Tax Refund

[idnative1948]

Yet, another DINK here also. We keep tweaking our witholding so it is usually pretty close to a wash. Uncle Sam isn't going to be using our money if we can help it.

 

[npaden]

No refund here. I'm doing my best to help pay those child tax credits for everyone else. I have a dependent child but make to much to get a credit for him. I did take advantage of the energy efficiency tax credit this year so that helps a little. Hard to complain though, I've been very blessed financially.

P.S. - I'm a CPA but don't do any taxes other than my own personal return. I'm all for a flat tax!

 

[npaden]

P.S. - If you really want to get frustrated start researching the AMT tax issue. Thankfully it got extended this year, but a lot of what I would consider middle class folks would get hammered even worse if they didn't keep extending the AMT patch.

 

[thecrittergitter]

Person has three kids. Works part-time, gets by on that and some public assistance. Has three dependents on the tax return. Gross wage is $18,000. Federal and state withholding is $0, as the tax liability is $0.

Refund, with earned income credit ($5,344) and refundable child tax credit ($3,000) will be $8,544.

No tax paid, but a $8,544 tax refund. Maybe that is not huge, but it is a common example.

I would not trade places with them, even for their refund.

This example is why no one wants to get rid of the complicated tax code we deal with. In 1996, the Federal welfare system was overhauled by adding a lot of additional credits to the tax code that previously were part of the Federal welfare system.

Whether good, or not, the example happens very often, and is the reason many people do not want to see simplification of the tax code. Eliminating all credits and deductions, and going to something closer to a flat tax would be great for this country, but with so many people in the scenario explained above, it ain't happening in my lifetime.

Good example, i would give you another very aggrevating example whith my wifes sisters but all it would do would infuriate me to the point that i would break my keyboard. Has 5 kids, 3-4 different dads, doesn't work at all, on welfare, yet gets a big tax refund check every year.......just awesome when someone who doesn't even pay taxes gets a f'n refund. She had the nerve at christmas time to laugh and say, why would i get a f'n job, i make more money on welfare and i can sit at home every day..........Ok, bout to break keys, gotta go....

 

[jlmatthew]

The rich should pay more because they have more, the middle class should pay some as well but those under $50,000 should pay something or at the very least not get a "refund" while having no tax liability.

You could have a straight up 10% flat tax and the rich still would pay more than most of us. It always kills me when folks say the rich (now those making over $250,000) need to pay they're fair share when they have a 1/3 of they're pay taken just from the Fed Govt.

The rich pay more than they're fair share IMO.

 

[mixedbag]

I'd rather see EARNED income credit payments before paying people to sit on their a$$ collecting welfare when they could work.These people are at least making an attempt to support themselves.Imagine how much tax dollars would go to that same woman of 3 kids for welfare if she didn't attempt to work.I'm sure it would be alot more then her earned income credit.Not everyone is highly educated, but I'm impressed with the ones that work instead of whine.Unfortunately, most do waste the money they are given at tax time.Some people are brought up to save for tomorrow and others live for today.I'd hate to see what would happen if they took the credits away.I guarantee the welfare payments of your states would go way up.With that would be the taxes within your state going up
I for one am happy for the credits to motivate these people to work

 

[smarandr]

I agree a flat tax would be great, but we will likely never see it because, for better or worse, manipulating the tax code is one of the easiest ways to influence domestic policy.

 

[Big Fin]

I agree a flat tax would be great, but we will likely never see it because, for better or worse, manipulating the tax code is one of the easiest ways to influence domestic policy.

We have a winner.

I know very few CPAs who would not support a flat tax. In fact, when the Alternative Minimum Tax provisions expire, it will be very close to a 28% flat tax for anyone over the AMT exclusion amount. Only thing still deductible will be mortage interest and charitable donations.

Most people don't realize it, but if you make over about $50K, your accountant better be doing a second return for you - the AMT return. If you end up with a higher tax liability under the AMT rules, you pay that, not the regular tax liability.

As one instructor stated, it is funny that they call it the Alternative Minimum Tax, when it is Mandatory and you pay the Maximum between AMT and regular tax.

 

[mdhunter]

I am in the convenience store business and can promise you all those receiving an "earned income credit" pay plenty of taxes. The government has this slick little way of collecting that you or I would go to jail if we tried...LOTTERY

 

[Brudno]

Whats it like to get a tax refund?

I suppose I shouldnt complain, I have my deductions just about right, I only owe $7 this year

Just sucks to see all these people that put nothing in the pot get these huge refunds.

I propose that if you dont pay taxes, you dont get to vote! Thats my idea of a fair tax code!

For me it feels just like paying to much in taxes all year long. I need to get it figured out. Its like a check for my overtime all year long. Since I work 600 hours of OT a year in big spurts here and there I get taxed like crazy that week and get nothing out of my paycheck that week either. I'd love a flat tax or consupmtion tax to end the welfare.

 

[birddog32]

Jeez, guess I learned something today here. I always thought you couldn't get back something you didn't pay in. Wow! I usually pay in at the end of the year. That way I use "their" money for nothing.

 

[mixedbag]

She has to be working somewhere to get a tax refund.If she's just collecting welfare, how would she be eligible for anything??I like the earned income credit because I'd rather see them work then sit at home.Not everybody is highly educated.I'm happy to help out people who try and help themselves.People on welfare;now thats a different subject.Take the earned income credits away and see how many more people your supporting on welfare.I don't agree with a flat tax because then they'll raise taxes on everything else.Helping people who are trying to do for themselves never makes me angry;government waste that my taxes go to does.

 

[sweetnectar]

Anyone have an idea on your real tax rate in economic terms? What I mean is when you add up all the taxes: fuel tax, excise tax, property tax, state and federal income tax, social security, sales tax, hidden taxes, phone bill taxes, internet taxes, vehicle registration, taxes in the form of higher prices you pay for a shoe because of that taxes incurred by the producer, etc. What percentage of your income are you really paying out?

 

[174in]

As much as I pay in to the Feds and state I will take whatever I can get back it still wont cover what I pay in.

 

[Goldtip]

Anyone have an idea on your real tax rate in economic terms? What I mean is when you add up all the taxes: fuel tax, excise tax, property tax, state and federal income tax, social security, sales tax, hidden taxes, phone bill taxes, internet taxes, vehicle registration, taxes in the form of higher prices you pay for a shoe because of that taxes incurred by the producer, etc. What percentage of your income are you really paying out?

Now thats just a depressing thought.........

 

[AZ Ron]

Anyone have an idea on your real tax rate in economic terms? What I mean is when you add up all the taxes: fuel tax, excise tax, property tax, state and federal income tax, social security, sales tax, hidden taxes, phone bill taxes, internet taxes, vehicle registration, taxes in the form of higher prices you pay for a shoe because of that taxes incurred by the producer, etc. What percentage of your income are you really paying out?

I've often wondered about that as well. I probably don't want to know...

Ron

 

[A-con]

Well over 50% for anyone who does pay federal income tax. Probably close to 65-70%, higher for some.

 

[noharleyyet]

Here in Texas there is a fee or a new tax every 15 minutes it seems..but the pols keep right on bragging about 'no state income tax'....what a joke.

 

[sweetnectar]

The scary thing is I think A-con's numbers are pretty close....I think I'm going to be sick...

 

[Zach]

I too wouldn't mind a flat tax. I'm working on getting my deductions adjusted to not give the government a free loan.

The rich should pay more because they have more, the middle class should pay some as well but those under $50,000 should pay something or at the very least not get a "refund" while having no tax liability.

Exxon-Mobil and Goldman Sachs et. al. should also not have a $0 tax liability as well they sould be paying their share as well.

Nemont

Huh? That sounds like the cry of the Democratic party.

I don't know about Goldman, but I'm pretty sure Exxon payed a pretty big amount in taxes.