Tax confusion

[topher5150]

So I got my taxes done, then compared them to my fiance's. She makes half what I do in a year and yet she is getting double back in returns this year. I also noticed that since I graduate my tax returns have been getting less and less. what the heck is going on

 

[ratdog442]

So I got my taxes done, then compared them to my fiance's. She makes half what I do in a year and yet she is getting double back in returns this year. I also noticed that since I graduate my tax returns have been getting less and less. what the heck is going on

wake up buddy it is the new American order you get paid more to work less...soon you will get paid not to work...oh we already do that...i will be quiet now.

 

[JoshMcMadMac]

So I got my taxes done, then compared them to my fiance's. She makes half what I do in a year and yet she is getting double back in returns this year. I also noticed that since I graduate my tax returns have been getting less and less. what the heck is going on

If you are going to work for a living, you really should take a little time to better understand how taxes work. How much you make does not determine how much your tax refund is...the amount that is withheld from how much you make determines that. A big refund is not a sign that you are doing something right; a $0 balance each year is.

 

[foxpaws]

So I got my taxes done, then compared them to my fiance's. She makes half what I do in a year and yet she is getting double back in returns this year. I also noticed that since I graduate my tax returns have been getting less and less. what the heck is going on

You probably are the one better off - if you have been saving throughout the year.

You should be not getting much if anything back - the government doesn't pay any interest on that money they were 'holding' for your fiance.

So, rather then the 'enforced' US income tax saving plan that your fiance used - she would have been better off claiming fewer deductions and taking that extra money each week and investing/saving it - making money on the money.

Although there are lots of people who just can't do that - it is hard, and not seeing the money at all might be a better option for those who find it difficult to save.

Plus - does she have kids - she might have gotten earned income credit, which is a whole different can of worms.

My accountant and I have a bet every year - if I get back or pay less than $100 dollars at tax time - he gets dinner on my dime - if it is more either way - he pays... smile.

 

[ratdog442]

If you are going to work for a living, you really should take a little time to better understand how taxes work. How much you make does not determine how much your tax refund is...the amount that is withheld from how much you make determines that. A big refund is not a sign that you are doing something right; a $0 balance each year is.

I understand what your saying however in real life situations it is very difficult to save money through out the year, plus at least in my situation, I feel patriotic loaning the G my money throughout the year. Getting that refund check is really nice in one lump sum especially when it begins with a 1 with four digits after it...just my opinion.

 

[JoshMcMadMac]

I understand what your saying however in real life situations it is very difficult to save money through out the year, plus at least in my situation, I feel patriotic loaning the G my money throughout the year. Getting that refund check is really nice in one lump sum especially when it begins with a 1 with four digits after it...just my opinion.

The only thing that makes it difficult in "real life" is the mentality of the person on the receiving end.

You make $1000 a week, and the tax is $200.
You have $300 withheld every week. At the end of the year, you get a $5200 tax refund.
Or, you have $200 withheld every week and drop $100 into a money market account. At the end of the year you get a $0 refund, and have $5200 at your disposal and earning interest.
Better yet, drop that $100 into a 401k or IRA. Now you have as much as $5200 more to deduct, lowering the $200 taxes owed to say $180...so you still get a $520 refund as well as a plan for your retirement.

Say that you are one of the many folks that gets the extra $100 a week and cannot find it possible to save it. I would wager that is typically because there are bills to pay, which otherwise would amount to credit card debt. So, instead of having the "government savings plan" all year that you use to pay off your credit card debt, you pay it off more as you go along and save tons of money on interest! It all boils down to discipline and a little forward thinking.

 

[BlackLS06]

Does your fiance go to school??

Theres education credits that can give an extra $1700 in your pocket.

 

[topher5150]

No she doesn't go to school, but her mother and I are trying to get her to back for something basic so she can get a decent job. To answer everyone's comments none of us have children nor do we claim dependents.