Early Tax season will be a circus of refunds

[hillbillyhunter1]

With all the expanded credits for those at the bottom of the tax spectrum, it's going to be refund-mania.

I've had 5 people come into the office today (ungawdly-early) to do taxes.

Last guy made 16,000.00. One kid. About 1000.00 in withholding.

$5700.00 federal "REFUND".

Slightly shocking.

He was considerably shocked. I'd bet that (if everything else remained static) he got $1500-$1800 more this year then last year based on the same situation.

I gotta get used to looking at much bigger numbers for them folks....and raise my prices some more too.

Back to work

[CalHunter]

Are you saying the feds only withheld $1000 from his paychecks and he then got $5700 back from the feds?

[hillbillyhunter1]

Originally Posted by CalHunter

Are you saying the feds only withheld $1000 from his paychecks and he then got $5700 back from the feds?

Absolutely I am. his withholding may have been $1300.00 as I remember. I was just rounding,...if that offers you any solace...LOL

the phenomenon is known as "refundable tax credits"

Many here may get a couple hundred dollars worth of refundable credit ("make work pay credit" which is new...for example...and is the direct result of the changing of the withholding tables in that stimulus deal...as we discussed this past spring). Some people however, get thousands upon thousands.

Remember, it's a "tax cut"....LOLOLOLOL

I know it's hard to believe.

It's hard for me to believe the rate of accelerated broadening of qualifications to recieve these credits.

This year less will get you more (and substantially more at that) then ever before.

Thank God for people like me who are at least trying to upwardly redistribute these outrageous entitlements through tax preparation fees...lol

[hillbillyhunter1]

Originally Posted by CalHunter

Are you saying the feds only withheld $1000 from his paychecks and he then got $5700 back from the feds?

just your average run-of-the-mill refund there this year. if he'd had two kids, probably been looking at another $2Gs

Luckily, for him, the state of MD (where he resided in 2009) also has refundable tax credits (CA probably does too I'd bet). So he got even more "free money" from the state.

Is it any wonder things seem upside down a lot of the time....it's because they are.

[CalHunter]

I am shocked and disgusted.

[ipscshooter]

I'm disgusted, but not shocked....

I'm gonna take a big hit this year, because my wife earned quite a bit more, but, her withholding was not enough to account for the fact that her earnings are taxed at my rate.

[hillbillyhunter1]

Originally Posted by ipscshooter

I'm disgusted, but not shocked....

I'm gonna take a big hit this year, because my wife earned quite a bit more, but, her withholding was not enough to account for the fact that her earnings are taxed at my rate.

Sounds like she's getting off way too easy. Time for you to go buy a new gun or two.

Or you could divorce her, but still live together. Pay her alimony (which you can deduct at the "top rate") and which she could claim at a lower rate...depending on the amount....................just kidding

[The Rev]

I never get a refund! But then I know why, my money goes to pay for those refunds!

[RLoving1]

Originally Posted by The Rev

I never get a refund! But then I know why, my money goes to pay for those refunds!

I will be in same shape I'm afraid! I'm single make about 70K and have zero deductions this year! Better get good hold of something for this ride!

[ipscshooter]

Originally Posted by hillbillyhunter1

Sounds like she's getting off way too easy. Time for you to go buy a new gun or two.

I got my new 7mm-08 last summer, while on the way home from buying her new furniture for the den. Bought her a new kitchen last fall, so, I think I've already got the "credits" stored up for the next few firearms that I decide I "need"...