TAX RETURNS - Is anyone elses substantially lower then last year?

[69Muscle]

This sucks! Last year Federal I got back $1074, (I've always got over 1g back from federal) and state was $191

This year Federal is $670.00
And State is $16.00


I made more then last year, but other then that nothing has changed, I didn't sell any stocks everything is almost the same as last year. My Tax guy was telling me that Federal is holding more then last year for the returns but giving you more in your weekly checks. I made $851.18 more then last year, that's the only thing that's changed.

Any thoughts? Is yours the same?
I think I'm going to have H&R Block prepare the same tax return as he did and see if there's a difference.

 

[WODIN]

Why do you give the govt an interest free loan for so much?

 

[69Muscle]

I don't think I have a choice.

 

[WODIN]

I don't think I have a choice.

Actually you do. You can request your payroll dept to reduce your withholding by x amount per month and they have to do it.

For instance if you are getting $670 back then tell them to reduce what they're taking out by ($50.00 / (1- tax rate) )

So if your in the 28% bracket then you go 50/(1-.28) = $64.45 grossed up for federal. Then state should just roll through.

 

[69Muscle]

Too much work!

 

[Warik]

You should be happy that you're getting less back.

Think about it.

Let's assume you made $10,000 and are taxed at 15%.

Now let's assume two situations:

1) You get $500 back.

2) You get nothing back.

In case 1, this would most likely mean that the government took too much (15% + $500) and they need to give some back. In case 2, you paid just the right amount (15%) and get nothing back. Why is case 2 better? Because your $500 was sitting in your pocket instead of in the greedy federal government's hands.

Now, if you have to PAY on April 15th like me, it's even better. =)

-Warik

 

[Fonz]

You should be happy that you're getting less back.

Think about it.

Let's assume you made $10,000 and are taxed at 15%.

Now let's assume two situations:

1) You get $500 back.

2) You get nothing back.

In case 1, this would most likely mean that the government took too much (15% + $500) and they need to give some back. In case 2, you paid just the right amount (15%) and get nothing back. Why is case 2 better? Because your $500 was sitting in your pocket instead of in the greedy federal government's hands.

Now, if you have to PAY on April 15th like me, it's even better. =)

-Warik

HEHE Warik.......

I'll call my acountant and get back to you........LOL

Probably ~$5000 or so..

Fonz

 

[Rockafella Skank]

I concur with Warik. (We may not agree on cops, but taxes are a different story!)

Also keep in mind that Dubya sent out checks over the summer. If you got one it will be a hit against your tax return. The money was an advance rebate, not a retroactive rebate.

 

[The Dude]

This sucks! Last year Federal I got back $1074, (I've always got over 1g back from federal) and state was $191

This year Federal is $670.00
And State is $16.00


I made more then last year, but other then that nothing has changed, I didn't sell any stocks everything is almost the same as last year. My Tax guy was telling me that Federal is holding more then last year for the returns but giving you more in your weekly checks. I made $851.18 more then last year, that's the only thing that's changed.

Any thoughts? Is yours the same?
I think I'm going to have H&R Block prepare the same tax return as he did and see if there's a difference.

Mine is about the same. You shouldn't be getting that much back anyhow. You need to change what is withheld. Why let the government hold onto that $1000 or $670 when you can have it and use it. Invest it during that period and let it make money for you instead of giving the government a zero interest loan.

 

[The Dude]

Too much work!

Missed that statement! My God, it's your money and it's too much work?! Shoo...go on, get! Go be slovenly and poor.