For those of you who use tax $ for trip...

[Muushka]

Good job Purseval! Because we don't have children, needless to say, we always pay, big time.

And while we won't be writing any extra checks back to the IRS because we feel that we have more than paid our share, there are things that we have refused from the government.

For example, my husband was laid off several years ago and he could have had his tuituon paid by (I think it was the state at that time) the government. He chose to pay it himself (or I should say ourselves). It was another 2 years of full time college to change fields, but he didn't think that the government should pay for it.

And this last time when he was laid off, he could have started to collect about 6 weeks earlier than he did (can't remember what the deal was, but he qualified). He chose to wait to begin collecting. And when we went on vacation, he stopped his unemployment checks for the time he was out of town, even though he was technically still looking for a job (internet) he didn't feel right about it.

Very tough times are ahead for this country. I hope that everyone will be accepting when some of the austerity programs are canceled.

In the meantime, our tax dollars have gone for iPads in one of our local school districts.

Indeed, many of the districts are paying for their iPads through federal and other grants, including money from the federal Race to the Top competitive grant program, which Durham, N.C., administrators are using to provide an iPad to every teacher and student at two low-performing schools.

http://www.nytimes.com/2011/01/05/education/05tablets.html?pagewanted=2&src=twr

I read stuff like that and it makes me crazy. I would love an iPad.

 

[Millermom0606]

Can I point out that the reason WE get a refund is b/c my husband is in the Military, and is in a tax free zone..... so I suppose we're bad ppl b/c we end up with a refund, or the EIC b/c his pay is tax free......

 

[Rantybaby]

Now do employers have til Jan31st to get the W-2s out?

Yes!!

 

[Vandercapellen]

I have a question about the delay. I'm not very tax savy, but here goes.

I file using a program like turbo tax. I choose the standard deduction, but I do claim childcare expenses.

Does that put me in the wait for a refund category?

 

[Purseval]

I file using a program like turbo tax. I choose the standard deduction, but I do claim childcare expenses.

Does that put me in the wait for a refund category?

Turbotax will walk you through both scenarios, itemizing and standard deduction, and let you decide which one works better for you. Most of the people getting delayed refunds will be the ones who itemize.

 

[rock*mom]

The refund I get back mainly consist of EIC.....I also fill electronically with Turbo tax and usually get the refund in about 3 weeks from the date my info is accepted by the gov't. I use to do rapid refund many years ago and I NEVER received my money within the rapid refund time frame it always took up too two weeks. For a single parent raising two my refund allows me to take vacas, purchase big ticket items, and splurge on items that would not be considered on my budget throughout the year. It also allows me to give my retired mother extra money to help out with fix-it things around her house

 

[Colleen27]

I have no problem with tax credits for people who actually PAY taxes. I have a BIG problem with people getting back more than they paid in federal income taxes. Thats not a tax refund. A refund implies that you paid something first and then got part of it back. Its income redistribution from the people who actually pay taxes to the people who pay nothing.

Actually, it is still intended as a tax refund - one that offsets payroll taxes rather than strictly income taxes, to compensate for the regressive nature of the FICA tax rate (low-income people pay it on every dollar, while higher earners pay it only on a portion of their earnings). I didn't fully appreciate that myself until we were in the position of writing a check for our self employment taxes - when you're looking at 15% of your annual income owing in April you see exactly what a big bite payroll taxes take out, and just how much that would matter on a low income.

 

[Disneywedding2010]

The only sort of refund I get back as a widow is for school. I recieve a check from the Navy every month (DIC, I believe is the technical term) and its not taxable. However, I still have to file because of my money in my mutual funds and such. Taxes have just gotten more confusing since my husband died so I just let the professionals do it.

 

[Disneywedding2010]

Can I point out that the reason WE get a refund is b/c my husband is in the Military, and is in a tax free zone..... so I suppose we're bad ppl b/c we end up with a refund, or the EIC b/c his pay is tax free......

No, my late husband was Navy and was deployed in O7. We also recieved money because of the tax free zone he was in. Its just the nature of the job.

 

[Millermom0606]

O yea, I know DisWed, but according to some posters 'rules' if you get the EIC you're apparently on welfare and bad ppl (insert eye roll) LOL

 

[Marionnette]

Actually, it is still intended as a tax refund - one that offsets payroll taxes rather than strictly income taxes, to compensate for the regressive nature of the FICA tax rate (low-income people pay it on every dollar, while higher earners pay it only on a portion of their earnings). I didn't fully appreciate that myself until we were in the position of writing a check for our self employment taxes - when you're looking at 15% of your annual income owing in April you see exactly what a big bite payroll taxes take out, and just how much that would matter on a low income.

A. We are self employed and business owners. We know all about payroll taxes and the big bite it takes out of a paycheck. We also have to pay into our employees' fica and unemployment taxes. You are not telling me anything I dont already know.

B. These same people who are getting money back to offset fica taxes now will be drawing on those benefits in their old age (social security & medicare). Their social security benefits (which are based on what they paid into the social security system only) will not be proportionately reduced because they got a credit on their federal income taxes in their youth. That accounting is kept separate.

C. And this is for those people putting words in my mouth...I dont think anyone who gets back more in taxes than they paid in is on welfare or a bad person. Your words not mine. I think it is a form of income redistribution and an entitlement that should be eliminated from the tax code. I can dislike the entitlement without harboring any feelings about the people who use those tax laws to their advantage. I would just prefer that those same people not gripe when business owners use similar tax "loopholes" to their advantage (something I also feel should be eliminated).

 

[snowywhite89]

Actually, it is still intended as a tax refund - one that offsets payroll taxes rather than strictly income taxes, to compensate for the regressive nature of the FICA tax rate (low-income people pay it on every dollar, while higher earners pay it only on a portion of their earnings). I didn't fully appreciate that myself until we were in the position of writing a check for our self employment taxes - when you're looking at 15% of your annual income owing in April you see exactly what a big bite payroll taxes take out, and just how much that would matter on a low income.

You still do not understand the way SS is taxed. I will use normal years not this year where the 6.2% is being lowered to 4.2%. This is most likely only for a year or two and will be back at 6.2%.

That 15% (really 15.3%) you talk about is made up of 4 items. The employer and the employee both pay SS at a rate of 6.2% and medicare at a rate of 1.45%. The 6.2% has a cap which this year is on all income of $106,800. The 1.45% is unlimited.

You paid both since you are both the employer and employee. You get many other tax write-offs being the owner of the business.

The low income person will put in way less than they will receive at retirement time and those cap people will get back way less.

 

[heartofdisney]

The refund I get back mainly consist of EIC.....I also fill electronically with Turbo tax and usually get the refund in about 3 weeks from the date my info is accepted by the gov't. I use to do rapid refund many years ago and I NEVER received my money within the rapid refund time frame it always took up too two weeks. For a single parent raising two my refund allows me to take vacas, purchase big ticket items, and splurge on items that would not be considered on my budget throughout the year. It also allows me to give my retired mother extra money to help out with fix-it things around her house

I have a problem with the EITC when people who don't pay into the system,or don't pay into it as much as they get back ,then take this EITC and go on vacations with this money. Why? Because my husband and I both work,and we always have to pay quite alot into the systrem,and then barely get anything back,sometimes nothing. We definetly can not afford to take vacations very often,and we don't purchase "big ticket items" becauses we have to use any extra money we manage to save to put our daughters through college,since they don't qualify for any sort of student aide.They have to take out student loans for what we can't manage to pay. Meanwhile,my nephew and his girlfriend had a child,but won't get married. She is able to collect money as a single mom and he chooses not to work. They were given the opportunity to go to college and have it paid for,along with a 3000 living stipident each. They got the money,used it to take a Disney vacation,and also to buy other things they wanted.Then they both ended up quitting school anyway and never once have they been asked to pay that money back. That makes my blood boil because both my daughters are good kids and worked hard,as did my husband and me,and they get no help at all to pay for college. Instead,the govt decides to redistribute our money to people who supposedly need it,(which I would have no problem with if they used it wisely) and then some of them end up using it to take vacations that my family can't afford or to spend it on big screen HD tv's or other big ticket items that we have to do without. Like one of my daughters friends husband. Last year he went out and bought himself a gold chain with his bame on,and his wife a pair of gold earrings with thier refund check. How nice for them.That is the crap I am against.