I'm one of the idiots that withholds too much during the year and gives the government an interest-free loan, but it's nice to get a refund come springtime.
Got a nice refund this year, thanks to our 2 little tax deductions born in August. I used to do my own taxes, but it's getting complicated nowadays with kids, 2 incomes, music income and associated deductions, rental property and associated mortgage/repair costs, deductions etc. Now I pay a family friend CPA to do them for us. I filed over a month ago and started getting nervous because I haven't received our refund yet. I always get a little nervous about getting audited because I am very liberal with writing things off for my band income... But I just checked the IRS website and it said my direct deposit is scheduled for Friday. Whew!
Got $44. Don't know how I got so little. Single male who earned 11.50/hour for 90% of the year. My girlfriend got $500. She made ~10.00/hour. I am confuse
bleh this is actually true as income tax must be paid as you receive income, not after. irs.gov says the ceiling is generally $1,000. After that, most taxpayers will get penalized.
YAY! I got $14 back! YAY! Minus the $9.95 for the e-File...? $4 rich! YAY! :grin: Oh, you poor, poor, POOR man. There. You got the attention you needed. Happy? ... and you're wondering why you're single?
Easy way around this. No withholding until December 31st. On 12/31/11 withhold your tax due for the year.
Studies show that is how people prefer it. With interest rates as low as they are right now, creating savings by having extra withheld is not a bad idea, since it forces you to save. I do taxes for a living, and I withhold, despite actually having a negative effective rate. I usually have my return finished in January, but because of Congress dragging their feet, and then the Georgia Congress dragging their feet to accept the changes of Congress hasn't always allowed me to file immediately when I'm ready.
I'm assuming you did not itemize your returns at those income levels. You either are withholding at different rates OR you forgot one of your deductions/credits. You probably took the standard deduction but forgot to take your personal exemption. I also think you most likely should be able to take the earned income credit, which is payable too, not just a deduction. I'm thinking you messed something up. You can file an amended return if you figure it out.
You can do that the first year, but after that, the government knows your "estimated tax rate". If they audited you doing that and it hit their thresholds, they'd nail you.
No they wouldn't. You can only do it through withholding, but it will absolutely hold up every time. It is one of the most common tax planning techniques I know for S-corp owners.
i work full time, single, fall in the 15% tax bracket after deductions. i don't claim any exemptions. all my taxes are paid with every paycheck.
I went up in to a higher tax bracket but was surprised to get a large return. The real bonus was the "other" check I got for $1500 for voting for Obama. It was a pleasant surprise.
