My Wife and I just purchased a home, and the interest paid is well over 12,000 dollars. I've heard people talk (seemingly now, crap) about this huge refund........where is ours? We've paid a ton of interest last year that is all deductable. i.e; school loans, second mort., disaster stuff, prop. taxes. We are in the 25% bracket and file mar-jointly. I just don't feel like the return has been worth it. We are only getting back roughly 800 dollars more than last year when we didn't own. It really sucks!
2007-01-30 14:48:29 · 9 answers · asked by cheyguy2308 2 in Business & Finance ➔ Taxes ➔ United States
The refund is only a reflection of the taxes withheld. The less they withhold the less you get back.. I ideal situation is when you pay the tax man less than $100 when you file. That means you got your money during the year, paid your share of taxes and didn't give Uncle Sam an interest free loan. If you want a big tax refund increase you withholding, pay thousands of dollars in taxes during the year, let Uncle Sam use your money for free and come next year you'll get a huge refund of YOUR money that you did not use or collect interest on. As I wrote earlier, the best thing to do is to calculate you tax withholding so you pay Sam less than $100 when you file next year. Also stay away from tax CDs like Turbo Tax. See an experienced accountant, they know how maximize the numbers to maximize your return. They know where to fudge the numbers and where not to.
2007-01-30 15:07:23 · answer #1 · answered by RUDOLPH M 4 · 0⤊ 0⤋
When you purchased your house, did you reduce your tax withholding to account for the extra deductions and thus increased your take home to help cover the mortgage payment? If you did, this is why your refund is still so low. When I purchased my house, I changed my withholding to account for the new deductions. While my refund from year to year roughly remained the same, my take home increased by over $1,000 a month.
2007-01-30 15:51:00 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
12000 is part of your itemized deductions. Which also includes and property taxes(on house and vehicles), charitable contributions, state income or sales tax, miscelaneous other deductions. This total amount replacing your standard deduction option which is 10300 in 2006. So if you are just looking at home interest you are only getting a benefit of 1700 deduction x 25% =425 less in taxes owed.
2007-01-30 15:52:12 · answer #3 · answered by darrenwelsh429 2 · 0⤊ 0⤋
IRS has introduced it could not initiate processing those returns till their pc is programmed at cope with them. feels like I examine that previous due March substitute into while the 1st of them may be coming near near. in case you have a substantial refund coming without this credit, you have a pair of selections you will possibly not comprehend. the 1st is to e-record your 2009 return without this credit. as quickly as you get carry of your refund, you are able to submit a 1040X with sort 5405 linked. enable 3-4 months for this to be processed. the 2nd is to record your 2009 return without the credit. Then immediately record an amended 2008 return to incorporate the credit for the living house offered in 2009. As unusual as this could sound, it incredibly is allowed below the regulation.
2016-10-16 08:32:34 · answer #4 · answered by Erika 4 · 0⤊ 0⤋
Yeah, really love this question/issue. Everybody has friends who gloat about how they are going to get back so much money for their refund. I laugh, because that's just it... to be getting money BACK means they've already overpaid. So without knowing your specific info it's impossible to say whether you should sweat the smaller refund.
2007-01-30 15:57:01 · answer #5 · answered by ninjaccountant 1 · 0⤊ 0⤋
you should always try to get zero back on your taxes
why let the govt use your money interest free for a whole year?
you want money back? open up a christmas club account!
that'll pay you interest but uncle sugar wont
2007-01-30 14:59:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Quit complaining. 800 bucks is 800 bucks.
2007-01-30 14:56:19 · answer #7 · answered by Anonymous · 2⤊ 0⤋
probably didn't withhold enough - change your W-4 for 2007 (don't forget the state one too.)
2007-01-30 14:53:24 · answer #8 · answered by Dizney 5 · 1⤊ 1⤋
welcome to the world of homeownership...why folks think a house makes such a huge difference is beyond me...personally any year i do not owe i'm glad,even if i got $10 back
2007-01-30 14:53:06 · answer #9 · answered by charmel5496 6 · 1⤊ 2⤋