What happened to my tx refund

[Helix_FR]

I can just hear it now come April, the thousands complaining about how they once got a refund now either owe money or get very little b/c of Obozo's stimulus package that took less out of each paycheck. Maybe those that voted him in will realize that it ain't no free ride.

[308 at my gate]

When the taxes start taking more of their money it will get their attention.

[dons2346]

The only real way to get someone's attention is to get in their pocketbook.

[ponycar17]

Originally Posted by Helix_FR

I can just hear it now come April, the thousands complaining about how they once got a refund now either owe money or get very little b/c of Obozo's stimulus package that took less out of each paycheck. Maybe those that voted him in will realize that it ain't no free ride.

That's exactly right. Since about $68 per check was withheld less per month, that works out to $816 per year. If you and your spouse were forced automatically by your employer to not withhold the additional $68/month and didn't correct your W4 to withhold extra federal taxes then you'll owe about $832 back to the government by April because the Obama stimulus credit was only $800 for a married couple. You will have withheld $832 too little between the two of you if you file as married and jointly.

[red14]

I never got any money, waaaaahhh, where's mine? Am I the 5% that don't get any back?

[Terry_P]

Did they reduce the withholding tables? I'm trying to understand whats being said?? 2009 or 2010

[ponycar17]

Originally Posted by Terry_P

Did they reduce the withholding tables? I'm trying to understand whats being said?? 2009 or 2010

They didn't reduce the 1040TT tables but did request that employers withhold $68 less per month from everyone's check as a way to get money into the economy more quickly. They provided what I believe was a $400 tax credit per individual earner to go into effect immediately by means of reducing required withholding. The problem is that everyone is going to withhold too little. Effectively, couples who file as married and jointly who both work will withhold around $832 too little since their employers were asked to change their withholding practices to supposedly get those 'stimulus' dollars out there quickly.

Single taxpayers who withhold this $68/month too little could potentially owe $416 to the government since they only get a $400 tax credit.

In reality, some people will receive a lesser refund and some people will owe, just depending on their individual situation. Overall, we just got a short-term loan from the government.

[petesusn]

Wasn't it Biden who said that it's a privilege to pay taxes?

[petesusn]

People tell me "I'm getting $1000.00 back" or 2K or 3k. Whatever the amount. Then I ask them "That's real nice. Now how much did you PAY? As for me, I'm getting $4500 back. But I still had to give them $3000. You're just giving the feds an interest free loan.

[topper]

Perhaps it's about time we all stop paying ILLEGAL income taxes. NOW THAT WOULD GET ATTENTION!

[ponycar17]

Originally Posted by topper

Perhaps it's about time we all stop paying ILLEGAL income taxes. NOW THAT WOULD GET ATTENTION!

Better yet, and 'less' illegal. Start withholding as little as possible throughout the year by raising your dependents to the maximum. They'll soon starve of that monthly income they use to operate on as withholding throughout the year. At the end of the year, pay it all. There are penalties to doing this over more than one year but if enough people did it there would be a clear message sent.

Of course the one major downside to this is that most people do not have the financial discipline to NOT spend the amount that they didn't withhold and need to pay in the following year. Then, they face the wrath of the IRS after April.

[Terry_P]

Just pay what the total tax amounted to in the prior year and you won't face any penalities you may owe money but thats it.

[Bobitis]

Originally Posted by ponycar17

Better yet, and 'less' illegal. Start withholding as little as possible throughout the year by raising your dependents to the maximum. They'll soon starve of that monthly income they use to operate on as withholding throughout the year. At the end of the year, pay it all. There are penalties to doing this over more than one year but if enough people did it there would be a clear message sent.

Of course the one major downside to this is that most people do not have the financial discipline to NOT spend the amount that they didn't withhold and need to pay in the following year. Then, they face the wrath of the IRS after April.

When do the losers/single moms/couch potatoes/dead beat dads/welfair recipients/etc. face the wrath?

Do we take away their benefits? Do we require them to work it off? Is there ANY stipulation for getting sumpin fo nuttin?

Nope!

Middle class all the way baby!

[ponycar17]

Originally Posted by Bobitis

Middle class all the way baby!

Well, yeah... Despite Obama's campaign promises, which are already firewood, the middle class will undoubtedly bear the brunt of ALL this treasonous government's economic policies.

From Foxnews.com today... Health Care Countdown: Senate Bill Could Hit Middle Class Hard

This is exactly what I've been saying about a tax that is passed on to the middle class through taxation of corporations and the health care providers on TFF... Sorry liberals, you're proven wrong yet again through rational economic reasoning.

[bcj1755]

Originally Posted by ponycar17

Well, yeah... Despite Obama's campaign promises, which are already firewood, the middle class will undoubtedly bear the brunt of ALL this treasonous government's economic policies.

From Foxnews.com today... Health Care Countdown: Senate Bill Could Hit Middle Class Hard

This is exactly what I've been saying about a tax that is passed on to the middle class through taxation of corporations and the health care providers on TFF... Sorry liberals, you're proven wrong yet again through rational economic reasoning.

Well, you know liberals don't use reason for anything, right?

[Terry_P]

This taxing the rich is such a myth. If you are really rich then your money is positioned such that the Fed Gov't can't get at a lot of it. The small businessman that makes $200-400K a year is the one getting hammered by it and they will either raise prices or lay off workers. So the mantra of soaking the rich is just another way to crash the economy and make us all dependent on the government.

[petesusn]

Originally Posted by red14

I never got any money, waaaaahhh, where's mine? Am I the 5% that don't get any back?

red, you're just being politically repressed.

[walien]

You're better off having too little taken out. There's a time value to money and you aren't charged interest on a withholding that is too small. It's basically a free loan of money for anywhere from 4.5 months to 16.5 months depending on what paycheck you're looking at.

[bcj1755]

Originally Posted by petesusn

red, you're just being politically repressed.

Help! Help! I'm being repressed!

[ponycar17]

Originally Posted by walien

You're better off having too little taken out. There's a time value to money and you aren't charged interest on a withholding that is too small. It's basically a free loan of money for anywhere from 4.5 months to 16.5 months depending on what paycheck you're looking at.

You're absolutely right, in most situations. A person who is wise in their investing and money management can use their money as a zero-interest loan until tax day of the following year.

The vast majority of people affected by this legislative chicanery have no idea what's coming, are not wise with their money and have likely already spent that extra few bucks in their paycheck... and then some more. If they were already getting back very little, they'll owe this year.

There is a catch to this. If you continue to withhold, over two years I believe, less than 90% of the amount of money you owe to the IRS by year's end then you can be forced to pay estimated withholding and possibly incur fees. If you withheld too little last year this year could accidentally cause you to have to pay estimated taxes. That is, you send the IRS a check for an amount equally divided into the amount of taxes you'll expect to owe for the current year in each quarter.

Personally, I analyze what my income will look like from year to year and my wife and I withhold accordingly. You can use withholding estimators such as http://www.paycheckcity.com along with online tax calculators (or your own wit) to determine what you'll need to withhold given current tax rules. Last year was an odd year and I guessed wrong. This year we should get back $200 if my math is solid, and I believe it is.

You cannot continually withhold too little without repercussions.

[Bobitis]

What's a tax refund?

The fed gives you a refund after collecting interest on YOUR dollar for a year?

Refund my brown hole!

Howsabout they don't collect it to begin with?