 How does the United States pay for things? What are the technical details? |
| The United States doesn't have a 'bank account' so how does this work exactly. All checks from the United States government are from the Department of the Treasury, correct? And when ... |
|
 I forgot to add a w-4 to my income tax return.? |
I sent in my return but I forgot I worked at another company for a few weeks in Jan. Since I have sent it off already what do i do?
Additional Details
ty courtjesterjon, sry I meant w-2... |
|
 What should I do if I haven't filed income tax in 3 years? |
| Is it possible to file taxes for the years I missed? Could I request W-2's for previous years? What are the consequences for my actions?... |
|
 What does "US20-25K" mean in US salary language? |
I'm from Italy. I have to fill an international company online job application, what's the "k" for? is that per hour? gross? net?
Additional Details
thanks guys, i ... |
|
 How many Exemtions should I put on W2??? |
| My husband and I have two girls. If my husband put an exemtion of 3 on his W2, does that mean that I can only put 1 on mine? Please advise how it works, I am so clueless!... |
|
 Do i have to be a citizen of the uk to work there? |
| Im a US citizen, but if i went to the uk and hadnt got citizenship would i be able to work there?... |
|
 Is anyone else having problems with H&R Block? They won't give me my money, everyone I talk to says different. |
| I was thought I was going to get my refund from them on Friday the 25th of January. I filed my taxes on Jan 8 using taxcut and simplepay. I am using my emerald card from last year for the direct ... |
|
| Stimulus paper check question!! SS = 17? |
| We I received the letter stating what I will receive. Can anyone tell me how long between the letter and the check was for them? Yes I've seen the schedule of paper checks being mailed. H... |
|
 How do you file your taxes when living in one state and working in another? |
Living in Indiana but working in Chicago, Illinois.
Additional Details
Thanks for your answers so far but I really don't want to pay that much money to have them done. I'm sure ... |
|
 If property values do take a nose dive in the UK (40% is predicted) will council tax banding be re-assesed? |
| As we see on the news the sub prime market in the USA has been hit hard with property values dipping by up to 70% as financial institutions try desperately to unload negative equity - how would this ... |
|
| How avoid son having to pay whopping inheritance taxes on real estate? |
| When we bought our home I put my son's name on the deed to avoid his having to pay whopping inheritance taxes. In the event of my inevitable demise, he is already on title and just assumes full ... |
|
 Tax rebate really a rebate or truely a loan??? |
| Correct me if I'm wrong, but based on the 2001(?) rebate, won't this new rebate being worked on actually lower your tax refund in april 2009? I seem to remember that I was supposed to get ... |
|
 OK. I typed in the wrong $ amount for my question. If I make $1325.00? |
| I bring in $1325.00 a month in cash for helping to care for someone. How much should I set aside for Federal and State taxes? South Carolina is my state. Sorry about the previous amount mistake! I ... |
|
 Is there anybody that can help me with my irs problem ? |
| I CANT AFFORD TO PAY THE IRS....AND I DONT HAVE ANYTHING THEY CAN TAKE.......IS THERE ANYBODY THAT CAN HELP ME??????... |
|
|  |
magostereo2 | Why is not prudent to get big refunds when filing taxes? whats wrong with it? |
In my case, I usually got $700-$800 every year. I am single with 0 claims. Is there anything wrong with the amount of money I got back?
Thanks in advance. |
 |
 
TaxMan
 |
Financially, there is a big thing 'wrong' with it. The money you are getting back is your money. If you get a refund of $800, then essentially, you were giving the IRS $66 every month to hold for you for free. If I came to you and demanded $66 every month only to give it back to you in April of the following year, you'd either demand interest or you'd call the cops on me. The same holds true with the feds. Why give them money and not make interest on it. Wouldn't you rather put the $66 in the bank and make interest?
Better yet, change your withholding so you OWE $800 at the end of the year. Put the $132 in the bank each month and then pay the IRS on April 15th. They will not charge you interest if it is less than $1000. That's what I try to do.
Some people argue that this is the only way they will save. They say that if they put the money in the bank they will spend it on dumb things. I have two counter-arguements to that.
1) If one is that careless and impulsive, they should put the money in a separate account that doesn't have a check card or ATM card (or even a paper check). Then, they are much less likely to get at the money impulsively, BUT IT IS STILL THERE FOR EMERGENCIES much unlike it would be if it were given to the IRS. What do you do if you run into an emergency in December? You can't pull out your withholdings from the IRS.
2) OK, so you 'saved' all that money and got a refund from the IRS? Now what? What do you do when you get it? Most people say, "spend it on some big ticket item". That is NOT my definition of saving. Spending it on one big ticket item is no better than spending it on many smaller items...it is still 'spending'.
I believe people are much less likely to empty their bank account and blow it on some big ticket item that they to spend their refund check the same way. People view the refund check as free money instead of what it really is, their own hard-earned money. |
|
Jen M
 |
Well, remember that a refund = overpayment...it is in effect an INTREST FREE LOAN to the Government. If you don't mind giving a loan to the Government INTREST FREE then no, it is fine.
I always try to take the deductions to get back maybe 100 or so, even if I took that amount of money and put it in the bank I would be getting some intrest. And I have a lot of things I can think of to use that money right now instead of having to wait until tax time.
In fact some money guys will argue that it is better to arrange things so that you have to pay a little bit each year. But, I don't like that approach. |
|
ENB
|
By getting a big refund you are essentially giving the goverment an interest free lone on your money. It is better for you to keep the money and invest it. |
|
extra_37
|
nothing wrong with it if you don't mind giving the US government a $700-$800 interest free loan. The refund you are getting is YOUR money to begin with. You are letting the gov't use your moeny through out the year and they don't have to pay you interest. Could you use that $55-$65 extra in your bank account every month? |
|
endorphin_boy415
|
There's nothing "wrong" with receiving a huge refund - if you don't mind the government holding onto your money for a year.
If you fill out your W-2 form correctly, you should come pretty close to pay ONLY the tax you owe without paying extra.
For me personally, I'd rather owe a little at the end of the year rather than have the government hold onto my money. I don't earn any interest on that. |
|
v b
 |
Since interest rates are really low right now, let's look at this realistically.
You get a $800 refund. That means your average balance for the year with the IRS is $400. My checking account currently pays, what, 1%, so that's $4 of lost interest. (After tax, that would have been $3.) I sleep well and that's worth it to me.
I adjust my W-4 and I goof. No I owe the IRS $800 and I don't have it to send in. It takes me 2 months to come up with the money. I now PAY $8 in penalties and interest for those 2 months and lose a lot of sleep thinking the IRS is coming to get me....
Worse, I assume I'm getting a refund and bother filing until August (no extension). Lo, I owe $800. Now I'm paying $40 a month for 4-5 months. *ouch* |
|
Judy1
|
You are lending the government your money at no interest all year, and could have it to use yourself during the year.
But $700-800 really isn't all that big of a refund. So don't worry about it. |
|
Andrea Z
|
Since I was never very good at saving, I always plan to get a refund which usually comes back at the time my real estate taxes are due. It works for me. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
8 | 3 minutes(s) ago
| | | |
8 | 41 minutes(s) ago
| | | |
8 | 1 hour(s) ago
| | | |
8 | 2 hour(s) ago
| | | |
8 | 4 hour(s) ago
| | | |
8 | 9 hour(s) ago
| | | |
8 | 2 day(s) ago
| | | |
8 | 6 day(s) ago
| | | |
8 | 1 week(s) ago
| | | |
8 | 3 week(s) ago
| |
|
Homepage 
Financial
Forum 
Taxes 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
