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MrsBurgos09
LIF Adult
Member since 9/09 915 total posts
Name:
Erica
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Taxes
Can someone please tell me how in the he!! people get 3-6K or even more back in taxes???
What are we doing wrong...
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Posted 4/11/22 12:11 PM  |
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PitterPatter11
Baby Boy is Here!
Member since 5/11 7619 total posts
Name:
Momma <3
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Re: Taxes
Posted by MrsBurgos09
Can someone please tell me how in the he!! people get 3-6K or even more back in taxes???
What are we doing wrong...
They overpay taxes during the year.
My parents always did this as a built in “savings” for vacations as they were not good with saving throughout the year.
In reality, you’re better off getting that money in your paycheck and investing it.
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| Posted 4/11/22 12:27 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Taxes
The simplest answer is they probably have more taxes withheld during the year from their paycheck than you do.
But it could be a variety of things like loss carryforwards, being in a lower tax bracket, etc.
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| Posted 4/11/22 12:27 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Taxes
I have no idea. We were owing so much (even when i adjusted my withholding in my paycheck ) that we started paying estimated taxes throughout the year and now we get a little back when we do our taxes- but it's not that we are getting money back- it's just we overpaid the estimated taxes throughout the year.
We still end up paying- it just softens the blow.
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| Posted 4/11/22 12:40 PM |
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nycbuslady
LIF Adult
Member since 9/15 1066 total posts
Name:
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Taxes
This year, the stock market did great! I didn't realize how much money we made until it was on the tax form. But, boy oh boy, was the tax hit bad!
So, in addition to your wages, it was probably that you made out well in your investments. The people who get money back, IMO, probably aren't making any money except for their paychecks. And, I bet the formuals for withholding in paychecks is such that the government takes out a little more to account for additional income people may have. This way, the government definitely gets their money. If they took out too much, the people get it back when they file. But that's just a guess on my part.
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| Posted 4/11/22 1:37 PM |
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RomeyT
LIF Infant
Member since 1/21 355 total posts
Name:
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Re: Taxes
Posted by MrsBurgos09
Can someone please tell me how in the he!! people get 3-6K or even more back in taxes???
What are we doing wrong...
You’re doing nothing wrong. Adjust your withholdings so you get back/owe as close to zero as possible. It’s not “free money” when you get a tax refund. In reality you’re providing the government with a zero interest loan while you could be taking that money throughout the year and invest it/pay off debt.
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| Posted 4/11/22 2:25 PM |
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Re: Taxes
They also might have a lot to claim. When our kids were younger we were getting money like that as we could claim many things. As they got older, and less childcare, we get less money and last year we owed.
We also get less in our checks now as per my CPA so we CAN get more at tax time as we use it for bigger expenses too as that has always worked for us. The interest we would get saving it is not even worth it anymore.
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| Posted 4/11/22 2:35 PM |
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Re: Taxes
Posted by PitterPatter11
Posted by MrsBurgos09
Can someone please tell me how in the he!! people get 3-6K or even more back in taxes???
What are we doing wrong...
They overpay taxes during the year.
My parents always did this as a built in “savings” for vacations as they were not good with saving throughout the year.
In reality, you’re better off getting that money in your paycheck and investing it.
Honestly the amount you get back from investing the money weekly is not as much as it was many years ago.
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| Posted 4/11/22 2:37 PM |
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busymomonli
Resident Insomniac
Member since 4/13 2050 total posts
Name:
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Taxes
Not trying to scare you but just wait until your child is over 17 and you lose the deduction. It ****ing sucks!! Both of my kids aged out and I have owed so much every year.
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| Posted 4/11/22 2:49 PM |
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Re: Taxes
Posted by busymomonli
Not trying to scare you but just wait until your child is over 17 and you lose the deduction. It ****ing sucks!! Both of my kids aged out and I have owed so much every year.
Yup. It just gets worse and worse every year  
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| Posted 4/11/22 3:02 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Taxes
You aren't doing anything wrong. Ideally you want to owe just a little bit so that you didn't have money tied up that wasn't earning interest.
Unfortunately for us, we typically file an extention because we have a complicated tax return due to investment properties and other issues. Last year we over paid by an exhorbitant amount. We finally filed in Sept and didn't get that money back until last week. So essentially we got no interest or investment return on that money for an entire year.
I would always have a tax professional do my return though so that you know you are maximizing your deductions.
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| Posted 4/11/22 3:06 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Taxes
Posted by windyweather21
They also might have a lot to claim. When our kids were younger we were getting money like that as we could claim many things. As they got older, and less childcare, we get less money and last year we owed.
We also get less in our checks now as per my CPA so we CAN get more at tax time as we use it for bigger expenses too as that has always worked for us. The interest we would get saving it is not even worth it anymore.
Technically even if you have a lot of deductions you should adjust for that in your withholding. However you never want to underwithhold because then you might be subject to fines.
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| Posted 4/11/22 3:07 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Taxes
Posted by nycbuslady
This year, the stock market did great! I didn't realize how much money we made until it was on the tax form. But, boy oh boy, was the tax hit bad!
So, in addition to your wages, it was probably that you made out well in your investments. The people who get money back, IMO, probably aren't making any money except for their paychecks. And, I bet the formuals for withholding in paychecks is such that the government takes out a little more to account for additional income people may have. This way, the government definitely gets their money. If they took out too much, the people get it back when they file. But that's just a guess on my part.
Typically the only time you have to pay taxes on investments is when they are realized so even if your portfolio went up substaintially you will only pay taxes on things that you sold. That's why it's sometimes better to invest in mutual funds, because while they buy and sell stock throughout the year, you only have to pay taxes on the gains when you liquidate your investment in the fund. This is not the case for all investment vehicles thou. If you get a K-1 then it is a pass through and you will have realized gains even if you didn't liquidate any of your investment.
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| Posted 4/11/22 3:11 PM |
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Re: Taxes
Posted by lululu
Posted by windyweather21
They also might have a lot to claim. When our kids were younger we were getting money like that as we could claim many things. As they got older, and less childcare, we get less money and last year we owed.
We also get less in our checks now as per my CPA so we CAN get more at tax time as we use it for bigger expenses too as that has always worked for us. The interest we would get saving it is not even worth it anymore.
Technically even if you have a lot of deductions you should adjust for that in your withholding. However you never want to underwithhold because then you might be subject to fines.
Well kids is a BIG thing to claim as well as housing. I remember our guy used to say buy a house, then have a kid, then have another kid.
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| Posted 4/11/22 3:51 PM |
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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Re: Taxes
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
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| Posted 4/11/22 4:22 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Taxes
Posted by ChilisWife
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
I claim no exemptions either and we still wind up owing every year.
I have no idea why.
That's when we starting doing the estimated taxes because it was getting out of control what we owed
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| Posted 4/11/22 4:55 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Taxes
Posted by NervousNell
Posted by ChilisWife
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
I claim no exemptions either and we still wind up owing every year.
I have no idea why.
That's when we starting doing the estimated taxes because it was getting out of control what we owed
Don't you own your house outright? That may be some of it as you don't have mortgage interest to deduct.
This year was worse for many since we got the child tax credit throughout 2021, not applied against taxes.
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| Posted 4/11/22 4:57 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Taxes
Posted by ali120206
Posted by NervousNell
Posted by ChilisWife
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
I claim no exemptions either and we still wind up owing every year.
I have no idea why.
That's when we starting doing the estimated taxes because it was getting out of control what we owed
Don't you own your house outright? That may be some of it as you don't have mortgage interest to deduct.
This year was worse for many since we got the child tax credit throughout 2021, not applied against taxes.
Yes we have no mortgage anymore.
And I swear since my husband started collecting a pension it got worse.
He also use to itemize deductions when he was working which obviously ended when he retired but I think that has changed now anyway and it's just a standard deduction regardless.
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| Posted 4/11/22 5:46 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Taxes
Posted by NervousNell
Posted by ali120206
Posted by NervousNell
Posted by ChilisWife
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
I claim no exemptions either and we still wind up owing every year.
I have no idea why.
That's when we starting doing the estimated taxes because it was getting out of control what we owed
Don't you own your house outright? That may be some of it as you don't have mortgage interest to deduct.
This year was worse for many since we got the child tax credit throughout 2021, not applied against taxes.
Yes we have no mortgage anymore.
And I swear since my husband started collecting a pension it got worse.
He also use to itemize deductions when he was working which obviously ended when he retired but I think that has changed now anyway and it's just a standard deduction regardless.
Is it possible they are not withholding federal taxes from his pention payments? If they aren't you'd be required to pay estimated payments.
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| Posted 4/11/22 5:50 PM |
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lpg21
LIF Infant
Member since 9/21 342 total posts
Name:
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Re: Taxes
We claim 0 on our W2. Also have the kids, mortgage, and daycare expenses. I like getting a refund because its like a forced savings for us since its hard for us to save during the year.
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| Posted 4/12/22 8:19 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Taxes
Much of the refund depends on your withholdings and then your deductions. We deduct a lot of mortgage interest, business expenses, charities and the kids so it all adds up to a decent refund each year.
I have a friend that likes a large refund, she considers it a forced savings, so she adjusts her withholdings to ensure a large refund every year.
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| Posted 4/12/22 8:36 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Taxes
Posted by lululu
Posted by NervousNell
Posted by ali120206
Posted by NervousNell
Posted by ChilisWife
I claim no exemptions on my W-2 so I get the most tax withheld possible to ensure I get a refund rather than owe. Yes I am fully aware this is stupid and is giving the government my money to hold but it is a forced savings for me. Few people have the discipline to save x amount every paycheck. So I actually count on my refund to pay for kids summer camp.
People also have businesses that have losses so they can take deductions that way.
I claim no exemptions either and we still wind up owing every year.
I have no idea why.
That's when we starting doing the estimated taxes because it was getting out of control what we owed
Don't you own your house outright? That may be some of it as you don't have mortgage interest to deduct.
This year was worse for many since we got the child tax credit throughout 2021, not applied against taxes.
Yes we have no mortgage anymore.
And I swear since my husband started collecting a pension it got worse.
He also use to itemize deductions when he was working which obviously ended when he retired but I think that has changed now anyway and it's just a standard deduction regardless.
Is it possible they are not withholding federal taxes from his pention payments? If they aren't you'd be required to pay estimated payments.
I think we checked that because it wasn't making any sense how much we were owing when we were claiming 0 for both of us.
I'm going to ask him again... he's in charge of the taxes lol
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| Posted 4/12/22 9:19 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Taxes
I get a decent amount back but not as much as I use to. We moved up I guess a tax bracket so we are getting less we also don’t have daycare expenses anymore so we can’t write that off.
However We both claim the highest amount we can so we obviously overpaid throughout the year and yes it gives the government a free loan but I don’t want to owe.
With that said we only get back a decent amount from federal and I’m only saying its A decent amount because you said three to $6000. I feel like we are still paying insane amount of money throughout the year! I feel like most of my pay check goes to taxes so really I would expect more money.
We also get back a few hundred from state but that’s only because I have them withhold extra money every paycheck if I didn’t somehow I would owe state which makes absolutely no sense to me since we are claiming the highest we possibly can. Which means if I actually claimed what we were supposed to we would somehow owe state and they take tons of money out of my check each paycheck.
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| Posted 4/12/22 11:04 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Taxes
i used to work for H&R Block.
the majority of people who get a large refund back are those who qualify for the Earned Income Credit. they make very little money in the year and have at least one dependent child.
you don't want to be one of these people. i know. i used to be one of them.
other reasons for large refunds are (like others have said) crazy overpayments on their taxes or some kind of loss.
i've moved my way out of poverty and i feel very blessed to know that i no longer qualify for all those refundable credits (EIC and refundable child tax credit).
you might want to have a few extra dollars taken from your paycheck to cover the balance you owe. the closer you get to zero, the better you are.
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| Posted 4/12/22 5:07 PM |
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nycbuslady
LIF Adult
Member since 9/15 1066 total posts
Name:
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Re: Taxes
Posted by MarathonKnitter
i used to work for H&R Block.
the majority of people who get a large refund back are those who qualify for the Earned Income Credit. they make very little money in the year and have at least one dependent child.
you don't want to be one of these people. i know. i used to be one of them.
other reasons for large refunds are (like others have said) crazy overpayments on their taxes or some kind of loss.
i've moved my way out of poverty and i feel very blessed to know that i no longer qualify for all those refundable credits (EIC and refundable child tax credit).
you might want to have a few extra dollars taken from your paycheck to cover the balance you owe. the closer you get to zero, the better you are.
This reminds me of something my mother said. When she was young, she would hear people complaining that they had to pay so much taxes. She said "Well, they have to pay because they have money. We don't have any, so we don't have to pay." As the years went by, she had to pay taxes and started to complain too. Then someone said to her "I guess you must have money, so that's why you have to pay!" I guess it's the cost of success!
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| Posted 4/12/22 5:51 PM |
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