No more refund for me...

[Deleted]

At least I think

After 2 years of marriage (3 this coming Augut) I finally decided to change both W4 and we will turn them in this Monday.

I usually just use the excuse that the 2-3K refund may not be worth changing the form but today I had to accept the fact that it made no sense to be paying other debts at 6-9% interest while giving the IRS an interest free loan.

So using www.paycheckcity.com/, it seems by changing our allowances from 0 to 2 I will be able to
-> get more money in my paycheck
-> increase my wife 401K to 25% from 20% and her net income will remain the same.

I can use some extra money to put towards our debt and extra towards our retirement (yes 5% might not sound like alot but it is a start )

[❤ mollymouser ❤]

Can you double-check your numbers on the IRS website, too? (I know I'd doublecheck the numbers SOMEWHERE, but that's just me)

[Deleted]

Apr 3, 2011 0:42:00 GMT -5 ❤ mollymouser ❤ said:

Can you double-check your numbers on the IRS website, too? (I know I'd doublecheck the numbers SOMEWHERE, but that's just me)

Yep I did double check on the IRS website here: www.irs.gov/individuals/page/0,,id=14806,00.html

From what I see I will get close: between owing 100 or being owed 100.

But will double check every quarter or so to make sure

[8 Bit WWBG]

For me, there was no way I was not going to get a refund, since we cleaned house BIG time and had thousands of dollars in non-monetary charitable donations. I never cared about the whole interest free loan thing because in the past, it was much safer to let the government hold it than try to keep it ourselves. Now that DF is much more mature about that sort of thing, I think I can switch over. 5 years ago, that extra money each paycheck would have been spent on garbage.

[Deleted]

Apr 3, 2011 8:33:19 GMT -5 8 Bit WWBG said:

For me, there was no way I was not going to get a refund, since we cleaned house BIG time and had thousands of dollars in non-monetary charitable donations. I never cared about the whole interest free loan thing because in the past, it was much safer to let the government hold it than try to keep it ourselves. Now that DF is much more mature about that sort of thing, I think I can switch over. 5 years ago, that extra money each paycheck would have been spent on garbage.

Wow, I think my wife have a lost lost sister and it is your DF. Seriously!

This is one reason why I rather get the refund to because in the past I would just have it deposited into our money market or like this say some into each ROTH IRA.

But now she is somewhat on board and I have more control of the finances so I am not to worried. Also, most of the increase in her paycheck is going toward a 401K

[dividend]

The first tax return after getting a real person job sucked. No more free money. It was like a big fat welcome to the many ways in which the progressive tax code screws the higher income earners to reward those who make less. This year, I owe 12% on the money I inherited from my grandmother on top of that. I'm sure my starving artist brother will end up with a fat refund since he made like $12k last year. He probably won't even say thank you. Well, you're welcome brother, from someone who pays more in taxes than you earn. By all means, enjoy your check! Perhaps use it to buy a third big screen TV.

[Deleted]

Ok dividend... No more free money would suggest you got some at some point? And the 12% tax on inheritance... that was state i'm assuming? (12% on 'free money') ...does your brother have kids?

[TD2K]

This year, I owe 12% on the money I inherited from my grandmother on top of that.


Why is that being taxed? Inheritances are not considered income. Was it from a retirement account or something that now is having unpaid taxes 'recaptured'?

ETA, just realized that could be a state inheritance tax with its own rules.

[phil5185]

This year, I owe 12% on the money I inherited from my grandmother on top of that.

The poster may live in a state that has the estate "pickup tax" - you must pay tax on the portion of the estate that the Federal Govt exempts.