What will u do with ur tax return money?

[TGilb2007]

Originally Posted by GyrlSpeedRT

Don't forget that we should all get a little extra something depending on what Congress can agree on. So far it seems like the highest amount is $800 for individuals and $1600 for couples. This will be in addition to what you're supposed to receive and will come in check form. I also believe they send them out going by your last name. When they did this before I was supposed to get $200 but since I owed that year, I only got $80...

really??? an extra $800 would be awesome.... since I gotta put a deposit down on a new apt. Hmm....

[EvlEgl]

I got close to a grand back last year, I think it was just shy of it Like 965 or something like that??

Who knows anyway having kids is baller you get mad money back from that. They also are costly to raise nowadays but hey thats what starting a family is all about right?

[2drStunner]

I hoping to by some 22's for the Edge! Ballin lol

[240sxDann]

hopefully I'll get at least a LITTLE bit back and put it towards a car

[alwaysinboost]

If you get money back at the end of the year you are doing it wrong, basically you are letting the government have an interest free loan.

Some people think "woo hoo, free money", but its not, its YOUR money they are returning, not theirs. Personally I'd rather have that money in an account earning interest for a year then let the government "hold on to it" interest free.

[240sxDann]

yea but can you do anything about it?

[EvlEgl]

Not really, They gpvernment will always take out taxes, There's diff ways to claim yourself on your paychecks 0,1 Married single blah blah blah but no matter what you still have to do your taxes at the end of the year.

I claim 0 on my checks which takes out more but you get more back, but I've known people who claim 1 had to owe money at the end of the year and I'm not a fan of paying the government more than I already do.

[NOPSTNS]

Originally Posted by alwaysinboost

If you get money back at the end of the year you are doing it wrong, basically you are letting the government have an interest free loan.

Some people think "woo hoo, free money", but its not, its YOUR money they are returning, not theirs. Personally I'd rather have that money in an account earning interest for a year then let the government "hold on to it" interest free.

i assumed we all knew that already. that it was our own money being handed back. but, there nothing we can do anyway. a few posts down from urs someone said u can claim diff stuff, to lie, like claiming plus 1 and blah blah blah but that clearly isnt right and if ur doing that the truth will catch up to you oneday. if ur single and have no kids u claim 0, thats the right thing to do. evlegl im not pointing fingers at u, u said u claim 0 which is correct for you, dont take what i said the wrong way. im not accusing u of anything just using what u said in a comment thats all...

and since i send my paperwork away to my family's accountant, im ASSUMING hes doing it the legal way, not the way for me to earn the most. bc when the poop hits the fan, im sure itll be on my ass...


congrats to all of us who r gettin money back, heres to one more mod, one more car payment, or maybe just one more tank of gas!!!!!!!!!

[alwaysinboost]

nopstns there is some incorrect info in your post ^^^. I'm not trying to correct you because thats not what this thread is about, but just for those that are interested...

You can claim whatever you want on your W2, be it 0, 1 or 4 it doesn't matter. There is nothing illegal about doing that, so you have nothing to worry about with regard to it 'catching up' with you down the road.

The problem with that however is when you file and what you put down on your w2 doesn't match your deductions you either will owe a lot of money or get a big refund, neither of which is good. Like I said in my first post you want to break even, maybe owe a couple bucks if you're really good.

Also, you shouldn't just "trust" your accountant to think he is doing the right thing. People do make mistakes. I assume he is prepairing your taxes and sending them to you for signature, by you signing off you are agreeing to what he has prepaired on your behalf. I know most people just look at the bottom line and see how much they get or how much they owe but if you get audited for incorrect info or omitting something its your ass thats on the line, not theirs. Granted a good tax accountant will stand by their work and defend you if that happens. But even though he prepaired them for you its still your problem financially, unfortunatly ignorance is not an excuse for breaking the law. I've already been through an IRS audit so I know what I'm talking about, trust me its not something you want to be a part of.

BTW: I'm an accountant, have been for about 8 years now, and I have a CPA do my taxes for me too.

[EvlEgl]

As always in boost said you can claim whatever, If your single with no kids as I know alot of friends who are a few of them actually claim 1, Which is themselves, while still being legal. It takes out less taxes from your paychecks but like I said, a few of them also had to owe some money when they did there tax returns, which depending on the amount may not be that bad but I still dont like giving more money away then I already do.

I however claim 0, And get more back when I do my taxes...But next year will most likely be a diff story since i'll probably be married!!

[NOPSTNS]

i had no idea fellas, good info!

he sent me the papers today and i signed them and will be mailing them tonight...

[WhiteXFire]

As alwaysinboost already partially explained, you can adjust your withholding through a W-4 many times throughout a year. The "single-0" or "single-2" has nothing to do with the actual taxes you owe at the end of the year, it's merely a system used to approximate exactly what your tax liability will be so that the correct amount is withheld from your paycheck. It becomes much more complex when you have interest or dividend income, multiple jobs, or 1099 income. No matter what you do, the tax you owe at the end of the year is a simple percentage from a set of brackets calculated from your taxable income (your total gross income minus all applicable allowances, deductions, credits, etc).

The key is to adjust your W-4 and the personal allowances claimed whenever necessary to make sure your "estimates" and in turn your withholding is accurate and matches the tax liability you owe at the end of the year. The problem is that most of the general public doesn't understand this and in turn thinks refunds are a good thing.

[Roadkilled75]

^exactly. I nominate myself for closest to breaking even. $4 refund last year

[TROLL]

ahhh reading this whole thread i was about to post that i guess i'm the only one who pays during tax season, but the thread took a turn.

i dont let the gov't hold any extra money at all... f that, i'll invest it myself through the year instead of letting them sit on it. at the end of the year i'd much rather pay than get paid. this way its kind of like getting an interest free loan... yeah, not so bad.

[WhiteXFire]

Originally Posted by TROLL

ahhh reading this whole thread i was about to post that i guess i'm the only one who pays during tax season, but the thread took a turn.

i dont let the gov't hold any extra money at all... f that, i'll invest it myself through the year instead of letting them sit on it. at the end of the year i'd much rather pay than get paid. this way its kind of like getting an interest free loan... yeah, not so bad.

Do you make estimated payments throughout the year? If you don't, you also have to pay extra penalties, etc.

http://www.irs.gov/taxtopics/tc306.html

[Scapegoat]

Originally Posted by WhiteXFire

As alwaysinboost already partially explained, you can adjust your withholding through a W-4 many times throughout a year. The "single-0" or "single-2" has nothing to do with the actual taxes you owe at the end of the year, it's merely a system used to approximate exactly what your tax liability will be so that the correct amount is withheld from your paycheck. It becomes much more complex when you have interest or dividend income, multiple jobs, or 1099 income. No matter what you do, the tax you owe at the end of the year is a simple percentage from a set of brackets calculated from your taxable income (your total gross income minus all applicable allowances, deductions, credits, etc).

The key is to adjust your W-4 and the personal allowances claimed whenever necessary to make sure your "estimates" and in turn your withholding is accurate and matches the tax liability you owe at the end of the year. The problem is that most of the general public doesn't understand this and in turn thinks refunds are a good thing.

I have no idea what you're talking about, but it sounds like a good thing

[TROLL]

Originally Posted by WhiteXFire

Do you make estimated payments throughout the year? If you don't, you also have to pay extra penalties, etc.

umm, i have a good accountant, thats all i can tell you at the present time. i'll ask him though, but what questions should i be asking?

[WhiteXFire]

Originally Posted by TROLL

umm, i have a good accountant, thats all i can tell you at the present time. i'll ask him though, but what questions should i be asking?

Well I don't know your exact situation, and I only know what I've picked up around the office as I don't work on the tax law part directly, but if you don't pay enough throughout the year you can be subject to an underpayment penalty. Read the link I added, it has a good description.

And FYI for anyone else, I am in no way an expert on the subject, but my client for work over the last year and a half is the biggest retail tax preparer in the US, and I help make sure their applications work correctly. If anyone has specific questions, you can PM me and I *might* be able to get you some free advice.

[turbo4g63]

i just did my tax refund forms online...i'm getting back $1010. I'm gonna get playstation 3 and put the rest in my savings acct.

[marshallpre1]

Probably just throwing it into savings (I hope all of it) and/or a valentine one and/or new tires and/or ps3... God I might use it all up in one weekend...