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Old February 16th, 2006, 09:27 PM   #1
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Default Stupid taxes, WTF!

Just got done crunching my numbers for our household taxes. We always use HR Block Taxcut (on my PC) Althouh we claim 0 withholdings, we always break even on our annual taxes. For instance, last year we owed the Feds $117 and received $200 from the state. I have NEVER gotten more than $100 back total.

Well this year it looks like we're getting nearly $2500 REFUND. WTF? We did have a second child this year without changing our withholdings, but I can't imagine it would make that much difference. Comparing last year's and this year's figures it looks like those are the only significant differences though.

Can it be so? I'm nervous as hell about suggesting the IRS owes me money. So nervous I'm reluctant to file yet.
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Old February 16th, 2006, 09:30 PM   #2
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I know your getting 1000 per child this year. and claiming 0 all year should make a big difference come the end of the year when you claim the family.
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Old February 16th, 2006, 09:31 PM   #3
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If it makes you feel better you can send the extra $2300 to me. I will make sure it stays safe.
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Old February 16th, 2006, 09:36 PM   #4
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i got $1300 back
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Old February 16th, 2006, 09:43 PM   #5
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Quote:
Originally Posted by amc78cj7
Well this year it looks like we're getting nearly $2500 REFUND.
Congrats! Now that you played the "babies for profit" game, you're ready for the welfare, WIC, and foodstamps challenge! How many quarts of Colt Ice can you buy using WIC stamps before Abdul gets busted by the po-po?
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Old February 16th, 2006, 09:51 PM   #6
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Originally Posted by Miffy
I know your getting 1000 per child this year. and claiming 0 all year should make a big difference come the end of the year when you claim the family.
Man I hope so! Last I paid and got back but broke even. I would love to get something back as I need some Spinner's for the Hummer.:tonka:
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Old February 16th, 2006, 09:56 PM   #7
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Refund.........hahahaha, thats funny
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Old February 16th, 2006, 10:04 PM   #8
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I used to get back over $5k, but I changed that, and got it down to about $1k. I don't know how anybody can end up owing, you do it to your self on your w2 claims.
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Old February 16th, 2006, 10:06 PM   #9
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Quote:
Originally Posted by cornfed
Congrats! Now that you played the "babies for profit" game, you're ready for the welfare, WIC, and foodstamps challenge! How many quarts of Colt Ice can you buy using WIC stamps before Abdul gets busted by the po-po?
Yeah, no shit. I used to work summers at this slum apartment complex in Ypsi where all the crack hoes lived and there were a ton of welfare babies.

Last edited by amc78cj7; February 16th, 2006 at 10:29 PM.
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Old February 16th, 2006, 10:22 PM   #10
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Originally Posted by shawn
I used to get back over $5k, but I changed that, and got it down to about $1k. I don't know how anybody can end up owing, you do it to your self on your w2 claims.
Finacially it makes more sense to owe at the end of the year. Think of it this way. You owe the government a fixed amount of taxes for 2005 whether you pay up front or the following year. You can pay them up-front when the value of the dollar is higher, essentially allowing them to put your money in an interest bearing account instead of you earning the interest. Then they give you back what you over-payed, of coarse the value of the dollar has depreciated at that point and you've lost out on any potential to earn interest. The other option where you pay at the end is sort of like an interest-free loan the government is giving you.

Personally I like to break even though. I hate owing excessive money in one lump sum.

What happened to us this year, if it's accurate, is a fluke. I'll have to adjust my withholdings next year so I break even again.

Last edited by amc78cj7; February 16th, 2006 at 10:30 PM.
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Old February 16th, 2006, 10:23 PM   #11
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Quote:
Originally Posted by shawn
I used to get back over $5k, but I changed that, and got it down to about $1k. I don't know how anybody can end up owing, you do it to your self on your w2 claims.

Unless you get a 1099.
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Old February 17th, 2006, 12:06 AM   #12
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Quote:
Originally Posted by shawn
I used to get back over $5k, but I changed that, and got it down to about $1k. I don't know how anybody can end up owing, you do it to your self on your w2 claims.

Why woulds you change that? This is my 2nd time filing taxes and i hope i can get all the money i paid in.
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Old February 17th, 2006, 12:19 AM   #13
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Quote:
Originally Posted by Stan
Unless you get a 1099.
Yup this is how i get paid and it totally sucks!!! i owe each year i have never got money back.... it would be really nice i hope that my next job isn't 1099
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Old February 17th, 2006, 12:34 AM   #14
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Well I suck at saving money so I usually get back a big refund every year.
this year was about 10k
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Old February 17th, 2006, 01:49 AM   #15
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Quote:
Originally Posted by shawn
I don't know how anybody can end up owing, you do it to your self on your w2 claims.
really, oweing would almost be ideal unless you can't afford to pay in come tax season. That would mean that you have more money throughout the year to use and theoretically invest and capitalize on. The goal is to be as close to zero as possible though so that you aren't giving the Gov a tax free loan. I used to do what Icebreaker88 does and enjoyed getting the refund. but then I got schooled by the taxman when my wife opened her own business (hairstylist).

Anyway, I changed my withholdings right then and at the same time I opened a money market and another investment account so that the money I formally paid into the gov went into accounts that acrue interest and dividends. If you think of it that way it makes alot of sense and you still end up having a big payday, except you can cash in on parts of it anytime you want. If your refund is going to be $2400 that's an extra $200 on your pocket every month. If it's going to be really big like icebreakers, say $10,000 that's an extra $830 a month to spend on whatever you want or save. just some pennies to think about.

Last edited by sodapop; February 17th, 2006 at 01:51 AM.
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Old February 17th, 2006, 04:13 AM   #16
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Yup taxes suck.
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Old February 17th, 2006, 06:25 AM   #17
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Quote:
Originally Posted by amc78cj7
Finacially it makes more sense to owe at the end of the year. Think of it this way. You owe the government a fixed amount of taxes for 2005 whether you pay up front or the following year. You can pay them up-front when the value of the dollar is higher, essentially allowing them to put your money in an interest bearing account instead of you earning the interest. Then they give you back what you over-payed, of coarse the value of the dollar has depreciated at that point and you've lost out on any potential to earn interest. The other option where you pay at the end is sort of like an interest-free loan the government is giving you.

Personally I like to break even though. I hate owing excessive money in one lump sum.

What happened to us this year, if it's accurate, is a fluke. I'll have to adjust my withholdings next year so I break even again.
Technically it isn't the value of the dollar that changes and causes you to lose money. It is the time value of money you have lost. If you over-pay, you are giving the government a tax and interest free loan. If you owe them, then you should invest roughly the amount you underpay and earn the interest yourself. Then cash it out and send them the principal and pocket the interest(minus the taxes you pay on the interest earned, etc...)

I hate taxes. Add in a 1099, unemployment compensation, a Schedule A, C, and D. Home office deductions, schedule 179 deductions, etc... I paid my CPA $400 to do my taxes last year. But, I also had a refund of about $12k too. First year business start up deductions and credits added up WAY more than I expected. This year will be worse after getting married, and trying to figure out both of our information. I've spent literally 25+ hours on them already before I can even take them to the CPA.
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Old February 17th, 2006, 06:59 AM   #18
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Quote:
Originally Posted by 84Scrambler
Technically it isn't the value of the dollar that changes and causes you to lose money. It is the time value of money you have lost. If you over-pay, you are giving the government a tax and interest free loan. If you owe them, then you should invest roughly the amount you underpay and earn the interest yourself. Then cash it out and send them the principal and pocket the interest(minus the taxes you pay on the interest earned, etc...)
Yes, reread my post. Its a lose lose or win win situation depending on how you plan it. It is both the potential interest the money can be earning plus the depreciating value of the dollar. Trust me on the later part. There are many people who make 99% of their monthly purchases via credit card, then pay them off at the end of each month based on the logic that "the dollar is worth more at the beginning of the month than 30 days later". Based on the rule of 72 (if you're an investor), the dollar will be worth $0.50 about every 18 years at a rate of 4% depreciation.
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Old February 17th, 2006, 07:02 AM   #19
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I have always gotten cash back... this year is no different
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Old February 17th, 2006, 07:12 AM   #20
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fortunatly my parents take care of it for me...im pretty surprised actually they usually make us do all that kind of stuff for ourselves. the disadvantage is that i dont see any money that comes back if i get it. i think my parents keep it...buti guess its worth everything they do for us.

but i know i would hate taxes, i hate accounting, yet i kind of want to work a term in the finacial department...
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