topic Re: taxes in Among Friends

taxes

Group 5 minus 1 — Fri, 29 Jan 2016 16:10:45 GMT

I have decided that there are 2 kinds of people paying taxes: Thise who are happy to get a refund and those who think it is poor money management.

Re: taxes

NiteStar — Fri, 29 Jan 2016 16:13:27 GMT

I guess I fall into that first category because I am happy to get a refund.

Re: taxes

Peaches McPhee — Fri, 29 Jan 2016 16:13:34 GMT

I suppose you are right. I understand the allure of a big refund. It feels like free money, but of course it isn't.

The best scenario, to me, is to get as close to a zero as possible -- a small refund or a small payment. One time I had to pay less than $7 - that is as close as I ever got to zero.

Re: taxes

millieshops — Fri, 29 Jan 2016 16:17:23 GMT

I can't say I'm happy paying taxes, but I'd be even more unhappy without big ticket items like Medicare and military and smaller budget items like federal highways and national parks. I would love that all our money is used efficiently and used for things I personally support, but I live in a democracy and people have very different ideas of what is important for government to go and what it's not important for them to do.

By the way, I'd be even more unhappy when I file my taxes if I did get a refund of the average size. It's my money and I like keeping it as I go along instead of "saving" it for a refund. I've always been a good saver. so one of the things I don't want my government to do is to build my bank account with a refund.

Re: taxes

Snowpuppy — Fri, 29 Jan 2016 16:19:14 GMT

Refunds are getting your own money back that they've held for you.

I've stopped getting so much withheld.

Re: taxes

RedTop — Fri, 29 Jan 2016 16:23:23 GMT

I don't care so much about a refund; I just don't want to have to pay more to state or federal!

Re: taxes

Abrowneyegirl — Fri, 29 Jan 2016 16:31:54 GMT

A few years ago we were advised to try to stay as close to $0 as possible due to the rise in ID theft with refunds.

If someone files as you and steals your refund you are tough out of luck as you still also have to file BUT will not get your refund.

The IRS has been VERY slow to move on this as it works out fine for them. If they had to pay the refund twice (once to the thief and once to the rightful taxpayer THEN they would do something about it).

A couple we know are still trying to get their refund from 4 years ago. The IRS claims they paid it to someone else who filed as them before our friends filed. Apparently dealing the IRS is not easy. They only return calls if you owe them money.

I rather keep my money.

Re: taxes

Nightowlz — Fri, 29 Jan 2016 17:38:31 GMT

I would rather get a refund in full the amount of all the money they steal from us. I don't know about you but I'm tired of paying taxes. They need to change it to a set % so everyone pays their fair share instead of those select people that pay it all.

Re: taxes

2blonde — Fri, 29 Jan 2016 17:58:49 GMT

@Group 5 minus 1 Actually, there are 3 kinds of taxpayers.......the 2 you mentioned, and me......I have to pay on April 18.

Re: taxes

Iluvhandbags — Fri, 29 Jan 2016 19:30:16 GMT

@Abrowneyegirl wrote:
A few years ago we were advised to try to stay as close to $0 as possible due to the rise in ID theft with refunds.

If someone files as you and steals your refund you are tough out of luck as you still also have to file BUT will not get your refund.

The IRS has been VERY slow to move on this as it works out fine for them. If they had to pay the refund twice (once to the thief and once to the rightful taxpayer THEN they would do something about it).

A couple we know are still trying to get their refund from 4 years ago. The IRS claims they paid it to someone else who filed as them before our friends filed. Apparently dealing the IRS is not easy. They only return calls if you owe them money.

I rather keep my money.

I had this happen to me last year. I found out when I my tax return was rejected by the IRS for duplicate filing. I called them right away and they had already flagged the other return as it obviously did not match our W2s. A few weeks later, I got a form in the mail saying the return was flagged and to call to verify. I called and explained I was a victim of identity theft and they rejected and stopped the other "refund". The agent thanked me profusely and told me that most people who get those letters never call and they end up paying out lots of fraud claims. So booya to that thief!!! I did get my refund but it took about 4 months. Thankfully, it was a fairly small refund.

This year I will be filing right away. They say the longer you wait to file, the more "exposed" you are to someone else filing with your information.

ETA: I found the IRS agents I dealt with very helpful.....

Re: taxes

GCR18 — Sat, 30 Jan 2016 01:30:11 GMT

I'm in the get refund category and I'm okay with it.

Re: taxes

Financialgrl — Sat, 30 Jan 2016 14:47:23 GMT

I never know whether I am getting a refund, large, small or none at all. I have $ in the stock market outside of a retirement account - I'm not clairvoyant so I never know capital gains or dividends in any given year. My father used to give me the "you using your money throughout the year versus the government having use of your money" speech.

I've used H&R Block's software for years it now gets mailed to me each year, I download it and pay for it online. I efiled my niece's taxes yesterday and there are two prompts that come up that talk about helping prevent theft of your refund. They ask for so many digits of your license and for this year it's optional and up to you as to whether you wish to provide that info. My niece was at work so rather than bother her I efiled hers without that info but I'm wondering since this info is optional this year, if maybe they are planning to make this a requirement in future years. Guessing it's another data point in the database that would need to match up before your taxes are accepted by the IRS. Not sure if others encountered this.

Re: taxes

Chrystaltree2 — Tue, 09 Feb 2016 03:21:08 GMT

I always end up with a Federal refund but most years, I owe the State. Not much, usually $200-$300. So, as long as I end uo with some cash, I'm good.

Re: taxes

this is my nic — Tue, 09 Feb 2016 03:49:27 GMT

We are self employed and send in our taxes quarterly. Then we end up owing when April 15 rolls around. We think we're sending them enough, but it's never sufficient. When you have to write that check every 4 months instead of having it deducted from your paycheck it really shows you just how much you send to the government. The tax system must be simplified!

Re: taxes

CaryH — Tue, 09 Feb 2016 16:18:01 GMT

I understand why people don't like getting refunds and all that. Perhaps they are more money savvy or are a 2 person income home or for many other reasons.

I however am divorced and have to pay alimony to my ex-husband even though he pays me NOTHING for child support. It's a huge mess and I often have little after my paychecks are spent on keeping my sons alive, clothed, fed and housed. And the little bit extra I would have would be gone fast too if I adjusted my withholdings.

I am happy to get a refund as it always helps out more than just a small token amount would every paycheck.

I'm only in the average refund range as I no longer own a home or have investments due to my divorce.

I'm also very happy to pay taxes. That may sound funny to some but I am very thankful for things that my taxes pay for. I am all for social programs to help those who need it, and for the military and the other programs that I and my sons get to either benefit from or know others who do.

However, I do owe state taxes and that always sucks.

Re: taxes

DiAnne — Tue, 09 Feb 2016 17:20:31 GMT

I try to break even and I consider $200 either way even. I am always amazed when I hear people bragging about their refund and saying what they are going to do with it (buy big TV, take vacation). They act as if the money is a lotto win and not theirs to begin with.

Re: taxes

151949 — Tue, 09 Feb 2016 18:37:25 GMT

We actually CHOSE to have money taken from our SS checks even though we don't owe any taxes. When we get our refund we use that money for our property taxes, our insurances and to pay for our yearly camp fee and our trip home expenses. We find it easier to save the money up this way and , honestly, we don't care that the government is getting to use our money temporarily. In the end it is there for us when we need it. if we got it monthly we would just have to put it in the savings account each month anyway and interest rates are so low - what difference does it make? We figure the small amount of interestn we lose is the cost of the convenience of having it taken from our check before we get it, so we never miss it.

Re: taxes

151949 — Tue, 09 Feb 2016 21:41:05 GMT

@DiAnne wrote:
I try to break even and I consider $200 either way even. I am always amazed when I hear people bragging about their refund and saying what they are going to do with it (buy big TV, take vacation). They act as if the money is a lotto win and not theirs to begin with.

My cousin who is very sweet but not too bright was recently lamanting that some people get refunds without ever paying in to the IRS. I explained to her that a refund is just that - they are refunding your overpayment. She did not know that - she honestly thought the government was giving some people a gift and not others,and she thought it was rich people who get all the refunds.

Re: taxes

Mom2Dogs — Wed, 10 Feb 2016 00:31:45 GMT

@this is my nic...DH and I are self employed as well. The 2nd half of 2015 was very slow for us and sending in those quarterly payments was torture epecially the one in January. 2016 does not seem to be picking up, sigh, quarterly's this year should be a little less but unless business picks up we will have to shut our doors.....I am trying not to think about that--reality bites sometimes!

@this is my nic wrote:
We are self employed and send in our taxes quarterly. Then we end up owing when April 15 rolls around. We think we're sending them enough, but it's never sufficient. When you have to write that check every 4 months instead of having it deducted from your paycheck it really shows you just how much you send to the government. The tax system must be simplified!

We sit in our accountant's office for about 1.5 hours while he does our taxes...it's fascinating to watch him, he mumbles, talks to us.....kinda like a mad scientist making it all work, that is a job I would not want.

Re: taxes

CouponQueen — Wed, 10 Feb 2016 17:11:39 GMT

Then we have the LARGE refunds under the Earned Income Credit that amounts to several THOUSAND tax dollars just "credited" to people with lower income and a child..listed as Head of Household..

I do not support this credit..it is a free shopping spree on our tax dollars for many.