Well my taxes are very simple, the past few years I have been doing them online, like the free turbotax, I seem to be getting ripped off with what I get back, any insight into this? Im getting next to nothing back, my bf got his done by someone and got triple what I did.
2007-01-30 11:35:38 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Actually, if you're getting a small refund you're getting as much money on every payday as possible! I'd personally rather do that than make an interest free loan to the government any time! If you get a big refund, that's what you're doing -- lending YOUR money to the government FOR FREE!
2007-01-30 11:46:35 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The idea here is that if you are paying your taxes correctly, you should not be getting anything back. And you should not owe.
When the government refunds it means individuals paid too much tax. This is money that goes into the government coffers and stays there the remainder of the taxable year. Individuals cannot use this money to spend on the economy and have to wait to get it back. Yes, the refund includes a little interest, but it is not the same. Taxpayers who paid too much could have invested their money elsewhere and got a better return. Investors who paid tax properly were able to put their money in the DJIA last year and earn a return on their money of 16.67%! Think the IRS will pay you that rate if you overpay?
The fact that taxpayers are being refunded huge sums of money seems nice, but it is not. It means they paid too much in taxes and the government is refunding them their money in compliance with the Internal Revenue Code and the States' Tax Codes.
2007-01-30 19:49:06 · answer #2 · answered by Anonymous · 0⤊ 1⤋
What you get back depends on what you have withheld, as well as how much tax you owe.
You can have an extra $5200 in your refund very easily. Just have your employer withhold an extra $100 each week.
If you aren't getting much back, all that says is that you aren't making an interest-free loan to the government like someone is who gets a big refund.
2007-01-30 19:44:49 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
What you get back is what you had withheld minus what you owe. It's a byproduct, not something you plan for. Make sure you are taking all potential deductions.
2007-01-30 19:39:01 · answer #4 · answered by Michael H 2 · 1⤊ 0⤋