?! It's a few thousand dollars, and unless you are actually going to put it into the stock market and take your chances (which very few people do with the "extra" money each week) then I don't care about giving such a huge windfall of interest to the government!
I agree. We are awful savers and are both educators who do not have options of paychecks or larger lump sums over the summer, so we have a lot in taxes withdrawn over the year, and our tax return is our summer income so to speak.
|
| Posted 2/9/18 9:35 PM |
| |
|
drpepper318
MIR MIR MIR!
Member since 6/07 8274 total posts
Name:
me
|
Re: why is our tax refund always less???
DH & I have always wondered how we always claim 0 & we either need to pay or get almost nothing back every year, while people I know tell me they're getting 10k+ back... I never understood this either! We do turbo tax and I always wonder if I'm doing something wrong!
|
| Posted 2/9/18 10:00 PM |
| |
|
| Pages: 1 [2] |
