|
Post by The Walk of the Penguin Mich on Apr 14, 2011 17:10:16 GMT -5
Saw this in the Paper at noon - of the tax returns already processed for 2010, the IRS reported that 87% are getting refunds. Elsewhere it said that the average Federal refund is about $3000.
This info is likely a couple weeks old and it's horribly skewed data. People who are owed money tend to file early. Those who owe, wait until the last minute. Since the last minute's tomorrow, then the data's not an accurate representation of the population as a whole.
Wait until the end of the extension and I suspect that that number will go down considerably.
|
|
|
Post by honeybunny66 on Apr 14, 2011 17:14:54 GMT -5
My family is one of the 87% Phil is talking about. Quiet as it is kept, everyone who receives a tax refund is not eligible for EIC or any other refundable credit some people here like to complain about. We paid out approximately $75,000 (yes I said $75,000 ) and we're getting a refund of $16,000. Yes, we know that we're allowing the government to use our money interest free. However, as I stated before, our family rather overpay and receive a huge refund that be standing on the other side of the equation and owe $60-75 thousand (been there, done that, don't want to do again)
|
|
Sum Dum Gai
Senior Associate
Joined: Aug 15, 2011 15:39:24 GMT -5
Posts: 19,892
|
Post by Sum Dum Gai on Apr 14, 2011 17:21:06 GMT -5
We got like $2,500 back this year. The last couple years we've owed a bit, but this was our first year as homeowners, so we itemized for the first time, and I was way off on how that would affect us. I though I was still going to owe about $300. Guess it's a good thing I never became a CPA.
|
|
constanz22
Senior Member
Joined: Dec 18, 2010 14:32:17 GMT -5
Posts: 4,219
|
Post by constanz22 on Apr 14, 2011 18:26:58 GMT -5
I just mailed my checks yesterday. $990 to Federal and a little over $100 to state. I'd rather owe a bit and have more in my paycheck than get a refund, but, that was a bit much to owe, but, oh well. I'd be happy owing somewhere around $500 in April. Honestly, I thought I'd owe more this year, so, all in all, not terrible.
|
|
Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,082
|
Post by Mardi Gras Audrey on Apr 14, 2011 18:27:30 GMT -5
I just did mine this week. Phil, you will be happy to know that I owed both state and feds ($600 to state and $1900 to feds). I didn't wait until the last minute because I didn't want to forget but the govt didn't get to use my $$ interest free . On the flip side, I got a check for ~$1900 from another govt agency. Can you sign over a check from one agency to another? I was tempted to send it to the IRS just to be a jerk....
|
|
hoops902
Senior Associate
Joined: Dec 22, 2010 13:21:29 GMT -5
Posts: 11,978
|
Post by hoops902 on Apr 14, 2011 18:39:56 GMT -5
$3,000/yr is $250/mo. A passbook savings account at 1% interest compounded monthly would pay $16.29 in interest for the year. Many modest income people use the amount of their tax refund as the budget for a big ticket item they’re going to purchase (vacation, used car, appliances, furniture, etc.) not to add to long term investment accounts. It’s probably worth it to them to forgo the tiny bit of interest in order to have forced savings. These are probably the same people who would be tempted to spend that money on a carton of cigarettes or dinner and a movie every week if they had it in their pocket. They could also use the $250 per month to keep their credit card debt paid off, and/or accelerate any other consumer debt such as auto loans. They could also put the $250 per month into an IRA or Roth. If they "could" do that, then they probably wouldn't have racked up CC debt in the first place spending money they don't have. It's the same reason people hid money in their house so they can get that "surprise" feeling of finding it later. And the reason people save their money in a Christmas Club. It's because they're incapable or unwilling to do it another way. It's probably a huge positive that they get the refund in that the large amount keeps them cognizant of spending it...instead of wasting it away each month on nothing.
|
|
mithrin
Junior Member
Joined: Jan 5, 2011 13:01:56 GMT -5
Posts: 104
|
Post by mithrin on Apr 14, 2011 18:58:09 GMT -5
Saw this in the Paper at noon - of the tax returns already processed for 2010, the IRS reported that 87% are getting refunds. Elsewhere it said that the average Federal refund is about $3000. Baffling - why do 9 out of 10 americans do that? Our Fed tax bill for 2010 was about $15,000 - why would I prepay $18,000 during the year and then wait for $3000 of it to be refunded? (I do the opposite - prepay about $12k and pay the final $3000 now). #1, stupid headline for the paper to print. You can't assume that the % of refunds vs. owe is going to hold steady between now and the end of processing returns this year. #2, why get all up in arms about the 87%? They were owed a refund and filed for it before the deadline. We need the pitchforks and torches for the 13% who owed the IRS money and decided to pay it before it was due...talk about giving the IRS an interest free loan! This year we've already filed because we got a small refund, but when we owe taxes, it's a given that the check gets put in the mail on April 15th and not before.
|
|
doxieluvr
Junior Associate
Joined: Dec 30, 2010 11:28:59 GMT -5
Posts: 5,458
|
Post by doxieluvr on Apr 14, 2011 19:52:16 GMT -5
I am truly beginning to believe that most people don't think of their refund as money they GAVE to the Government only to have it given back to them. I'm beginning to believe that many people think the money they are getting back is actual 'extra money' and not money they didn't already have at one point. I think there's a disconnect for most people between the deductions on their paystub and their refund. I had the 'previlege' of listening to 4 women 'squee' together over their refunds and one even told a tale of how her 'tax preparer' squeezed out alittle extra return for them this year... One of the women seemed to feel cheated (or maybe she was just feeling really special)? because she "couldn't file her taxes until AFTER Feb 14th because she has 'deductions' (um, ok, you've got a house - with a mortgage and property taxes... ) I'm not sure if this was just some form faux emotion to facilitate 'bonding' (like over designer shoes??) or if they really really don't get it. I smiled and nodded alot and tried not to make eye contact -- I would have backed away slowly but it was a dinner get together... Some people do get back more money that than have taken out of their checks. I am in that boat, and I too was disappointed I had to wait until Feb 14th to file to get the money, that was not mine to begin with, deposited to my account. I do understand how taxes work, and our current tax structure benefits us with low incomes and lots of deductions. But do not assume because we get refunds that we do not understand how it works. Thank you to those that pay taxes. Our refund allows us to have modest gifts for the holidays, and this year we were able to pay to have our car repaired and send a huge chunk away to credit cards to lower our debt.
|
|
spartan7886
Familiar Member
Joined: Jan 7, 2011 14:04:22 GMT -5
Posts: 788
|
Post by spartan7886 on Apr 15, 2011 7:53:47 GMT -5
We were among the 87%, but only because I miscalculated the taxes on the Roth conversion when I did our withholding. I was aiming for $200 owed, but got $1000 back.
|
|
|
Post by fuel100 on Apr 15, 2011 8:04:22 GMT -5
I was beginning to think I was the only person in America that had to pay taxes. Everywhere I turn, I hear of someone going on a shopping spree with their tax refund. I sent in my money to the theiving bastards yesterday.
|
|
happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
|
Post by happyscooter on Apr 15, 2011 8:20:01 GMT -5
After paying for the past 3 years, we thought we would be paying again this year. DH retired in the middle of the year, so our income was lower. No pension or SS, just a part time job that didn't pay as well as previous job. So we got a refund. Boy, am I glad we didn't wait until the first of April to do our taxes. I would have been mad at myself!!
|
|
telephus44
Well-Known Member
Joined: Dec 23, 2010 10:20:21 GMT -5
Posts: 1,259
|
Post by telephus44 on Apr 15, 2011 9:15:18 GMT -5
I'd rather break even or owe, but for the past 4-5 years I just haven't had a stable tax situation. I've owed as much as $2700 and received as much as $8000 (that was first-time home buyer credit year). But in the past 5 years we've bought a house, had a baby, DH has switched jobs (three times), we changed our daycare costs significantly, had a period of unemployment - enough things happen that I have a hard time estimating ahead of time, and I'm not enough of a micro-manager to adjust our withholdings every time something tax related happens to us.
On the bright side, we have ALWAYS owed the state, between $50 and $300. So at least I get that right!
|
|
|
Post by robbase on Apr 15, 2011 10:26:17 GMT -5
Also another point....so your preferred alternative would be that everyone owed the gov money at tax time? The same americans that live paycheck to paycheck (mostly) and struggle to pay their bills (albeit this is mostly a self-imposed struggle)?
imagine the state of government finances if this was the case
|
|
Angel!
Senior Associate
Politics Admin
Joined: Dec 20, 2010 11:44:08 GMT -5
Posts: 10,722
|
Post by Angel! on Apr 15, 2011 10:40:55 GMT -5
I am one of the 87%, getting back about $3500. I could change my withholdings & lower my refund amount, but I have not done so for several reasons.
First, my life is really up in the air right now, so I don't really know some of the details of how I will be filing & what credits I may be eligible for come next year, so what I end up owing could vary by several thousand & I really don't want tax time to roll around & realize I owe $2K.
Second, I am living a really tight budget. Actually my current budget has me overspending my income by ~$100 each month. That means I look for every way I can to cut corners & really pay attention to what I spend in order to make ends meet without pulling money out of savings. I get really excited if I manage to cut $20 out of my grocery spending for the week because that helps me make ends meet. I get really excited if I get an expense check for work because those aren't something that I regularly get & can count on, but it helps me fill my budget gap when it happens. If I had a little more coming in, then I would be slightly lazier & the income increase would fill the budget gap & some would get spent on other odds & ends & very little of it would go to savings. So instead of $3500 to put into savings when I get my refund, I likely would end the year with $1500 on savings. You can say that is lack of discipline or a bad budget or whatever, but I know that is the way it would work for me. My lower income & budget forces constant vigilance on my part & that winds up giving me an extra $2K in the bank at the end of the year.
Now if things get worse & I find I am regularly pulling money out of savings, then I will adjust my withholding (and probably lower my HSA contribution as well).
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Apr 15, 2011 10:43:22 GMT -5
Maybe all of us that owe several thousand dollars are waiting until Monday to file. Yep, every single time I have owed, I waited until the last day with filing.
|
|
wvugurl26
Distinguished Associate
Joined: Dec 19, 2010 15:25:30 GMT -5
Posts: 21,704
|
Post by wvugurl26 on Apr 15, 2011 11:58:47 GMT -5
I got $95 back from State and $165 back from Federal. I consider that close enough. I worked 5 months at a job paying $10/hr. Then I had a couple weeks of unemployment before starting my new job. I was honestly figuring on owing. I ended up taking a college course in October that I paid for so I got credit for that and my student loan interest paid was pretty high.
I get the rationale behind it but I got back less than $300. I'm not going to try to mess with that. My income will be much higher this year with working at my job all year and getting a raise mid year. If I were getting thousands back I might try to fix it but its less than $300.
|
|
Deleted
Joined: May 2, 2024 22:21:47 GMT -5
Posts: 0
|
Post by Deleted on Apr 15, 2011 13:32:33 GMT -5
We got $3900 back. Yes I do this intentionally because it would probably just disappear every week otherwise - I don't know why, it just does. Most of this comes out of DH's checks because the less he knows we have the better. I max out our Roth's, DH has a pension, I put in 22% of my pay to 401k, we have no car payment, no credit card debt, a hefty EF (almost 1.5 years if one of us lost our job) and a relatively small mortgage for our income.
When the refund gets deposited, it instantly goes to my online savings account. I like it this way and will continue to do it unless savings accounts interest get better.
|
|
swamp
Community Leader
Don't be a fool. Call me!
Joined: Dec 19, 2010 16:03:22 GMT -5
Posts: 45,326
|
Post by swamp on Apr 15, 2011 13:39:25 GMT -5
This year, I paid the feds about $700. Last year, I got a $12k refund, all due to fluctuating business income. Every year, it's a crapshoot.
|
|
8 Bit WWBG
Administrator
Your Money admin
Joined: Dec 19, 2010 8:57:29 GMT -5
Posts: 9,322
Today's Mood: Mega
|
Post by 8 Bit WWBG on Apr 15, 2011 15:02:35 GMT -5
I gave a lot of charitable contributions, and I get $1,500 for my energy efficient HVAC. However, were it not for those things, I have moved much closer to the "get it during the year, instead of in a lump sum" crowd. This recent almost-shutdown, as well as the IOUs in CA has emphasized the urgency to take it as soon as I can get it.
|
|
Deleted
Joined: May 2, 2024 22:21:47 GMT -5
Posts: 0
|
Post by Deleted on Apr 15, 2011 15:50:20 GMT -5
Looks like we owe quite a bit this year and it was a nasty surprise. Finally got the tax return this am (I filed our paperwork months ago but DH's work didn't issue W2c until Monday. We still don't have a copy. Accountants say we owe almost 11k to the feds and $1700 to AZ. Last year we got a net refund of about $6k (what we paid in estimated tax payments). I've reviewed the return and don't understand. Our investment income was only up a little over last year and our world wide income was substantially less. The company is supposed to make us tax-neutral with our move over here but something isn't right with that kind of swing. Can't wait to see how the German tax return is going to be.
|
|
ameiko
Familiar Member
Joined: Jan 16, 2011 10:48:22 GMT -5
Posts: 812
|
Post by ameiko on Apr 16, 2011 11:02:34 GMT -5
This year I owed about 80 dollars: worked out fine for me.
|
|
Deleted
Joined: May 2, 2024 22:21:47 GMT -5
Posts: 0
|
Post by Deleted on Apr 16, 2011 11:19:32 GMT -5
This recent almost-shutdown, as well as the IOUs in CA has emphasized the urgency to take it as soon as I can get it. This was the final thing that light a fire under my a$$ to change our withholdings this year. I rather owe uncle SAM and know I can pay them or they owe me a small amount like $200 instead of having the state sending me an IOU for 1-2K.
|
|
RoadToRiches
Familiar Member
Formerly "indebt"
Joined: Jan 4, 2011 11:08:00 GMT -5
Posts: 965
|
Post by RoadToRiches on Apr 16, 2011 11:44:49 GMT -5
They could also use the $250 per month to keep their credit card debt paid off, and/or accelerate any other consumer debt such as auto loans. They could also put the $250 per month into an IRA or Roth. but again, as I mentioned above you are assuming people will make worthwhile use of their "extra" $250 per month and not buy more Starbucks, dinners out, etc..... most people are not wired this way People that have credit card debt and were not responsible with their money, most likely will blow away that $250 anyways. I am perfect example of this. I got big refund in 2009 tax year. I have no idea where it went...I blew it...and still kept my cc debt.. I changed my W2 to claim 2 because I got big refund last year trying to be smart..Well, since I was contributing to my 401k in 2010, I got 2700 back this year. I GUARANTEE you, that I would probably blow that money away if I got it on my paycheck, but since I decided to pay off my debt this year, I used that $2700 to setup my EF and put nice chunk on high APR card which I just paid off yesterday. It's how people are wired. Those of you who are good with money can't think of it this way and think it's stupid. Those of us who were stupid with their money and got in credit card debt, we KNOW math makes sense, but it's a matter of doing it. It's discipline. I think that all comes in time. For example, sure as hell, when I all this cc debt this year, next year I will adjust my W2 to try to get as close to $0 refund as I can. It's a shift in thinking/doing combination. If I want to take out a mortgage, I can take out 30 year loan and tell myself that "Oh i will just pay extra and make it 15 year loan myself!" Well...majority THINKS that they will do it, but actually they don't.
|
|
bobosensei
Well-Known Member
Joined: Dec 21, 2010 11:32:49 GMT -5
Posts: 1,561
|
Post by bobosensei on Apr 16, 2011 12:59:03 GMT -5
My refund was 41 bucks. The last 3 years we owed anywhere from a few hundred to a thousand.
|
|
LlamaLlamaDuck
Junior Member
Joined: Dec 29, 2010 18:53:50 GMT -5
Posts: 169
|
Post by LlamaLlamaDuck on Apr 16, 2011 13:35:30 GMT -5
When I used to file Schedule C and SE, I used to pay in a modest amount. Now that I have one job, lots more pre-tax deductions and the "making work worth it" or whatever that is called, I have gotten a modest refund the past two tax years. Not a huge impact on the Federal coffers, either way.
|
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Apr 16, 2011 13:47:12 GMT -5
tell myself that "Oh i will just pay extra and make it 15 year loan myself!" Well...majority THINKS that they will do it, but actually they don't. I'm surprised at the number of people who say this - they have to freeze their cc's in ice so that they can't use them, they can't follow a simple self-imposed 15-yr payment schedule, they can't invest the difference between a 15-yr & a 30-yr every month, yada. Has society's "I want it now" urge grown that powerful? The Automatic Millionaire had the simple answer - automatic deposit. (Invented in the 1970's so that the entire US workforce didn't leave early to stand in the line at banks on Fridays).
|
|