on a tax refund? A friend of mine told me she got $8,000 back last year. She has 2 kids, owns a house, makes under $40,000 a year and she's married but her husband doesn't work so won't file anything with his name on it. I was like wow that's good that she gets so much back.
I have 5 kids my husband works 2 full time jobs, he made a little over $40,000 last year. We only got back about 3,500. My husband carries all 5 of the kids on 1 of his jobs so they don't take alot of taxes out. Why do we get back so little?
Last June we bought a house and I thought that would probably end up getting more money back because of this but when I went to Jackson Hewitt ( where we always go) and explained our situation she told us that we wouldn't even get back 5,000. And that we don't qualify for earned income credit because we're over 38,500 but we could use child tax credit.
Does this sound right? Why do we get back so little?
2007-01-20 12:34:53 · 3 answers · asked by Lovely1 1 in Business & Finance ➔ Taxes ➔ United States
I guess that is a way of looking at it Nelson thanks for replying. He just got another job bringing in about 70,000 a year so I guess we'll have nothing getting refunded to us next year.
2007-01-20 12:44:55 · update #1
Your husband is wise enough to reallize that it is better to have your money in your account not the governments. I prefer to get nothing back or to have a small payment. You have to budget for that though so you are not surprised. Again--KUDOs to your husband.
2007-01-20 12:40:27 · answer #1 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
Your friend is filing her W-4 differently than you are. For instance, there are 5 of you, so your hubby probably claims Married with 3 exemptions, which means that he gets higher paychecks and lower annual refunds. Your friend may file Married with 0 exemptions, which would mean that she would get lower paychecks and a higher annual refund. Just remember on thing - the higher your annual refund, the more money you're letting the IRS earn interest on when you could have it in the bank earning YOU the interest.
2007-01-23 11:07:04 · answer #2 · answered by Melissa O 1 · 0⤊ 0⤋
I just saw a client who made $145K and got back $7000. Another family had around $70K and got back $12K. Depends on all of the client's situations. Withholdings & itemizing really does help. Every client / return is unique.
2007-01-20 13:52:10 · answer #3 · answered by Successy Lady 1 · 0⤊ 0⤋