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

[msmayor]

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.

I'm pretty certain that the folks who receive refundable credits - amounts in excess of what they paid in - would GLADLY accept a higher salary and pay income taxes than be in the income situation they are in right now. It IS a refund - a refund of a credit they are fully and legally entitled to take.

If you don't like refundable credits, then lobby your lawmakers about it.

I don't begrudge any taxpayer the ability to get and/or retain as much money as they can as long as they are following the current laws and regulations in place.

 

[Marionnette]

I'm pretty certain that the folks who receive refundable credits - amounts in excess of what they paid in - would GLADLY accept a higher salary and pay income taxes than be in the income situation they are in right now. It IS a refund - a refund of a credit they are fully and legally entitled to take.

If you don't like refundable credits, then lobby your lawmakers about it.

I don't begrudge any taxpayer the ability to get and/or retain as much money as they can as long as they are following the current laws and regulations in place.

Thats a weak excuse to take money from one sector of society and give it to another. Redefining the meaning of words to suit an adgenda has been a longstanding tactic by both sides. What the heck does "refund of a credit" mean? Please. Thats just doublespeak. And yes, I do lobby my congress critters with regard to the tax laws. Thank you for asking.

 

[msmayor]

Thats a weak excuse to take money from one sector of society and give it to another. Redefining the meaning of words to suit an adgenda has been a longstanding tactic by both sides. What the heck does "refund of a credit" mean? Please. Thats just doublespeak. And yes, I do lobby my congress critters with regard to the tax laws. Thank you for asking.

It means that you are entitled to the benefit of the FULL credit amount regardless of taxes paid.

If a taxpayer is entitled to $2,000 worth of Earned Income Tax Credit, it means they are entitled to the FULL amount, not just $1,500 because that's what they paid. It means that based on their circumstances, they are entitled to the full credit - and sometimes that means cutting a check for the remainder.

Its very much like a carryforward or carryback credit. Some credit you earn in one tax year but can't fully use (like investment losses). Should you lose the chance to reduce your income just because the loss all happened in one year? No - you get to take those losses against income later on, to fully get 'credit' for them. The only difference is a carryforward credit you just save for a future year. Refundable credit means you get it right away.

 

[snowywhite89]

Are those of us who have children and qualify for the tax credit supposed to not accept the credit? I can't help that my wife and I receive a refund based on our countries tax laws and the fact that it makes me and her some kind of "welfare" recipient is rather harsh. We both have incomes and take care of all of our bills without "welfare". We certainly can't help that when we fill out our tax forms we're given credits for our children.

Some of the comments on here are pretty harsh and shortsighted to say the least...

The tax credit are fine but nobody should have a negative income tax. Getting the credit and paying a negative income tax is welfare.

 

[jekajekalynn]

Well all I can say is the fact I am getting a credit for college tuition that I payed is the only reason according to turbotax calculator is gonna be giving us a reasonable refund. Feel free to pelt me with tomatoes and scream that I dare got this credit and am getting a good refund, but I don't care. lol I'm getting a new couch.

Ohhhh and might I add that I am gonna be sitting by the forums with popcorn when people start posting about getting there refund. lol It's like watching a train wreck.. First you are vicariously happy for those who are getting them, then you get the added excitement of watching wet blankets scorn them for having the audacity to get a refund. People argue, disers get flamed, points are given... Good times...good times...

 

[Marionnette]

It means that you are entitled to the benefit of the FULL credit amount regardless of taxes paid.

If a taxpayer is entitled to $2,000 worth of Earned Income Tax Credit, it means they are entitled to the FULL amount, not just $1,500 because that's what they paid. It means that based on their circumstances, they are entitled to the full credit - and sometimes that means cutting a check for the remainder.

Its very much like a carryforward or carryback credit. Some credit you earn in one tax year but can't fully use (like investment losses). Should you lose the chance to reduce your income just because the loss all happened in one year? No - you get to take those losses against income later on, to fully get 'credit' for them. The only difference is a carryforward credit you just save for a future year. Refundable credit means you get it right away.

edited
not worth points for arguing politics.

 

[Marionnette]

Well all I can say is the fact I am getting a credit for college tuition that I payed is the only reason according to turbotax calculator is gonna be giving us a reasonable refund. Feel free to pelt me with tomatoes and scream that I dare got this credit and am getting a good refund, but I don't care. lol I'm getting a new couch.

Only going to toss tomatoes at you if your getting back more than you paid in. If you are then I have a virtual tomato for you and your new sofa.

 

[2Pirates2Princesses]

......................

 

[LisaNJ25]

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.

I think its silly also.. but what are those of us who get back more that we pay do? Not file?

 

[sorul82?]

http://online.wsj.com/article/SB100...444.html?mod=WSJ_hpp_sections_personalfinance

 

[drinkme]

We never get a refund so it doesn't matter. We're taxed to the gils.

Us too.

 

[LovinPooh]

I have never understood how friends of ours get huge refunds. We always get the same lower amount. Which I am thankful for. Couldnt imagine paying in. This year I am a bit nervous about getting ours back in time. I need mine for my trip. Flame away... but my trip is paid for, and this check is my spending money. If all W-2s have to be out by Jan31st, and I file by Feb 1st, I am pushing it when we leave on Feb 18th

Is there a set rate for the earned income tax credit per child, or is a percentage of some sorts?

 

[dunbarfamily]

I haven't read through everything here, I'll be honest. And this is an honset question, not inteded to get people fired up or throwing tomatoes, though I suspect there's some of that going on!

We get back more than we pay in. What should we do, not file? It is silly to get more back, but I'm not sure what I need to do to prevent that. We have a single income, four children. We don't itemize. We don't have child care or eduactional expenses. We don't qualify for free lunch, reduced lunch, food stamps or welfare or assistance of any kind. We don't NEED any help. My husband makes a decent living and we live as cheap as we can. So, I guess my ultimate question.....HOW do people prevent getting back more than they pay? It seems like its a problem with the tax code, not with how people file. Is that correct?

Interested in honest, thoughtful answers.



Edited to add: And we do not qualify for the EIC.

 

[julirina]

We get back more than we pay in. What should we do, not file? It is silly to get more back, but I'm not sure what I need to do to prevent that. We have a single income, four children. We don't itemize. We don't have child care or eduactional expenses. We don't qualify for free lunch, reduced lunch, food stamps or welfare or assistance of any kind. We don't NEED any help. My husband makes a decent living and we live as cheap as we can. So, I guess my ultimate question.....HOW do people prevent getting back more than they pay? It seems like its a problem with the tax code, not with how people file. Is that correct?

Same EXACT situation here (except only 3 kids...at least until June!). One income, probably on the lower-middle-class end of things, certainly above the poverty line. We don't qualify for any kind of assistance that I'm aware of, nor would we take advantage of it if we did. We live (frugally) within our means.

I'm a Democrat -- I LIKE paying taxes. But year after year we find that we're entitled a refund of all of our tax liability plus additional credits. I resent the implication that this is a "welfare" payment -- I'm sorry that it upsets some of you that the government has chosen to redistribute someone else's wealth in this manner, but until the tax code is changed, we're filing completely legally. Other than applying our refund to future tax payments, there's no option to refuse a refund, and why would we? If the IRS says we're entitled to it, who am I to argue?

 

[Inigo]

The only credit I consider welfare is the Earned Income Credit.

 

[*love*2*shop]

i am thinking you wont get it back in time...even if you file electronically....
and did you see this article- this may help!


Some Taxpayers Must Wait to File Returns By TOM HERMAN
Since most taxpayers get income-tax refunds each year, it's tempting to file as early as possible.

But this year, some would-be early birds will have to wait until mid- to late February.

The problem: congressional procrastination.

Lawmakers waited until last month to make last-minute tax-law changes. The Internal Revenue Service said recently those changes will require the agency to "reprogram its processing systems" for a few provisions that were extended in the law enacted in mid-December.

Who will be affected?

First, the IRS said the delays will affect those who "itemize" their deductions on Schedule A. Itemized deductions include such things as charitable donations, mortgage interest, medical expenses and state and local taxes.

About one-third of all taxpayers typically itemize their deductions each year. Nearly two-thirds take the "standard" deduction.

The delay also will hit taxpayers affected by some recently reinstated deductions. "People claiming any of these three items -- involving the state and local sales tax deduction, higher-education tuition and fees deduction and educator-expenses deduction -- as well as those taxpayers who itemize deductions on Form 1040 Schedule A will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February," the IRS said in its recent statement.

The delay affects both taxpayers who file the old-fashioned paper way as well as those who file electronically.

The IRS said it will post updated information on its website (www.irs.gov). This will include an updated copy of Schedule A and updated state and local sales-tax tables.

"Several other forms used by relatively few taxpayers are also affected by the recent changes, and more details are available" on the IRS site.

IRS Commissioner Doug Shulman says "the majority of taxpayers will be able to fill out their tax returns and file them as they normally do."

This year I am a bit nervous about getting ours back in time. I need mine for my trip. Flame away... but my trip is paid for, and this check is my spending money. If all W-2s have to be out by Jan31st, and I file by Feb 1st, I am pushing it when we leave on Feb 18th

 

[sam_gordon]

I have never understood how friends of ours get huge refunds. We always get the same lower amount. Which I am thankful for. Couldnt imagine paying in. This year I am a bit nervous about getting ours back in time. I need mine for my trip. Flame away... but my trip is paid for, and this check is my spending money. If all W-2s have to be out by Jan31st, and I file by Feb 1st, I am pushing it when we leave on Feb 18th

W2's (and other assorted tax paperwork) needs to be POSTMARKED by 1/31. That doesn't mean you have to have it by 1/31. You might not get it for 4-5 days. HOWEVER, depending on how good your records are and what you need to report, you might be able to get the information online. I've gotten mortgage interest online as well as payroll information.

You also don't say whether you itemize or not. I think if you do, you're SOL since everything I'm hearing is saying those that itemize won't be able to file until mid-February.

We get back more than we pay in. What should we do, not file? It is silly to get more back, but I'm not sure what I need to do to prevent that. We have a single income, four children. We don't itemize. We don't have child care or eduactional expenses. We don't qualify for free lunch, reduced lunch, food stamps or welfare or assistance of any kind. We don't NEED any help. My husband makes a decent living and we live as cheap as we can. So, I guess my ultimate question.....HOW do people prevent getting back more than they pay? It seems like its a problem with the tax code, not with how people file. Is that correct?

The tax code is what determines how much money you owe, after deductions, credits, etc (call this 'x'). You fill out a W4 for each employer. The numbers you put down there determine how much money is kept out of each paycheck (call this total for the year 'y'). So when you do taxes, if x>y you pay. If y>x, you get money back.

To try to even out x & y, change the W4. You can claim more dependents (put on the form you have 5 children instead of 4). That gives you more money in each paycheck, therefore reducing 'y'. Your HR person at your employer might even have a chart that says how much more you'll get in each paycheck if you add a dependent. Then you just do the math.

 

[dunbarfamily]

W2's (and other assorted tax paperwork) needs to be POSTMARKED by 1/31. That doesn't mean you have to have it by 1/31. You might not get it for 4-5 days. HOWEVER, depending on how good your records are and what you need to report, you might be able to get the information online. I've gotten mortgage interest online as well as payroll information.

You also don't say whether you itemize or not. I think if you do, you're SOL since everything I'm hearing is saying those that itemize won't be able to file until mid-February.

The tax code is what determines how much money you owe, after deductions, credits, etc (call this 'x'). You fill out a W4 for each employer. The numbers you put down there determine how much money is kept out of each paycheck (call this total for the year 'y'). So when you do taxes, if x>y you pay. If y>x, you get money back.

To try to even out x & y, change the W4. You can claim more dependents (put on the form you have 5 children instead of 4). That gives you more money in each paycheck, therefore reducing 'y'. Your HR person at your employer might even have a chart that says how much more you'll get in each paycheck if you add a dependent. Then you just do the math.

Right, I understand how that works. If we claim more dependents, Uncle Sam takes out less each check. Easy peesy. If I'm thinking this right though, we'll still end up in the situation where we're paying less tax than what we get back. Right? We'll have less of a refund, since the refund amount we'd normally get would be spread out during the year instead of getting a big refund after we file, but we'd still get back everything we pay in plus more. I think. I don't know. I'm tired. This whole back to school after the holidays has this mama tired today!!

 

[sam_gordon]

Right, I understand how that works. If we claim more dependents, Uncle Sam takes out less each check. Easy peesy. If I'm thinking this right though, we'll still end up in the situation where we're paying less tax than what we get back. Right? We'll have less of a refund, since the refund amount we'd normally get would be spread out during the year instead of getting a big refund after we file, but we'd still get back everything we pay in plus more. I think. I don't know. I'm tired. This whole back to school after the holidays has this mama tired today!!

In theory most everyone owes SOME amount of tax. That amount depends on your income (under a certain amount and you owe $0) & deductions. If you change the W4 at work to get more in each paycheck, yes, you would get less at tax refund time. How much less depends on your tax bracket.

For example, let's say $200 is kept out every month ($100 from every check if you get paid every other week). So you "give" the government $2400 through the year. But, when you do your taxes, it turns out you only owe $1200. So you'd get a check back for $1200 (the difference between what you've paid vs. what you actually owe).

Now, in an ideal world, you can change your W4 so only $100 is kept out every month. At tax time, you still owe the government $1200, but you've paid that much through the year, so you get $0 back, and don't have to pay anything.

However, nothing is that easy. Maybe you can only change your W4 so $1800 is held out. Now you get an extra $50 a month in your paycheck, and only get $600 back at tax time. Or you change your W4 so only $600 is held out. Now you get $150 per month in your check, but now you owe the government $600 at tax time.

Check with your (or DH's) HR department. They should have a chart that shows how adding (or subtracting) a dependent will affect your tax withholding for each check.

 

[Purseval]

I think its silly also.. but what are those of us who get back more that we pay do? Not file?

We get back more than we pay in. What should we do, not file?

I'm a Democrat -- I LIKE paying taxes.

You have always had the option of refusing a tax refund and you have also always had the option of paying more than you owe. Personally I think that rather than just giving money back to the IRS, which would go into the general fund to be spent in any way government deems fit, it is better to use it to retire our massive debt, easing the burden your children and grandchildren will inherit.

http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm

How do you make a contribution to reduce the debt?

There are two ways for you to make a contribution to reduce the debt:

* You can make a contribution online either by credit card, checking or savings account at https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=23779454

* You can write a check payable to the Bureau of the Public Debt, and in the memo section, notate that it's a Gift to reduce the Debt Held by the Public. Mail your check to:

Attn Dept G
Bureau of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188

Edit: Just to put a bit of perspective on how badly in debt we are, if you took everyone on the Forbes list of 400 wealthiest Americans, threw in a few hundred B-listers for good measure and added up everything they own it would come to about 1.7 Trillion dollars. If you took every penny they had, stripped them entirely of all of their assets and applied that money to the debt it wouldn't pay off the money we added to the deficit last year.