To you guys who know about taxes... HELP!

exindust · Apr 12, 2007

So every year around this time i hear about all you guys getting these sweet refunds and buying a buncha stuff with them.

Is it normal for an Independant Male in Southern California Full-Time Student, Making about 25-30k a year to OWE money? I usually owe a couple hundred bucks...

I never get any of these returns you guys all talk about and wondering if im doing something wrong or missing something....?

Saleen311 · Apr 12, 2007

if you arent taking enough out of your pay checks you will always owe.

04DarkShadowGT · Apr 12, 2007

exindust said:
So every year around this time i hear about all you guys getting these sweet refunds and buying a buncha stuff with them.

Is it normal for an Independant Male in Southern California Full-Time Student, Making about 25-30k a year to OWE money? I usually owe a couple hundred bucks...

I never get any of these returns you guys all talk about and wondering if im doing something wrong or missing something....?

You are actually doing better to owe. The end $$ is the same whether you owe or get a refund.

It all boils down to if they took the right amount out your check. If yu get a refund they pulled too much from your checks. If you have to owe they didnt take enough out.

But think of it this way, if you get a refund the government has been using your money for a year to make $$. You are basically giving them an interest free loan on your $$. If you owe, you were getting an interest free loan from the govt that you gained interest on.

Most people like the refunds because they see it as free $$ they can piss away. When in reality it was theirs all along. They just cant save it throughout the year so they like getting the big check at the end of the year.

Kilgore Trout · Apr 12, 2007

How many deductions do you claim on your W-4?

If you want a refund change the number to zero.

goshia · Apr 12, 2007

Yeah living in California with a bunch of Democrates, ouch... The King of taxation state. Keep paying for those wonderful things like people that don't work, food stamps, insurance, global warming studies and changing the definition of a pet owner to animal gaurdian.

speedfreak98r · Apr 12, 2007

Nothing like waiting until the last minute.

TeddyKGB · Apr 12, 2007

04DarkShadowGT said:
You are actually doing better to owe. The end $$ is the same whether you owe or get a refund.

It all boils down to if they took the right amount out your check. If yu get a refund they pulled too much from your checks. If you have to owe they didnt take enough out.

But think of it this way, if you get a refund the government has been using your money for a year to make $$. You are basically giving them an interest free loan on your $$. If you owe, you were getting an interest free loan from the govt that you gained interest on.

Most people like the refunds because they see it as free $$ they can piss away. When in reality it was theirs all along. They just cant save it throughout the year so they like getting the big check at the end of the year.

+1

It is completely normal if you go by the "standard" expemptions, especially if you don't itemize your deductions or own your own house.

Logan2003Cobra · Apr 12, 2007

04DarkShadowGT said:
You are actually doing better to owe. The end $$ is the same whether you owe or get a refund.

It all boils down to if they took the right amount out your check. If yu get a refund they pulled too much from your checks. If you have to owe they didnt take enough out.

But think of it this way, if you get a refund the government has been using your money for a year to make $$. You are basically giving them an interest free loan on your $$. If you owe, you were getting an interest free loan from the govt that you gained interest on.

Most people like the refunds because they see it as free $$ they can piss away. When in reality it was theirs all along. They just cant save it throughout the year so they like getting the big check at the end of the year.

+1

You're not doing anything wrong.

exindust · Apr 12, 2007

Thanks guys,

The whole idea behind interest free money really makes sense to me now and Realize, realistically the more money I owe the better off in the long run I am no matter how crappy it feels to owe the government.

Thanks all.

And yes, waiting till the last minute is something I excel at.

Matt's 03 GT · Apr 12, 2007

If you have relatively stable income you can plan your tax liability very carefully. Just do some research and you can see what you should "owe" at the end of the year. Then go see HR and adjust your withholdings to match.

F.Y.I. If you can start a 401K it will help a lot, and you will start saving early. I advise looking into this right away.

GToddyT5 · Apr 12, 2007

goshia said:
Yeah living in California with a bunch of Democrates, ouch... The King of taxation state. Keep paying for those wonderful things like people that don't work, food stamps, insurance, global warming studies and changing the definition of a pet owner to animal gaurdian.

I guess it's better to have Republicans in office making tax cuts for the wealthy. Social programs for those who need them are morally rewarding. Anyone who takes advantage of something to which they aren't entitled to such an extent is a lowlife anyway.

GToddyT5 · Apr 12, 2007

Matt's 03 GT said:
If you have relatively stable income you can plan your tax liability very carefully. Just do some research and you can see what you should "owe" at the end of the year. Then go see HR and adjust your withholdings to match.

F.Y.I. If you can start a 401K it will help a lot, and you will start saving early. I advise looking into this right away.

Yes, 401k is free money if it's offered by your job. But Roth IRA, FTMFW!

04DarkShadowGT · Apr 12, 2007

GToddyT5 said:
I guess it's better to have Republicans in office making tax cuts for the wealthy. Social programs for those who need them are morally rewarding. Anyone who takes advantage of something to which they aren't entitled to such an extent is a lowlife anyway.

Considering the top 10% of the population pays 80% of the taxes I would say they deserve a break.

I am by no means wealthy but I make a descent living. I have no problem paying my taxes, but if I have to pay 40% or so of my income to taxes why shouldn't everyone.

GToddyT5 · Apr 12, 2007

04DarkShadowGT said:
Considering the top 10% of the population pays 80% of the taxes I would say they deserve a break.

I am by no means wealthy but I make a descent living. I have no problem paying my taxes, but if I have to pay 40% or so of my income to taxes why shouldn't everyone.

Because they can't afford to. The middle class is thinning. It's a huge problem in America today.

04DarkShadowGT · Apr 13, 2007

GToddyT5 said:
Because they can't afford to. The middle class is thinning. It's a huge problem in America today.

Just because they can afford to pay more taxes does not mean they should have to. What more do you want them to do? Pay for everything so you dont have to pay any.

If it doesnt effect you it doesnt matter right

You are punishing someone who has worked extremely hard and either started their own company or something along those lines.

I wouldnt object to paying 50% of my income to taxes if EVERYONE had to. What is fair for one is fair for all right?

Ordie · Apr 13, 2007

I dont think of a refund as a interest free loan to teh gov

I think of it as a savings plan for yearly car parts...,

GToddyT5 · Apr 13, 2007

Ordie said:
I dont think of a refund as a interest free loan to teh gov

I think of it as a savings plan for yearly car parts...,

You'd be better served by calculating the difference in tax and putting this money in some sort of interest-bearing account.

GToddyT5 · Apr 13, 2007

04DarkShadowGT said:
Just because they can afford to pay more taxes does not mean they should have to. What more do you want them to do? Pay for everything so you dont have to pay any.

If it doesnt effect you it doesnt matter right

You are punishing someone who has worked extremely hard and either started their own company or something along those lines.

I wouldnt object to paying 50% of my income to taxes if EVERYONE had to. What is fair for one is fair for all right?

Not exactly. There's a reason income tax is structured the way it is. I'm not saying this is ideal however, but having everyone pay the same percentage is not feasible. I assume that you are in the middle class, so I would think their plight would be of some concern.

goshia · Apr 13, 2007

GToddyT5 said:
Not exactly. There's a reason income tax is structured the way it is. I'm not saying this is ideal however, but having everyone pay the same percentage is not feasible. I assume that you are in the middle class, so I would think their plight would be of some concern.

Just because someone makes $200K per year does not mean they should be paying any more percentage wise into the bucket than someone that makes $50K per year. Its not the responsiblity of the goverment to parent people for thier entire life. "Live within your means"

Ordie · Apr 13, 2007

GToddyT5 said:
You'd be better served by calculating the difference in tax and putting this money in some sort of interest-bearing account.

I've already got money going into the Thrift Savings Plan (basically a 401K for military only they don't match). Plus it was more of a joke since this is a car forum..

To you guys who know about taxes... HELP!

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