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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.
That is the ideal but many like to get a lump sum as they will not save it and can use it for vacations or camp or bills accumulated throughout the year.
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Posted 4/12/22 6:45 PM  |
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KarenK122
The Journey is the Destination
Member since 5/05 4431 total posts
Name:
Karen
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Taxes
My husband claims nothing on his W2 so we get the max taxes taken out. We use to get back quite a substantial amount until the SALT tax was implemented. Now we still get a decent amount but it is almost half as it was before. While I know financially it is not the smartest, I like getting the money as a forced savings for vacations or house projects.
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| Posted 4/12/22 7:25 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Taxes
Posted by KarenK122
My husband claims nothing on his W2 so we get the max taxes taken out. We use to get back quite a substantial amount until the SALT tax was implemented. Now we still get a decent amount but it is almost half as it was before. While I know financially it is not the smartest, I like getting the money as a forced savings for vacations or house projects.
I definitely think it's a decent way to save if you can't do so otherwise. As Windy said interest rates are so low that if you just have it auto decucted and deposited in a high yield savings accound you aren't really missing out on much return wise. One thing I did when I was younger was to have an amount auto deducted every time I got paid that went into my fidelity mutual fund account. But to be honest if you are counting on the money and the market goes down you are at risk of losing some. obviously.
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| Posted 4/13/22 1:03 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Taxes
Posted by windyweather21
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.
That is the ideal but many like to get a lump sum as they will not save it and can use it for vacations or camp or bills accumulated throughout the year.
i completely understand the "forced" savings concept... and yes, this is the ideal situation.
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| Posted 4/13/22 2:53 PM |
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Re: Taxes
My guy finally finished ours up and we are actually getting money back this year 
We also switched to Single Zero for hubby and kept mine at Married 4 per his suggestions.
We are getting less than what you posted but close to it so I think we did pretty good.
Message edited 4/18/2022 11:21:30 AM.
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| Posted 4/18/22 11:21 AM |
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