How can I increase my federal tax refund??

Question

Here is my setup: Married, filing jointly.

Here is my summary on turbotax.

Taxable Income:
Adjusted Gross Income $64,671
Less: Itemized Deductions $15,416
Less: Personal Exemptions $6,600
____________
Taxable Income $42,655


Taxes and Credits
Income Tax $5,634
Other Taxes $20
Less: Tax Credits $15
____________
Net Tax $5,639


Payments
Federal Tax Withholding $5,736
Estimated Payments $0
Telephone Tax Refund $40
____________
Total Payments $5,776


Why on earth is my refund only 140 bucks??

Should I claim 0/0 or 0/1???

Answer 1

If you really want a bigger refund, change your W-4 to request that they take out an extra $1000 a month from your pay. Then you'll get a refund of the extra $12,000 at the end of the year.

Doesn't sound like a good idea? I didn't think so. Leave things alone - you've done a good job of breaking about even, so you don't owe, but didn't give Uncle Sam an interest-free loan for the year either.

Answer 2

Uh....you got a refund. Why do you want to withhold more money from your paycheck so you get a larger refund? If you increase your withholding, that means your take home pay per paycheck goes down. Increasing your withholding also means that you are giving the government an interest free loan on your money.

The ideal situation is where your withholding matches your tax liability for the year, so you don't owe anything, nor do you get anything back.

Answer 3

Your refund should only be $137. Having a low refund is ideal, that means that the government didn't just keep your money all year without paying you interest. Large tax refunds are bad for consumers because that means you overpaid throughout the year. You are better off, instead of overpaying, to have a portion put into savings. This way you earn interest on your savings, instead of an interest free tax refund. Some people don't have the discipline to save on their own, if this is you, increasing your withholding maybe be a good way to force yourself to save, even if you miss out on interest payments.

Answer 4

Your refund is "only" $140 because you're having the proper amount of tax withheld.

If you want to make an interest free loan to the government, knock yourself out and reduce your withholding exemptions. Keep in mind that you'll get a smaller paycheck in exchange for lending the government that free money -- proof again that no good deed goes unpunished.

Answer 5

Have your W-2 adjusted so they take extra money out of your paycheck every week (if you're totally irresponsible). I aim to owe about 800/year because I would rather have access to MY money than having to wait for unc' sam to send it back to me after keeping it interest free for up to a year. Put the extra money into a separate saving acct that you don't touch and you should make a couple hundred on interest at least in a year. Don't owe more than 1000 for two years in a row though, or you will have to file quarterly.

Answer 6

OK - so you did pretty good here as the idea is to balance out to zero (0) and you get $140 to take the family out to dinner.

The only way possible to increase anything pertaining to personal income and taxes is to always vote Republican. They believe in small government run efficiently and that churches and donations should support causes for the poor and lame.

On the other hand demon-crats believe in government as big as they can make it and jobs for all their cronies. They believe strongly that government and higher taxes should pay for the poor and the lame. They never donate to anything unless there is a way to get it back double which means they rarely give anything. They vote to support terrorists and illegals first - every single time - and to take the money from you. They certainly talk a good attractive spiel, but it turns out to be a catch 22 in that what they mean is only if "you" pay for it.

Answer 7

have a baby