divvy
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Fri Feb-12-10 02:35 PM
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I got a wedding present from Uncle Sam |
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I got married last November, and I found out yesterday that I will get a $6323.00 refund for my Federal Taxes. Holy cow, I have never even heard of a refund that big before. I talked to others at work who said that they are getting a huge refund this year also.
biggest factors that I know of.
12k TIRA contribution Married filing jointly instead of single head of household Spouse lost job Spouse went to school full time
My taxes were prepared professionally, so I dont think there were any mistakes. If everyone gets a refund this big, will the government go broke? Is this just a one time fluke, or is this going to be a more permanent improvement in my taxes?
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RUMMYisFROSTED
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Fri Feb-12-10 02:37 PM
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divvy
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Fri Feb-12-10 02:40 PM
Response to Reply #1 |
4. I know, it really does sound like welfare |
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When I was single, the biggest refund I ever got was about $700
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mdmc
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Fri Feb-12-10 02:37 PM
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2. I wonder if domestic partners can file jointly.. |
divvy
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Fri Feb-12-10 02:41 PM
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5. Well, if they can't then they should be able to. |
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At least I think they should be able to.
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notadmblnd
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Fri Feb-12-10 03:10 PM
Response to Reply #2 |
12. I know in Michigan, one can not claim a common law spouse |
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Other than that you can claim (as head of household) anyone that you support for 6 months or more out of the year.
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meegbear
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Fri Feb-12-10 02:39 PM
Response to Original message |
3. Look like sombody's gonna be donating to DU ... |
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and I'll take a heart, thank you.
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ChicagoSuz219
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Fri Feb-12-10 02:53 PM
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6. I'm guessing the 12K TIRA contribution... |
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...had a lot to do with it. Also, if your spouse lost his job mid-year, he'd be entitled to money back as when he was working the taxes they took out were based on a 52-week year. The 6K refund is for you both.
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divvy
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Fri Feb-12-10 03:06 PM
Response to Reply #6 |
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There were some benifits to the different filing status compared to the with-holding rate too. There was a "hope credit" of $900 for being in school too.
Yes, the refund was for both of us together.
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notadmblnd
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Fri Feb-12-10 03:16 PM
Response to Reply #9 |
15. I believe there was a 400.00 credit for working too. |
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I'm not a professional, but I do taxes for people that can't afford to go to the overpriced tax services (I worked for one once. I felt like a vulture), mostly friends and family. They're all low income. Anyway, I've seen them all get an extra 400.00 back this year just for having a job. The State of Michigan also began giving an earned income credit. People are very happy with their refunds this year.
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ChicagoSuz219
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Fri Feb-12-10 04:30 PM
Response to Reply #9 |
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Next year's may not be as generous... :-(
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county worker
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Fri Feb-12-10 02:53 PM
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7. You had too much withheld since your situation changed during the year. |
divvy
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Fri Feb-12-10 03:08 PM
Response to Reply #7 |
10. Yes, we were both paying the single tax rate all year. |
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Then we got married on november 24th. Do you think lots of people will get a whopper this year? Others I work with are getting record refunds too.
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county worker
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Fri Feb-12-10 05:15 PM
Response to Reply #10 |
22. Not me. My wife and I are dinks and we have to add to our withholding to not have to pay more with |
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our return. We will get hit with the AMT this year I think. I think we pay a bit more than our fair share but I am not unemployed so I will not gripe very much.
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hfojvt
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Fri Feb-12-10 02:57 PM
Response to Original message |
8. everybody is getting an extra $400 this year thanks to Obama |
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but that's not gonna bankrupt us. As a couple, you are getting an extra $800. Plus, you are getting some of your spouse's refund as well as your own. Adding a spouse to your tax return also gets you another $8,000 in standard deductions alone. The fact that you maxed out on traditional IRA deductions (although $12,000 seems high, since I thought it was limited to $5,000 per person) also gives you another $5,000 to deduct from your income. That's $13,000 or so, at a 20% tax rate would save you about $2,600 in taxes. There may be other deductions for tuition these days.
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divvy
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Fri Feb-12-10 03:10 PM
Response to Reply #8 |
13. The "hope credit" for school was on top of it too. |
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Something to do with the stimulus package, and being at least a half time student. It was an additional $900, but I cant remember if it was a deduction, or a tuition rebate.
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tomm2thumbs
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Fri Feb-12-10 03:25 PM
Response to Reply #8 |
17. wow, there should be a 'spouse in name only' exchange online for folks just to get tax breaks |
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Legal marriage for tax purposes only. hahaha At least for those who cannot get federal benefits, but are married, domestic partners, etc. At least until the federal system catches up. Fair is fair.
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hfojvt
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Fri Feb-12-10 07:25 PM
Response to Reply #17 |
23. it's not that big of an advantage |
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For example, I am already getting the $8,000 stamdard deduction and IRA deduction for myself. If I got married, my spouse might enjoy those and thus her refund would be larger than before, but it would not really be a net addition. My income minus standard dedictons minus IRA just gets added to hers (or vice versa, depending on who files). I guess it becomes a pure gain if my income was zero, but that instance is kinda rare. It's just one way that adding a spouse would make your refund seem that much larger than before.
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aikoaiko
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Fri Feb-12-10 03:09 PM
Response to Original message |
11. It's true, for all my complaining, my effective federal tax rate is only 6 -7%. |
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I've got my withholding scheduled close to correct -- so I only get about $800 from the Fed.
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earth mom
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Fri Feb-12-10 03:15 PM
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14. Congrats but we're getting about $700 LESS between state & federal and nothing changed except |
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for the chump change "stimulus" that Obama handed it.
So it's not lollipops and sunshine for everyone. :grr:
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justabob
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Fri Feb-12-10 03:18 PM
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16. I was stunned at my refund as well |
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Twice what I got back any other year.... and it couldn't come at a better time! It is going to save me and make expanding my sideline business I have been working on that much easier. I will sigh a huge sigh of relief when it lands in my account (any minute now). I too am curious if it is just this year, part of the stimulous/tax break, or what. In any case... hallelujah. :)
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reflection
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Fri Feb-12-10 03:33 PM
Response to Reply #16 |
19. Mine was very high as well. |
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I work two jobs - for a company during the day and for myself at night. My night work fell off to almost nothing last year. My tax refund was quite high this year. Much larger than any year under Bush.
Though I was pleasantly surprised, I'm going to go back over my return and see exactly where all that money came from.
Going to buy some tires for the car, feed the childrens' college funds, write a big fat check to the local mission, and pay down some debt...
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justabob
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Fri Feb-12-10 04:22 PM
Response to Reply #19 |
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is where the lionshare of my refund is coming from.... much more generous than I remember it being in years past.
I have big plans for the money too.... need tires and some work done on the car, catch up the car note, work clothes and shoes... basically everything that has had to wait for the last six months. :)
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tammywammy
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Fri Feb-12-10 03:33 PM
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18. I'm getting about twice what I got back last year. |
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I know I should adjust my W4, but my biggest deduction is tuition and I'm worried if I adjust for that it'll be removed and I'll end up owing money.
For 2008 I had to claim the $5800 for leasing my mineral rights to the gas company, so for 2009 I didn't have that extra income to pay taxes on. Then I had my tuition and house. And in Texas we can deduct our sales tax and I purchased a new (to me) vehicle so that was added to my standard sales tax deduction. Plus my regular charity contributions (which remain about the same every year).
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