Taxpayers are dumb, really

[question everything]

They love their tax refunds, they wait for it, are planning on how to use it... Never, apparently look at is as interest free loan to the government. Or probably they do and don't mind.

But this year many are stunned, angry, confused. Their expected refunds have evaporated or, worse, they now owe money.

Well, last year Whiny Donny and the Republican ass kissers gushed about those few extra dollars in taxpayers paychecks, perhaps even more than a few.

This meant that the hoped for refund has been provided, in small installments in each paycheck. (That is, for the ones living off wages and salaries; we live off Social Security and RMDs..)

So look at the 2019 tax brackets, calculate your taxable income and taxes - more or less - look at your recent paycheck and if you want your old refund back, change your withholding. Your HR should be able to help.

https://taxfoundation.org/2019-tax-brackets/

Or, use the IRS withholding calculator

https://apps.irs.gov/app/withholdingcalculator/

Or, go to irs.gov and search for 2019 Form-1040-ES (pdf file)

There, on Page 7, you can find the schedule on how to calculate your tax, if you know your taxable income - more or less.

And do it now. Wages and salaries have already been paid for 3 months..

Sigh..

[TheBlackAdder]

1. According to my accountant: My deductions were reduced to give impression of tax savings for 2018.

.

I'm sure it was done to give this illusion to help Republicans in the 2018 elections, now the rest is due.

.

[TwilightZone]

2. Not everyone has a job that has consistent hours or has only one job.

Many people are working jobs where the hours vary frequently and/or are working multiple part-time jobs.

For them, determining the correct level of withholding in each situation is very difficult.

This works great for those who have a consistent job with consistent hours and consistent pay. For others, not so much. That doesn't make them dumb.

[question everything]

3. Agree. This may means that a large refund cannot be calculated, either

Still, we now have our 2018 return - or should be - and we should be able to try to figure out.

Personally I'd rather have more money in hand and not count in a large refund and, perhaps, this approach could work for the ones without consistent schedule. And if they end up with a refund - this would be a nice surprise.

[Codeine]

4. Most people are almost aggressively innumerate.

The idea of “calculating” (addition and subtraction to be honest) is anathema. The annual refund is almost magical — it’s something about which they don’t even think, or they’d realize that the refund has really been their money all along, overpaid to the tax authorities in weekly installments.

But I’ve given up trying to convince people that if you’re getting a big refund you’re doing it wrong.

[Big Blue Marble]

5. For many people, it is not wrong.

Most people are not able to save. Every two weeks, their paycheck seems to disappear before their eyes.
Their refund is a magical respite for their finances.

This sudden boost can be a vacation or a new refrigerator or something else they have wanted or needed.

As as far as the minders, worrying about the lost interest they could have accumulating,
has any one of them checked the interest rates of late.

[Codeine]

6. If they're able to work their finances

with their check under normal circumstances then they’re able to save that amount once it isn’t coming out of their check. That’s just. . . that’s math. They don’t want or can’t be bothered to save, but that isn’t the same as not being able to save.

The interest argument is a moot one, I’ll agree with you there. Nobody is earning jack on their bank’s interest rate.

[Big Blue Marble]

7. I agree with you with the exception

that not everyone has your level of self discipline. Personally, I have always found that "windfalls savings" are
the best way to accumulate funds.

Why do people get so worked up about how other people manage their money? It is a minor
point whether or not they get a refund. The refunds are not usually very large; it sure beats
paying extra; and for most, funds are the only thing that makes taxes fun!

We need to be far more concerned why so many have so little and struggle to make ends meet.
Isn't there a little blame the victim mentality in the criticism?

[Codeine]

8. I just dislike the wailing

that occurs when an entirely-predictable shortfall occurs in their refund. Where did they think that money came from? Smaller withholding equals smaller refund, but instead we got a lot of screaming about taxes going up. There’s no victim blaming because there is no victim. The money didn’t change, the dispersal method changed.

But in the real world I don’t let this be an issue. Discussion boards require discussion, but day-to-day life not as much. I think we all take dramatically exaggerated positions on minor issues here just to have something to say, LOL.

[Big Blue Marble]

15. Of course your logic is correct.

But as you know, many are not alway rational when it comes to money. And as someone
who has prepared taxes for others for years, I concur many do not understand the mechanics
of refunds. Yet, it is always more fun to tell them a refund is coming than to tell them
they are writing a check.

[pnwmom]

9. It's much worse than that. For millions of tax payers, they'll end up owing more OVERALL

not just because less was being withheld every month.

For voters in states with high local and state taxes, the lower withholding served to disguise the fact that they're really facing a net tax INCREASE because of the limit put on the SALT deduction.

[MiniMe]

10. W did the same thing

GOP STOP MESSING WITH WITHHOLDING TABLES TO TRY TO MAKE PEOPLE FEEL BETTER until they have to pay it all back the next April

[former9thward]

11. If you want a large refund at the end of the year just claim zero dependents.

Including yourself. No need to do calculations. Just change the dependent number to zero. Your withholding per pay day will go up and you will get it back when you file your taxes and use the proper number for dependents. Asking math challenged Americans to do actual calculations to figure it out is an impossible mission.

[W_HAMILTON]

12. Excuse you.

Many taxpayers live paycheck to paycheck and the extra couple of bucks from a more exact withholding won't make much of a difference throughout the year, but if it turns out a slight change in their circumstances warrant them owing even just a couple hundred dollars at tax time, that could devastate them financially as they struggle to figure out how to come up with a completely unexpected amount due.

And even if every taxpayer was """more responsible""" and put away their small bit of extra money from their paycheck into a savings account, then they are earning what? Approximately 1% interest? Maybe 2% if they are lucky? So, instead of an "interest-free" loan to the government, they are loaning money to Bank of America in exchange for a few pennies back each year?

The premise of your post is insulting.

[question everything]

13. Of course many live paycheck to paycheck, and many were grateful for the extra

money after the "tax reform." But they should understand that these additions mean no big refund on April 15, perhaps even paying extra.

[W_HAMILTON]

14. A lot of people didn't understand that...

...because this was billed as a tax CUT, not simply a tax shuffle from your end-of-year refund to your weekly paycheck.