Anyone getting a lot less back in taxes?

[Grendalynn]

$17 a week x 4 weeks is $64 a month. That covers two tanks of gas. It's not a life changing amount, but it's better than a sharp poke in the eye, as my mother used to say.

Funny, taxes go down and people hardly notice, but if taxes had gone up by the same amount, people would be screaming bloody murder.

I think if you read this thread a little bit - there are many people posting and saying that they are paying in this year over years past....

 

[Hardy]

We are getting 3000 more than last year. DH took a significant pay cut in a job change so we are making less than we have in years. We get back more than we pay in now...DH also claims zero so we get a big refund, I know....free loan to the government....but that would tend to disappear throughout the year if we didn't do it that way.

 

[kellia]

Hey, I haven't filed yet, but was playing around with some IRS calculators, and came up with a question. My dh was laid off and received unemployment compensation for about 4 months. We qualify for the earned income credit because he did work the other months until we add the amount he received from unemployment to our wages. Then we make too much to claim the credit. I read somewhere that the only income that can be counted for that credit is actual earned income not unemployment. When I did the calculator, two times it came back saying to call an IRS advisor and one time it came back saying we didn't qualify because we made too much. So, does anyone know?

Unemployment counts as income. We've gotten a form from the state (when one of us was laid off) that you have to put in your taxes. It isn't a W-2, called something else. You might not owe much since your income was lower, though, hopefully. Also, there is an option when you sign up for unemployment as to whether or not you want taxes taken out, so maybe he did?

 

[kellia]

Does anyone know if you don't put in SS#'s into Tax Act if it will not calculate your dependents?? I don't like putting all of our info into a site like that, so I put the numbers in correctly, just not all of the names and personal info. While TT said we got back $800, Tax Act said we OWED $4000!!

I think I'm going to just go to the library and get the packet and do it the old fashioned way to see what I get!

 

[LisaNJ25]

Does anyone know if you don't put in SS#'s into Tax Act if it will not calculate your dependents?? I don't like putting all of our info into a site like that, so I put the numbers in correctly, just not all of the names and personal info. While TT said we got back $800, Tax Act said we OWED $4000!!

I think I'm going to just go to the library and get the packet and do it the old fashioned way to see what I get!

I just put random numbers and its fine.

 

[kellia]

I just put random numbers and its fine.

LOL, don't know why I didn't just do that! I added some numbers for all 5 of our SS, and now we "only" owe $200. Whew, at least there wasn't a difference of $5000 between the two programs!!! Now I'll figure out why they are $1000 off.

 

[Cinerbelle]

Well, the increase in income and the loss of that child care deduction could have knocked you into a higher tax bracket, that's one possiblity. Really the only way to know if your taxes truely went up is to figure out you effective tax rate, which is dividing you tax (line 60) by your AGI (line 37) for this year and then compare it to last years.

If you do find it went up, I'd take a look at your AGI and compare it to the tax brackets, again you may find you got bumped up into the next bracket.

Married Filing Jointly brackets:

10% $0 - $16,700
15% $16,701 – $67,900
25% $67,901 – $137,050
28% $137,051 – $208,850
33% $208,851 – $372,950
35% $372,951+

By looking at your brackets, it looks like my husband and I are going to fall down to the 25% bracket since we made less this year (we made $141k last year and $136K this year).... I hope that means we get a refund, I have been stressing about owing!

 

[toddlers_mom]

Unemployment counts as income. We've gotten a form from the state (when one of us was laid off) that you have to put in your taxes. It isn't a W-2, called something else. You might not owe much since your income was lower, though, hopefully. Also, there is an option when you sign up for unemployment as to whether or not you want taxes taken out, so maybe he did?

UI counts as unearned income so it doesn't count towards the EITC.

It's called a 1099-G.

 

[jgates]

We had so many changes in ours this year. $15,000 less OT, $3000 less in Sweeps wins - however lost the 17 year old for her $1000 credit but gained $1200 in add'l property taxes - all so messed up.

Either way we ended up within about $100 of last years refund. I couldn't believe it was that close. We both claim single zero to make a forced savings account which helps insure we get a refund. We had years where we had seasonal unemployment & at that time they didn't even offer to withhold taxes - so I just got into the habit of over withholding during the year.

As others have mentioned - had I received that back on a weekly basis it woudl be out the window............This way we have a nice amount we can do something with.

 

[DISdreamin']

By looking at your brackets, it looks like my husband and I are going to fall down to the 25% bracket since we made less this year (we made $141k last year and $136K this year).... I hope that means we get a refund, I have been stressing about owing!

Nice income! Be terrified if they don't change the AMT exemption for next year, though, with that income.

As someone pointed out earlier in this thread, that AMT can really bite you, and $140K right now seems to be about where it might kick in if my numbers are right. Next year, if the exemption amount for AMT calcs really does go down by some $30K for married/joint, it could mean an extra ~$7500 when calculating the AMT that could push the AMT over what you normally owe. My numbers might be off, but this AMT scares the @#$% out of me.

 

[Cinerbelle]

Nice income! Be terrified if they don't change the AMT exemption for next year, though, with that income.

As someone pointed out earlier in this thread, that AMT can really bite you, and $140K right now seems to be about where it might kick in if my numbers are right. Next year, if the exemption amount for AMT calcs really does go down by some $30K for married/joint, it could mean an extra ~$7500 when calculating the AMT that could push the AMT over what you normally owe. My numbers might be off, but this AMT scares the @#$% out of me.

The income looks good on paper, but we live in a very expensive state... CA.

Thanks, I will keep the AMT thing in mind.

 

[deerhart]

When you find out let me know as we are in the same boat.

Here is another issue...my ex keeps claiming my son before I get to do my taxes. I work at places who always wait til the last second to send out forms. He is done his taxes already again!!!!
So everytime I was getting them done at the tax place online they said that social has been claimed....he gets visitation..I have full custody and have had full custody for years. I have filed ammended returns and spoken to workers at the IRS more times than I can count. Yet he still gets to claim him and I get the screwing.....
what can I do to stop this? They keep saying he will get caught eventually. I tell hi m he is not supposed to do it he says who cares. Basically my son is paying his own child support as i get none the whole year and then they garnish his IRS taxes. Well my thinking is I took care of him , and I should be getting that credit and you should be paying out support form your won darn pocket.
Ranting just irritated now.....sorry....

You should turn in your parenting plan to the IRS showing either that you have primary (or full whatever your state calls it) custody and that NOWHERE in the document does it say Dad gets the deduction OR that somewhere in the document it shows you get the deduction.

Once you have provided that to the IRS, they should flag your and his social so that you are able to take the credit until they are provided a NEW parenting plan. Now you may have to paperfile each year, but you shouldnt' have any more trouble.

I have lots of clients who end up having to do this and after the first year they have no problems. I have also had other attorneys and their clients suddenly become a lot more amenable to settling when I mention that their clients have provided me with tax returns that show they claimed the child against the court order and I ask when to expect the amended return to the IRS (in some cases these are several years old and if they do an amended return they are going to have TONS in penalties and late fees) because I would hate to present this current tax returns into evidence in front of a judge and run the chance that the judge turns someone in for tax fraud (or order the return to be handed over to my client ) ....

 

[deerhart]

We did not change tax brackets, but our effective tax rate calculated as you show went from 7.3% to 9.2%. I don't get it at all! Both years we were in the 25% bracket.

Did the 3% increase through you into AMT? Also, your tax bracket is based on line 43 taxable income, not your AGI

 

[deerhart]

Does anyone know if you don't put in SS#'s into Tax Act if it will not calculate your dependents?? I don't like putting all of our info into a site like that, so I put the numbers in correctly, just not all of the names and personal info. While TT said we got back $800, Tax Act said we OWED $4000!!

I think I'm going to just go to the library and get the packet and do it the old fashioned way to see what I get!

If you DO NOT fill in ssn #'s the softwarre WILL NOT calculate any child deductions INCLUDING dependant deductions, child credit OR child care credit.

SSN #'s are REQUIRED to claim this, thus missing your not allowed to claim.

Also, if you file married filing separately there are a number of deductions you can no longer claim that you can claim filing jointly.

 

[deerhart]

By looking at your brackets, it looks like my husband and I are going to fall down to the 25% bracket since we made less this year (we made $141k last year and $136K this year).... I hope that means we get a refund, I have been stressing about owing!

Your bracket is not total earned income or even adjusted income, it is your taxable income our family's total income is in the 25% bracket (and not barely we were pretty squarely in the middle of it) but our taxable income is in the 15% bracket.

Next year, it is likely that our taxable income will fall into the 25% bracket (its got to go up 7k which is possible, right now I'm on schedule to make about 3k more this year, but it depends on how many bonuses I eek out this year, my boss told me he wants to see my salary with bonuses to be almost equal to what DH and I made combined this last ) which means our tax bill will skyrocket

Last year our effective tax rate was 5.39%, this year it is 2.7%, despite our AGI going up 10k and our taxable income going up 10k. But it was offset by an increase of $1100 in deductions and exemptions and an increase of $3,400 in credits.

Ill be hurting in 10 years when my kids start to fall off my taxes (going to have to find a different right off...)

 

[deerhart]

The income looks good on paper, but we live in a very expensive state... CA.

Thanks, I will keep the AMT thing in mind.

unfortunately taxes don't take COL into account. Your income in CA is equivalent to a 30+% decreased income where I live (depending on the calculator you use and your location in CA).

But COL is one of the factors we have always considered in deciding where to live!

 

[DISdreamin']

The income looks good on paper, but we live in a very expensive state... CA.

Yeah, I know the feeling - we're in NY. Our income in a super-low COL place would be...really nice! Here, me make a good living, but not plush. One reason - our property/school taxes on our home are more than some people pay in income taxes.

 

[minnie1928]

Yeah, I know the feeling - we're in NY. Our income in a super-low COL place would be...really nice! Here, me make a good living, but not plush. One reason - our property/school taxes on our home are more than some people pay in income taxes.

I'm right there with ya! I'm in Northern NJ and it's frightening how much I pay in property/school taxes. It would be nice if AMT was adjusted regionally, so that my "high" income was normalized. Maybe then I wouldn't get stuck paying AMT.

 

[MELISAZACK]

We are having issues with TT this year - at one point in the rtn I was getting back about 2K. which is normal for us.. it ran the error rpt and said to fix a few forms and the next thing I know -- BAM! I owe $200.00 WTH..
This year the only BIG diffrence for us is that my DH is is now getting SSD
he got a back pay for 2008 as well.
other issue is we were awarded ssd in Nov and the whole time and back in the past his work paid him LTD - now we had to pay back the past 2 yrs of that per the policy once we were awarded SSD.. I got a letter stating I am not taxable on the money since we are repaying back the company..
yet I think I am being taxed on it in TT.. any suggestions.???

 

[wdwfan16]

We are having issues with TT this year - at one point in the rtn I was getting back about 2K. which is normal for us.. it ran the error rpt and said to fix a few forms and the next thing I know -- BAM! I owe $200.00 WTH..
This year the only BIG diffrence for us is that my DH is is now getting SSD
he got a back pay for 2008 as well.
other issue is we were awarded ssd in Nov and the whole time and back in the past his work paid him LTD - now we had to pay back the past 2 yrs of that per the policy once we were awarded SSD.. I got a letter stating I am not taxable on the money since we are repaying back the company..
yet I think I am being taxed on it in TT.. any suggestions.???

What I know is that LTD is taxable if you did not pay the premium. So TT is doing that correctly. If you paid 100% of the premiums then LTD is tax-free.

I would think that you would get some time of tax credit for the amount that you paid back in 2009.

I know there are CPSa here. I am sure they will have a better answer.