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No its not a first home.
This is how I did it...
No its not a first home.
I don't know where you bank at to get a 2% return on your savings; even money market rates generally aren't that high.
As far as the gov't paying YOU interest, we actually did this year. I discovered an error on two years' prior returns; as a result, we were owed some money back and so we filed 1040-X's for the two years. The IRS paid the money AND interest on those amounts...and then sent us a 1099 this year so we would pay tax on the interest!
Well, there was this one ex of mine...
I've only gotten one tax refund in my life. My longest stretch of employment was for family and my grandmother never figured things out right. Also, I was making so little at the time that it was easier to come up with a few hundred dollars once every year than it would have been to try and pay my bills on slightly less money every month.
She passed in late 2006 and left me a bunch of income property which I sold in 2007, so I got a nice return in 2008 of about $5,000. I've been unemployed and living off money in the bank since I came back to school, though, so I haven't even had to file for the last two years.
I was getting 1.69 at Ally online till about a month ago when it got knocked down to 1.49. ALLY, ING, and Etrade all had 2% at some time in 2009 I believe.
and I'm saying that the government doesn't add interest into your refund you get each year even though that is money they took from you for a couple months that you didn't need to pay to them. If I gave them $2,000 throughout the year to cover my taxes, and I only owe them $500, I don't see any interest on that $1500 they borrowed for a year. I could have used that money elsewhere for myself.
tax credit of 8,000 plus whatever return I usually get like 6,000. It all goes in the bank anyway.
I am getting a larger than normal return because I am a timecard employee who claims “0” all year & I took advantage of some tax credits from the stimulus package…
Some of you folks are pretty savvy when it comes to finance & I hope you all continue to share your thoughts & information in 2010….
Still waiting on 2 W2s for my wife, but based on what i entered so far from what we have, and estimating on the remaining W2s...we stand to get back almost $5000 dollars this year...
wut da ?!? sweet!
Looks we are going to have to pay this year.
Tax season.
I have friends in retail..they say people buying up furniture and electronics like hot cakes. I hope some people still save...for a rainy day.
pfft...who needs to save when the worlds going to end in 2012 anyway...MORE BLURAY PLAYERS!
Richers dont get tax refunds, they get tax bills.
A person I work with paid $300k in taxes for 2009.
They then got a bill from the IRS for another $30k.
Thats a richer.
I had to write a 232K check in 1996 when I sold a company I had started. I wanted to throw up.
Richer....
We do ok...when i was a kid, i thought people who made as much as my wife and i were rich...but now we are pretty much just average.
My tax returns have always been in the 100s...averaging around 600 dollars.
I think having the baby, me going to school, sending baby to daycare, really helped us with a ton of deductions this year.
...ouch...
Yeah, this person is heavily invested with real estate, stocks, precious metals and income.
I know its an excessive amount to pay in taxes...I'll never argue on behalf of government.
But lets not cry too many tears for a person who had an income in the 2 million-ish range. They got to keep 1.5 million. I am running out of kleenex, excuse me a moment...
By the way, I have no idea how much this person earned. I am guessing at $2 million. Could be less, could be more, I have no clue.
Eh, I wish I had made that much. I built the company for 5 years and they basically took half the profit when I sold it plus recovered some startup loss write-offs.
I have never had a large refund and I find it ridiculous that people get large refunds. Cowboy's refund does not reflect on him, but the insane policies of our government. Nobody should be subsidized that can provide for themselves, except for temporary, emergency reasons.
The tax system should be simplified, and nobody surprised by what the owe.
As for large refunds, letting the government take way too much taxes out for a larger refund... Can you say "tax free loan" to the government! You'd be better off to put that money in a savings account.
Now I find this $400 "Making Work Pay" credit ridiculous that most of us will get. I do the best I can to have to pay the government a little rather than give them a tax free loan. If not for the $400 credit, I would be paying the feds $105. Instead, I'll be getting $295 back. If I didn't feel I already pay too much taxes, I wouldn't even claim it.
The part of the tax code that disgusts me is the "Earned Income Credit." Years ago, it only applied for someone of low income with 1 or 2 children. Then they added single people to it, and now they pay even more up to 3 kids.
I'm sorry people, but if you cannot afford to than kids... DONT!
Why are we subsidizing baby factories?
Well if you don't like the EIC adding single people, then you will love the fact that it rewards single parents over married filing jointly. My wife and I don't qualify for the EIC with our two kids because we make too much. However, if we were not married, and she claimed her daughter, and I claimed our daughter (each single with one child instead of married with 2 kids), then not only would we each qualify, but the aggregate sum of the two EIC's would be 1000 more.
I just checked...I got $981 last year. That was $200 more than this year. So that's the highest.
I think it was all the student loan payments that did it last year. It knocked down my net income like $1,500. This year it was only $200.
Yes, I know. There are people who do manipulate the system as much as they can too. I can't really say I blame anyone for using the loopholes, but the fact it can happen is irritating.
Here's my question.....
I have medical bills that piled up last year. I've set up payment plans with all the doctors, cause I can't afford to pay each bill all at once. Can I use those as deductions, even though I haven't fully paid them yet. My families medical bill adds up to like $6500 last year. $4000 for me & $2500 from our son being born. I have insurance, & thank goodness. The actual bills came out to like $45,000.
Without those deductions I'm getting $3400. Last year got $8200 from the original 1st time home buyer credit.
No if you have insurance then co-pays and insurance deductibles are not tax deductible.
From reading the IRS site, they key on "paid" expenses, not expenses incurred.
You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. (But see Decedent under Whose Medical Expenses Can You Include, for an exception.) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial ins ution showing when payment was made is the date of payment. If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged.
See http://www.irs.gov/taxtopics/tc502.html and http://www.irs.gov/publications/p502/index.html.
If you pay them this year, you would add them to your itemized deductions (the amount exceeding 7.5% of your AGI, anyway). With a family it's hard to reach the standard deduction, but if you're already able to itemize, this will help.
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