Saddly Let Down This Tax Season.

Let It Fall · #1 01-24-2010, 11:29 PM

So Last year I worked for about half of the year and made around 35,000 I got back a grand total of 2000$ This year for some reason I figured I would be gettting back more... Boy was I mistaken..

I was taxed upon 56,000.. Federal income tax 7,600$ Federal Tax Return. 144$ ... I GOT MORE BACK FROM THE STATE! 455$

Needless to say Im pretty pissed, been looking forward to a good little bit this year..

Should I just go ahead and file through turbo tax [which is where I got this ammount from along with H&R BLOCK ONLINE]

Or should I take it to a professional? I really don't have any writeoffs. I claim myself, and have no home. Sadly Im lost when it comes to taxes which is exactly how they like it.

Jimmy Bones · #2 01-25-2010, 12:17 AM

I went to the block, they always get me the most. We got ~$8000 this year.

And working half the year for 35k... man, I wish I got that much working the WHOLE year. Hell, that's more than I got last year and this combined. :|

Let It Fall · #3 01-25-2010, 12:21 AM

Quote:

Originally Posted by Jimmy Bones

I went to the block, they always get me the most. We got ~$8000 this year.

And working half the year for 35k... man, I wish I got that much working the WHOLE year. Hell, that's more than I got last year and this combined. :|

Dang..

Im pretty lucky I started when I was 18. In Industrial Electrician. Started off at 20$ making 24$ at the moment.

I also made 300$ a week [60$ a day[] for half a year the government doesnt know about but thats only because its perdiem.

I also work 50-70 hours a week....

But sadly I decided I don't want to do this for the rest of my life and am going to college starting this year.. I just turned 21. This is going to suck...

standupright · #4 01-25-2010, 12:24 AM

Quote:

Originally Posted by Let It Fall

So Last year I worked for about half of the year and made around 35,000 I got back a grand total of 2000$ This year for some reason I figured I would be gettting back more... Boy was I mistaken..

I was taxed upon 56,000.. Federal income tax 7,600$ Federal Tax Return. 144$ ... I GOT MORE BACK FROM THE STATE! 455$

Needless to say Im pretty pissed, been looking forward to a good little bit this year..

Should I just go ahead and file through turbo tax [which is where I got this ammount from along with H&R BLOCK ONLINE]

Or should I take it to a professional? I really don't have any writeoffs. I claim myself, and have no home. Sadly Im lost when it comes to taxes which is exactly how they like it.

just look at it this way.....you got more of your money when you earned it as opposed to lending it to the government interest free.

try asking the government for an interest free loan.

Let It Fall · #5 01-25-2010, 12:29 AM

Quote:

Originally Posted by standupright

just look at it this way.....you got more of your money when you earned it as opposed to lending it to the government interest free.

try asking the government for an interest free loan.

Good way to think about it, but i also paid much less taxes..

This year they took 1600 i get back 500

last year they took 8-10k i got back 2000...

punish me for making too much

standupright · #6 01-25-2010, 12:35 AM

Quote:

Originally Posted by Let It Fall

Good way to think about it, but i also paid much less taxes..

This year they took 1600 i get back 500

last year they took 8-10k i got back 2000...

punish me for making too much

that's the way it goes. the more you make, the more they take. couple of years ago when i was doing really well, i was paying about 800 PER WEEK in fed and state income tax. PER WEEK. $800 IN TAXES

Jimmy Bones · #7 01-25-2010, 02:50 AM

The reason why my return is so high is because of the EIC - they wouldn't even take my deductions because it would have done nothing at all to the bottom line. We had 0 tax liability at all. The house as a whole made about $23k, two kids, and some other credits.

Worked out for the best.

coreyfyfe · #8 01-25-2010, 04:23 AM

I was going the smart route this year, claimed single, filed married. Had a good return going until we did the wife's taxes. Cut it down by about two thirds. We don't have much to deduct yet though, not until I finish grad school then I have to start paying my loans which means deductions....

fenderphil · #9 01-25-2010, 04:28 AM

Quote:

Originally Posted by Let It Fall

So Last year I worked for about half of the year and made around 35,000 I got back a grand total of 2000$ This year for some reason I figured I would be gettting back more... Boy was I mistaken..

remember the Obama Stimulus? now youre seeing it. you were taxed less through out the year,which gives you less of a return.

imagine the people that owe taxes every year. i'm sure everyone is scrambling.

RWP · #10 01-25-2010, 05:21 AM

Wait until you see what happens to you NEXT year!

tycobb73 · #11 01-25-2010, 07:26 AM

People seem to think they are entitled to a refund. that's not how it works. A program calculates how much tax you were supposed to pay throughout the year. This is compared to how much you actually paid and you either get a refund or have to pay. If you have no school loans, kids, wife, mortgage you are going to pay. If you want to ensure that you get a refund, claim 0 on your w9. But even then in your situation it won't help much.

Combine that with mine and my wife's school loans, 2 kids, mortgage, home based business, and last year my effective tax rate was less than 1%.

You can take it to a tax professional but if that professional is me I'm just plugging it into Turbotax.

MN_Bass · #12 01-25-2010, 08:31 AM

^---Claim zero, married. Had to pay in last year. Hopefully it changes now I have a mortgage. I never get my hopes up for a return.

Yerf Dog · #13 01-25-2010, 08:38 AM

How much money do you want to loan to the government for free?

standupright · #14 01-25-2010, 08:48 AM

Quote:

Originally Posted by Yerf Dog

How much money do you want to loan to the government for free?

exactly.

Pilgrim · #15 01-25-2010, 08:52 AM

Ideally, you should get NO REFUND. If you get one, it means you were letting the gummint use your money all year without getting paid interest on it.

You should set up your withholding so that you end up owing a bit of tax at the end of the year. That means YOU had the use of all your money instead of making the gumming a year-long interest-free loan.

**Jerose** · #16 01-25-2010, 08:53 AM

Quote:

Originally Posted by Let It Fall

So Last year I worked for about half of the year and made around 35,000 I got back a grand total of 2000$ This year for some reason I figured I would be gettting back more... Boy was I mistaken..

I was taxed upon 56,000.. Federal income tax 7,600$ Federal Tax Return. 144$ ... I GOT MORE BACK FROM THE STATE! 455$

Needless to say Im pretty pissed, been looking forward to a good little bit this year..

Should I just go ahead and file through turbo tax [which is where I got this ammount from along with H&R BLOCK ONLINE]

Or should I take it to a professional? I really don't have any writeoffs. I claim myself, and have no home. Sadly Im lost when it comes to taxes which is exactly how they like it.

I'd recommend using TurboTax if you think you can get a refund that would be greater than paying someone at the Block to do it. Since you don't have a significant amount of itemized deductions (enough to put you over the $5700 mark), you could *probably* pull it off on your own.

You'll really only see a high return if you have low income, a wife, kids under 17, etc like Jimmy Bones did. The EIC is immensely helpful if you qualify for it.

In the next couple weeks I'll be volunteering for the Volunteer Income Tax Assistance (VITA) program, doing tax returns for low income families and students. It's hard to tell people who have to survive on so little that they don't get a refund and actually owe money, but it's a fact of life that not everyone will get a refund. Really, the system works (or is supposed to work) in a way that the people who need the refund most get it. That's why all the benefits go to low income families with wife, kids, mortgage, disabled family members or college students (Lifelong Learning and American Opportunities credits).

Let It Fall · #17 01-25-2010, 10:28 AM

Quote:

Originally Posted by tycobb73

People seem to think they are entitled to a refund. that's not how it works.

no but when you take 15k from me 29% of income and then you hit me with sales tax 10%.

I'm giving 40% of what I make to the governement.

tycobb73 · #18 01-25-2010, 10:34 AM

If you're spending everything you make then you are spending too much. Don't buy anything and the sales tax goes away.

standupright · #19 01-25-2010, 10:34 AM

if you have absolutely nothing to write off, then just grab a 1040EZ form from the post office.

if you think you can write off more than the standard deduction -which for tax year 2009 is $5,700. then use turbo tax (or some other tax software).

otherwise you are wasting your money on their service.

L-A · #20 01-25-2010, 10:56 AM

Quote:

Originally Posted by Let It Fall

no but when you take 15k from me 29% of income and then you hit me with sales tax 10%.

I'm giving 40% of what I make to the governement.

Hey, that's 10% less than what I'm giving right now. And the sales tax used to be 15% on top of that. Now it's "only" 12.5%.

The government gives you all kinds of stuff you feel you have the "right" to have. Usually, with rights come duties. In the case of a citizen like you and me, one important duty is to share part of your revenue with whatever organization keeps your environment, well, organized.

In comparison, I pay more taxes here in Canada, but I have access to a pretty good public health care, and I can regularly watch one of the most badass power tools to exist.

I'm really glad part of my taxes go out to buying huge 14' snow blowers.