tax refund so low this year?

[tink_n_pooh]

I'm just hoping and praying that we can figure out a way to OWE less than what TurboTax and HR block online are saying

 

[Golf4food]

I just hope to OWE less than $500.

Making Work Pay - yep, we're all paying now, sho' nuff.

 

[huckster]

our house is paid off are kids are grown we pay proerty taxes twice a year and we pay income tax ..
only hubby worked last year , hope we still dont have to pay .. a refund is just all a dream of the past now

 

[OhMari]

Not true.

The tables were adjusted along with your withholding.

But...

The tax cut was 'per couple'.

So if you both are working and the withholding was adjusted for both working parties then not enough was withheld.

This has been well publized since the tax break was official.

I don't think it was "that" well publized. But this isn't a debate board, just my opinion. I think, most thought we were going to get that "tax break", that wasn't going to adjust our taxes, like 2 years ago, when we received over $1,000 to stimulate the economy. They were just giving us our money, that we earned, back to us, whether we owed it, or would have gotten it back as a tax refund.

And, the tax table has not changed back, so if you need to adjust your W-4's, do so now.

Personally, I set aside the extra money in my savings account. We will be paying back in, what the government thought we should be getting.

I wanted to wait and see/and will adjust our W-4's soon.

 

[Poohbear123]

I don't think it was "that" well publized. But this isn't a debate board, just my opinion. I think, most thought we were going to get that "tax break", that wasn't going to adjust our taxes, like 2 years ago, when we received over $1,000 to stimulate the economy. They were just giving us our money, that we earned, back to us, whether we owed it, or would have gotten it back as a tax refund.

And, the tax table has not changed back, so if you need to adjust your W-4's, do so now.

Personally, I set aside the extra money in my savings account. We will be paying back in, what the government thought we should be getting.

I wanted to wait and see/and will adjust our W-4's soon.

I was also told to adjust my W4's also, so I will be doing that.

 

[mill4023]

Our federal refund is almost the same as last year, while state is a couple hundred less.
But our return is quite a bit different, so that doesn't really say much.

Our income was about 25% higher in 2009 than in 2008 and part of that was a bonus that was twice as much as the previous year. Bonuses are taxed at the IRS supplemental rate, so I guess that's why we ended up with a higher total witholding, even with less being taken out of each check.

 

[Carly_Roach]

So I guess what happens is this: those of us making the average salary or less for the average American ($50K or less) will be breaking even or getting about the same amount of money back.

Those of us making more than the average salary for the average American should have adjusted our withholding when this came out earlier this year so we wouldn't owe at the end of the year.

Based on this thread, it sounds like there are many DISers who make more than the average salary for the average American. As for us, we planned accordingly and have money built up just in case we owe. DH hasn't done the taxes yet, but I'm not especially worried.

 

[DancingBear]

Just to be clear here, there was an actual tax credit given last year, not just an adjustment of the withholding tables:

In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.

This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.

Note:

The Making Work Pay tax credit, normally a maximum of $400 for working individuals and $800 for working married couples, is reduced by the amount of any Economic Recovery Payment ($250 per eligible recipient of Social Security, Supplemental Security Income, Railroad Retirement or Veteran's benefits) or Special Credit for Certain Government Retirees ($250 per eligible federal or state retiree) that you receive. If you are affected by this reduction, you should review your withholding to ensure that sufficient funds have been withheld to meet your tax obligation.

To get that credit into the hands of taxpayers earlier (as part of economic stimulus), the withholding tables were adjusted.

However, some people may find that the changes built into the withholding tables result in less tax being withheld than they prefer.

If you're not eligible for the Making Work Pay tax credit, withholding changes could mean a smaller refund next spring. A limited number of people, including those who usually receive very small refunds, could in some situations owe a small amount rather than receiving a refund. Those who should pay particular attention to their withholding include:

Pensioners (see more information under Pensioners, below)
Married couples with two incomes
Individuals with multiple jobs
Dependents
Some Social Security recipients who work
Workers without valid Social Security numbers

For more information, see:
http://www.irs.gov/newsroom/article/0,,id=204447,00.html

 

[wdwfan16]

So I guess what happens is this: those of us making the average salary or less for the average American ($50K or less) will be breaking even or getting about the same amount of money back.

Those of us making more than the average salary for the average American should have adjusted our withholding when this came out earlier this year so we wouldn't owe at the end of the year.

Based on this thread, it sounds like there are many DISers who make more than the average salary for the average American. As for us, we planned accordingly and have money built up just in case we owe. DH hasn't done the taxes yet, but I'm not especially worried.

This is not really accurate.

If you were a dual income family then each company gave you the extra money. So got twice what you were suppose to and even an average DISer could have to pay under those conditions.

 

[ead79]

Yikes! I hope we still get a good refund. Both DH and I work, but we both claim 0 dependents, so hopefully that will help some.

 

[jme829]

We got about $700 more than last year and I know something was less with my one son since he turned 17 last year (crazy if you ask me since he still has another year of hight school)

My state refund is unusually high averages $120-$140 and this yeahs its $700

yeah, we normally get $200-300 back from state, but this year it is $1200 that we'll get from state (fed is also a couple thousand more than we normally get). but not complaining!!!


No job changes, pay changes or any of that it was all pretty much the same as last year with the exception that we itemized for the first time ever because our mortgage interest was finally higher than the standard deduction..Guess that made a huge difference for us! The making work pay credit didn't hurtt us one bit.

 

[mom2austin]

I don't understand your position.

You were aware of this change last year and got upset over it, but took no action to minimize it's effect. All you had to do is increase your withholding slightly and it would be as if 'Making Work Pay' was never passed. Instead, you are shocked that your refund is less.

The only person you have to blame is yourself.

Whoa! I'm not screaming about anything. I said many people were upset when this came out, not ME. I'm self-employed, so there was nothing extra taken out of anything of mine.
There are people on here asking why their refunds were less. I told them why.
My return is not affected, as we always owe (again, I'm self-employed).

 

[surfergirl602]

On a happier note: I checked the irs where's my refund link a few days ago and it said feb. 5. I checked it again today, and its moved up to jan 29th! Woo hoo!

 

[ColinCodyMom]

I'm expecting quite a bit more this year for some reason. I used turbotax and am wondering if the IRS flags taxes not done by professionals? They accepted it right away and now it is being processed. Is there any reason to worry since I have always gone to H and R block and paid way too much to have them do the same thing turbotax does. I guess that makes me nervous. Federal was more and state was less.

 

[wdwfan16]

I'm expecting quite a bit more this year for some reason. I used turbotax and am wondering if the IRS flags taxes not done by professionals? They accepted it right away and now it is being processed. Is there any reason to worry since I have always gone to H and R block and paid way too much to have them do the same thing turbotax does. I guess that makes me nervous. Federal was more and state was less.

You have nothing to worry about.

 

[DancingBear]

You have nothing to worry about.

Unless you were employed by the World Bank and neglected to include that income on your return because TurboTax didn't ask you for it.

 

[wvjules]

On a happier note: I checked the irs where's my refund link a few days ago and it said feb. 5. I checked it again today, and its moved up to jan 29th! Woo hoo!

Same here. The published list of scheduled refunds had me getting my deposit on Feb 5, but yesterday on the "where's my refund" page it said I should get it on Jan 29.

It is already listed as a pending direct deposit on my Navy Federal account.

 

[ColinCodyMom]

Unless you were employed by the World Bank and neglected to include that income on your return because TurboTax didn't ask you for it.

Definitely not employed by the World Bank...

 

[sbell111]

Whoa! I'm not screaming about anything. I said many people were upset when this came out, not ME. I'm self-employed, so there was nothing extra taken out of anything of mine.
There are people on here asking why their refunds were less. I told them why.
My return is not affected, as we always owe (again, I'm self-employed).

I didn't say you were screaming, you kind of did. When you stated that "many of us" were screaming, I naturally assumed that "you" were a subset of 'us'. Otherwise, you would have posted something like "Many people were screaming" or "Some people were screaming".

Still, those screamers could have simply adjusted their withholding slightly, couldn't they?

 

[LisaNJ25]

Same here. The published list of scheduled refunds had me getting my deposit on Feb 5, but yesterday on the "where's my refund" page it said I should get it on Jan 29.

It is already listed as a pending direct deposit on my Navy Federal account.

What date was your return accepted?