Last year my employer withheld about $1000 for Federal Income Tax. However, I also refinanced my house, which I thought would give me a bigger tax break (i.e. greater morgage interest = larger refund). Yet I am finding with TurboTax, no matter how I input the numbers, the max I get back is $1000. Is this correct? My friend, who is married with 2 dependents, says she gets a lot more back then what is withheld from her paycheck. Where am I going wrong? Thanks in advance!
2007-02-08 01:33:52 · 7 answers · asked by CrazyDiamond 1 in Business & Finance ➔ Taxes ➔ United States
Deductions and most credits will only take your taxes owed down to zero, which would mean you'd get back everything that was withheld, but not more.
It is possible for some people to get more through something called a refundable credit. The most common of these is the EIC or earned income credit. Eligiblilty for that depends on the number of children. With no children, your income can't be over around $12,000. With one or more qualifying children, it can be in the $30's. If you don't have eligible kids and your friend does, or if your income is over $38K if you do have kids, that would explain the difference - you would not get EIC.
2007-02-08 02:32:18 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Since your friend has two kids and if she makes under a certain amount she will get the child tax credit and the EIC, so her refund will be bigger.
I have found the H&R Block website has a really great program online that works and has all the new tax laws built in. It will ask you the questions and then calculate your refund. I thinks it is better than using the older version of the Tax in a box, especially if you havent upgraded it. Remember you can take the new phone tax refund this year as well. Good luck!
2007-02-08 01:38:18 · answer #2 · answered by mudd_grip 4 · 0⤊ 1⤋
The treasury is not going to refund more than you gave it unless you qualify for things like earned income credit. And why on earth are you making an interest-free loan to the government? Get your withholding adjusted so that it's closer to the amount of tax you would really owe -- which it sounds like is zero in your case.
2007-02-08 02:11:57 · answer #3 · answered by SDD 7 · 0⤊ 0⤋
the "kiddie tax" purely applies to UNEARNED earnings which includes pastime on a monetary company account or something. you're earning this earnings by technique of operating for it as an intern, so it counts as EARNED earnings. you'd be required to record it on your own earnings tax go back and your father ought to not record any of it. Your tax go back may have $12,000 of earnings. you receives a time-honored deduction of $5800 leaving you with $6200 taxable and a federal tax criminal accountability of about $620. in the experience that your federal earnings tax withheld is more effective than that, you receives the version refunded once you record. If fit withheld is way less, you'll owe the version once you record. note: social protection and medicare withholding is separate. that's not area of the federal earnings tax withholding so it would not count number in the route of your federal earnings tax criminal accountability and its not in any respect refunded. the rule of thumb on your dad to declare you as a "qualifying baby" calls for that you do not provide more effective than 1/2 of your own help. take a seem at booklet 501 and the help worksheets to ensure that you do meet this attempt and be prepared to practice it in the experience that your dad is audited.
2016-11-26 02:24:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The tax savings from mortgage interest depends on your itemized deductions over your standard deduction !! . lets say you are single and std deduction is 5150. Now to get any better with itemized deduction, it need to be over this amount. So if your mortgage interests and other deductions put you to 5150, you are not gaining anything from paying that mortgage interests.
Now lets say you refinanced to higher mortgage interests and your itemized deduction with new mortgage interests is 6150. You actual tax saving is taxes you save on $1000.00 ( 6150 - 5150). The actual dollar value you save depends on your tax bracket.
If your filing status is different use this mortgage tax savings calculator to figure out your tax savings.
http://findtaxservice.com/taxcalculator/mortgage-taxsavings-calculator.html
2007-02-08 01:46:06 · answer #5 · answered by onlinetaxsiteswatch 2 · 0⤊ 0⤋
You can't get back more than you put in. If you only paid (through withholding) $1,000 in Federal income tax, then that is the most you can get back through a refund (under normal circumstances).
My guess is your friend who receives a larger refund is paying more taxes (through withholding or other means).
2007-02-08 01:39:43 · answer #6 · answered by Dossy 2 · 0⤊ 2⤋
, you may be interested in some of the turbo Tax Prep Deals I found that saves some money on tax prep services online.
2007-02-09 22:00:11 · answer #7 · answered by hall_andrew1 1 · 0⤊ 0⤋