What are the secrets to getting a big tax refund at the end of the year?

Question

The nation's average return is $ 2,500 according to money.com.

http://money.cnn.com/2007/03/16/pf/taxes/refunds/index.htm?postversion=2007031910

Why am I only getting under $ 150.00 ?

Answer 1

Here's the secret to a $5,200 refund:

1. Go to your payroll department and file a new Form W-4. Have them withhold an extra $100 per week for your income taxes. If you're paid bi-weekly, write $200 in the box.

2. When you file your 2007 tax return in early 2008, you'll have a nice FAT tax refund! Of course, you'll have $100 per week less to live on for the privilege of lending that much $$$ to the government interest free but YOU'RE the one who wanted a big refund!

Not such a good idea, is it? Actually, where you are right now with a small refund is just about IDEAL. You're NOT lending $$$ to the government AND you're getting as much $$$ in each paycheck as possible.

Personally, I'd rather pay a few $$$ at tax time than get a refund. That way I have the use of ALL of my money ALL year. As long as you owe less than $1,000 or have paid in 90% of your tax liability or have paid in at least as much as the previous year's liability there are no penalties for underpayment of taxes. That's fine with me and it keeps my bank balance topped up as high as is legally possible all year long.

Answer 2

Basically if you want a refund at the end of the year, you will want to fill out the W-4 form with your employer, usually the HR dept or hiring manager will have one.
You can also look at the form at www.irs.gov

Let your employer know you want to fill out a new W-4 for this year, then on line 5 it will say: (total number of allowances you are claiming) put Zero to claim no allowances.

That will take out more taxes from each check but at the end, when you have your yearly taxes done, you'll get more back.

Also, if you are single, yeah, like it was said before, make sure you file head of household which gives you bigger tax deduction so you'll get more back for yourself. See how it works out and you should get more than $150.

However, it is true, when you have more taken out of your checks by claiming Zero on line 5 of the W-4, the government uses that extra amount from each paycheck that you pay which makes interest on their accounts throughout the year.

So, it's up to you. Or you can claim 1 on line 5 and a bit less is taken out for taxes from each paycheck but you should still get some back. See how it goes.

Answer 3

The first possibility is that you did not make that much, or you did not pay as much. The second possibility is that you estimated how much tax you would have to pay better than most people. Also, you may have missed some deductions, or you may have simply not done anything with your money to get a deduction, especially if you are single without kids. It is hard to say exactly, but I bet you are only getting 150.00 due to a combination of these.

Answer 4

On the W-4, line 6 allows you to have your employer withhold an extra amount from each check. If you are paid every other week, putting $100 on that line will increase your refund by $2600. I prefer not to loan the IRS money. That is what getting a refund means you did.

Edit: I just wrote the IRS a check for about $450. As long as the amount owed is under $1000, there is no penalty.

Answer 5

You are getting only $150 because you are smart enough to not let the government use your money all year interest free. I know a lot of people who want big refunds because they can't save money on their own. They may as well bury their money in a jar in the backyard.

Answer 6

a refund is not free money from the government.

if you are getting a refund, that means you paid too much in taxes. you've let the government use your money interest free.

the best thing it to actually owe a little bit at the end of the year.

Answer 7

Get married and have several children---that will certainly help with all the Child Tax Credits...LOL! :)

Answer 8

Change your W2's withholdings.
File head os household.
Claim yourself.
Have a child.

I got back $4200 Federal and $340 State!!!