Disappointed with my tax refund !

[fourfoxesinpa]

Here's how our family stopped loaning money to Uncle Sam...

We have an automatic withdrawal made from our checking account every pay day to deposit into a money market account. IF there is an emergency, we can access the money by writing a check to ourselves. BUT, the check must e for $250 or more and that amount forces us to think twice before blowing it on something other than what we're really saving for (like Disney). I agree that, if you see the money, it's tempting to spend it. With what we've done, we never see it! It just comes right out of the check, just like it did in the past....only now it works for us.

 

[rsschneck]

Third thing: I understand all of you who prefer Uncle Sam to a savings account, but it isn't just a matter of wasted interest. That extra money might make great Disney vacations, but it really is not working for you in the long term. Of course it is your money and you should use it in the way that works for you. I offer for this your consideration: Reduce your refund by a small portion... maybe 600 to 1200 per year. Use this money to add extra principal to your mortgage. An extra 100.00 per month on a mortgage can cut many loans by years, even in half. Or put the money into a retirement account. Or course there is the perfect answer. Buy more points from DVC!!!

We actually are able to do everything our financial advisor suggests. We both contribute to 401K's, we went to a 15 year mortgage (13 year's left), no car payments, no credit card debt. If we are able to get a cash discount on large purchases then we pay with cash. We still purchase employee stock from DH's company. We put into savings monthly. I guess we could contribute more to IRA's. We feel pretty good about our present situation. So, we do like a large return for our large bills that always creap up the first of the year.

I did get some useful information from a CPA (patient of mine). I asked her about the Tsunami Relief Donation's that are tax deductible for this year's taxes. She said they are on Federal, however our State does not recognize this and we would have to add that donation back onto our State taxes. I figured this was too much work so I will wait to deduct our donation next year. Check what your State allows before adding any Tsunami Relief Donation to this year's itemized deductions on your Federal Return .

 

[Focusdude]

I almost made a mistake (TurboTax caught it for me!) - my mortgage was bought and sold twice in a one year period - one company only held it for two months - and I almost forgot to enter the mortgage interest from that company - made a big difference! Also - if you file electronically - you get your refund so fast!

 

[G00fyDad]

I filed Thursday and got it back on Friday.

 

[georgina]

I did get some useful information from a CPA (patient of mine). I asked her about the Tsunami Relief Donation's that are tax deductible for this year's taxes. She said they are on Federal, however our State does not recognize this and we would have to add that donation back onto our State taxes. I figured this was too much work so I will wait to deduct our donation next year. Check what your State allows before adding any Tsunami Relief Donation to this year's itemized deductions on your Federal Return .

Wow, Oregon allows you to deduct charitable contributions on your state income taxes?

 

[Mady/Sophiemom]

I filed Thursday and got it back on Friday.

No way. Seriously??? Ours has always taken a couple of weeks.

I would be doing some major happy dancing if I got my refund that quick. I hate having my disney bill hanging over my head, even though I have plenty of time to get my refund and pay it (not due till 3/8)

 

[G00fyDad]

Yep. I usually do our taxes ( for a stupid reason though ) but this year is the first year I did not have to file on my own. We went to H&R Block, walked in, did the taxes, and they called it into some bank in New Hampshire. They took 24 hours to respond and then H&R Block printed the check.

 

[tggrbuny]

The IRS will get a refund to you in 10 days to 2 weeks if you file on line and ask for direct deposit. Anything faster than that is call a Refund Anticpation Loan (RAL).

RALs are from one of three banks, depending on your major tax preparer, loaning you your own refund. The fees are huge. Most people don't see the annual costs because many time the bank gets it's payback (your refund) from the IRS in 10 days. These companies have NO ability to call the IRS and check on anything nor does the preparer for your return. They simply wait for the direct deposit

The horror stories are many. Families that counted their child that someone else had claimed, only one claim per kid electronically. After that, the return has to be processed manually. That can take 6 to 8 weeks. In the mean time, your account is raking up triple digit interest, which the bank will bill you for. Sometimes the return is wrong because of preparer error or miscommunication and the refund is a lot less than the expected and the bank will bill you for the difference etc.

I took this from a major preparer's site and removed their name:

Qualified XXXX customers can get a Money Now loan and receive an immediate advance against their federal Refund Anticipation Loan (RAL) proceeds. This product is offered to new and returning XXXX customers who qualify and apply for a RAL, and file their federal tax returns electronically. All bank fees and other charges are deducted from the loan proceeds, so no payment is required up front.

Paying to borrow you own money is something I have strong feelings about, sorry if it sounds like a lecture: wasn't meant to be one. For everyone who has a great story about being happy with their RAL, I can tell you ten of those who felt it was nightmare. There are currently congressmen looking into legally regulating this part of the system.

Of course I have a lopsided view of the world anyways. NO ONE ever calls me at work to say they are having a great day and they would be happy to pay the outstanding taxes!

 

[CajunDixie]

Yep. I usually do our taxes ( for a stupid reason though ) but this year is the first year I did not have to file on my own. We went to H&R Block, walked in, did the taxes, and they called it into some bank in New Hampshire. They took 24 hours to respond and then H&R Block printed the check.

You don't actually have your full refund you have your refund minus $$$! So not only did you have to pay H&R Block but you paid extra out of your refund to pay the fees for a Rapid Refund. Granted you most likely did not have to pay H&R Block up front because they took it out of your refund in addition to the fees but you lost a large amount of money doing it that way. You really should try one of the tax softwares (like TaxCut or TurboTax) next year and save yourself some money.
Just wait until all the non-approving peeps of large refunds read your post.

 

[Mady/Sophiemom]

Oh Duh. I wasn't thinking about rapid refund. I don't go for that. I can wait a few weeks.

 

[Lisa loves Pooh]

I'm a tax accountant, so I'll add my two cents:

Not exactly. If the child was 16 for at least 6 months out of the year then you can claim them. If they were 16 for less then you cannot.

Not True! For the Child Tax Credit ($1000): Your child must be under age 17 at the end of 2004. If your child turns 17 on 12/31/04 - too sad for you.

There is a difference in claiming your child as a dependent and qualifying for the tax credit. It can be confusing - but not to the IRS (of course). Don't fill out your return claiming the $1,000 when you don't really get it - you'll be disappointed when Uncle Sam corrects you!

Makes sense--b/c you claimed your child on the tax year they were born in that first year--December 31st of whatever year that was....you get the same credits as anybody else (for children born the first year that child tax credits started).

Those with children born on January 1st at midnight--have to wait until the following tax year before they get to claim their child.

 

[Lisa loves Pooh]

Okay infamous tax thread.

We JUST NOW noticed that our paycheck has been WRONG for all of 2004.

Hubby worked in Maryland for 1 month.....but got taxed on all 12 months--and we are still being taxed.

First off: How do we fix that--b/c that means our W-2's are incorrect as well.

And we are still being taxed this nonsense. Idiot company--they said they'd take care of it. No wonder we have been feeling this stinking pinch all freaking year long--I cannot believe we didn't notice. Aaaacckckkkkkk.

Posting a new thread as well just in case.

HELP!!!

 

[CajunDixie]

Just did our taxes and we are getting $1489. less than last year. Seems DH made more money this year but his employer took out less taxes! And using our HSA (Health Savings Account) to pay dentist and doctor bills means we have to pay tax on that total amount also! Just another reason for me to hate the HSA!!!!! DH needs to have a talk with his employer about the HSA since it's like receiving less benefits now than when he started 11 years ago. Since we pay the insurance premiums ourselves we also have $267 less a month. I really don't understand that since in the past his employer took out our insurance costs before taxes.

 

[Sunbeamblue2002]

Ok really have to chime in here. Yes rapid refund dose take lots of money but sometimes its worth it. The first yr I went with an independent agent that file for me only to find out aprox two week later that My ex had filed also although he had no right due to being major in arears and no support for the yr filing. Well that was a major mess and I had no idea when I was getting my money. The long distance bill was bigger than normal. Well when H&R block did it w/ RAL we found out right away that it had happened again. Filled out a few simple forms and send it off to IRS and viola got my money. Sometimes peace ofmind is worth a few hundred $$ plus cheaper than a lawer who wants at least 1500 for them to look at the case. Sometimes a persons situation deams a little scarafice. But yes its alot of money just for them to do your taxs and the loan on top of it. But hey sometimes you have to do it.

 

[Mom2Ben02]

I was reading in all of the post quietly, was going to keep keep quiet: After all you were all getting the rules right after a few posts.

Suddenly I felt like I wasn't being a good board member. So hear it goes: I work at Internal Revenue. (pLease don't hate me, I am in the fix problem area!)

ONE ITSY BITSY QUESTION, pretty please!

My sister is 24, turned 24 on Aug 23rd. Made $5400, f/t in grad school. Does not make enough to get lifetime credit. Can my parents still claim her? She lives with them.